Robinhood buying power is the amount of money currently available to purchase stocks, options, futures, or cryptocurrency. In the Robinhood app, you can find it under Account > Buying power.
Buying power can differ from your total account value or cash balance. Pending deposits, unsettled trade proceeds, margin, account type, and trading restrictions can all affect the amount available for a purchase.
Robinhood Buying Power at a Glance
| Situation | How buying power generally works |
|---|---|
| Cash account | Uses available settled cash. Stock and options sale proceeds usually take one trading day to settle. |
| Margin account | May include borrowed funds and unsettled stock or options sale proceeds. |
| Instant Deposit | Part of a pending bank deposit may be available before the transfer finishes. |
| Crypto sale | Crypto sale proceeds are generally available immediately for purchases. |
| Options purchase | Instant Deposit funds may be restricted until the bank deposit becomes available. |
| Margin account for crypto | Margin buying power cannot be used to purchase cryptocurrency. |
How Does Buying Power Work in a Robinhood Cash Account?
A Robinhood cash account generally lets you trade with cash that is available and settled. Stock and options sale proceeds usually take one trading day to settle before you can reuse them in a cash account.
For example, suppose your account has:
- $1,000 in settled cash
- No pending deposits
- No unsettled transactions
Your buying power may be about $1,000 for eligible purchases.
If you sell $500 of stock, the sale proceeds may not be available for another stock purchase right away. You generally need to wait for the transaction to settle.
How Does Buying Power Work in a Robinhood Margin Account?
A Robinhood margin account may provide more buying power by allowing you to borrow against eligible investments. The amount can change with the value and volatility of your investments and the maintenance requirements for your positions.
A margin account may also let you trade with proceeds from unsettled stock and options sales instead of waiting one trading day.
Borrowed buying power is not cash you own. You must repay what you borrow, and leverage can increase both gains and losses. If your account falls below the required maintenance level, Robinhood may ask you to add funds or sell investments to cover the shortfall.
Why Is My Robinhood Buying Power Lower Than My Cash Balance?
Robinhood buying power can be lower than your cash balance for several reasons:
Unsettled sale proceeds Money from a recent stock or options sale may still be waiting to settle in a cash account.
Pending bank deposits A deposit may still be processing, even if Instant Deposit has made part of it available.
Instant Deposit limits Robinhood may make only part of a pending deposit available right away. The rest becomes available after the bank transfer clears, which Robinhood says can take up to five business days.
Margin requirements Certain stocks, concentrated positions, and volatile securities may require more collateral. That reduces the buying power available for the trade.
Transfer reversals or account restrictions Reversed deposits, fraud reviews, outdated account information, account levies, and other restrictions can reduce your available buying power.
Security-specific requirements The amount available for one stock or other security may be lower than your total buying power because Robinhood applies requirements to that particular investment.
What Is Instant Deposit Buying Power?
Instant Deposit buying power is temporary access to part of a bank deposit before the deposit fully clears. Robinhood says eligible users may receive instant access to up to $1,000, although the amount depends on account and deposit eligibility. Eligible Robinhood Gold users may receive access to larger Instant Deposits.
The money is not fully settled until the bank transfer is complete. If the transfer is reversed after you use the funds, your Robinhood account could develop a deficit that you must cover.
Can You Use Instant Deposit Buying Power for Options?
Robinhood may restrict options trading with Instant Deposit funds because the deposit has not fully settled. You may need to wait until the deposit becomes available before using it for options.
Does Buying Power Include Margin?
Buying power can include margin in a margin account. It may consist of:
- Available settled cash
- Eligible unsettled sale proceeds
- Borrowing capacity based on your investments
- Available Instant Deposit funds
The margin portion is money you may borrow from Robinhood. The available amount can change as the prices and volatility of your investments change.
Is Buying Power the Same as Cash?
No. Cash is money in the account, while buying power is the amount currently permitted for purchases.
Cash may be connected to a pending deposit, an unsettled stock sale, a margin balance, funds restricted from a particular trade, or a transfer that has not cleared. Because of those restrictions, the buying power shown for a transaction can differ from your cash balance or total portfolio value.
How Do You Check Buying Power in Robinhood?
In the Robinhood app:
- Open Account.
- Open the menu.
- Select Buying power.
- Review the amount available for your investing account.
Robinhood separates investing, crypto, and futures activity across different accounts. Buying power available for one product may not apply to another.
Robinhood Buying Power Depends on the Trade
Robinhood buying power is the amount you can use for a purchase at that moment. In a cash account, it mainly reflects available settled funds. In a margin account, it may also include unsettled proceeds and money you can borrow.
If the amount looks lower than expected, check for unsettled sales, pending deposits, Instant Deposit limits, margin requirements, or account restrictions before placing the trade.