Intraday buying power is the maximum dollar value of securities you can open and close within the same trading day using a margin account. It can include borrowed funds, so it may exceed your cash balance. Use it for positions you plan to close the same day, not for trades you may hold overnight.
A $25,000 intraday buying power balance means your broker may allow up to that value in eligible intraday positions. It does not mean you have $25,000 in cash.
FINRA began replacing the traditional pattern day trader framework with intraday margin requirements on June 4, 2026. Brokers have until October 20, 2027 to complete the transition, so displayed buying power may differ between firms.
| Term | Meaning |
|---|---|
| Intraday buying power | Amount available for positions you plan to open and close the same day |
| Overnight or margin buying power | Amount available for positions that may remain open after the trading day |
| Cash available to trade | Cash available without borrowing on margin |
| Maintenance margin | Equity your broker requires you to maintain against open positions |
How Does Intraday Buying Power Work?
Intraday buying power sets a limit on the value of positions you can open during the trading day. The amount available for a particular trade depends on several factors:
- The security's margin requirement
- Your broker's risk controls
- Your account equity
- Existing positions and open orders
- Market volatility
- Whether the security is marginable
- Whether you close the position before the broker's cutoff
If your account shows $25,000 in intraday buying power, you may be able to open positions worth up to that amount. Your broker may reduce the available amount for a specific security or order.
The balance may include money borrowed from the broker. That borrowing gives you leverage, which increases the size of both potential gains and potential losses.
What Is the Difference Between Intraday and Overnight Buying Power?
Intraday buying power applies to trades closed during the same trading day. Overnight buying power applies to positions you keep open after the trading day ends.
Consider this example:
- Your account has $10,000 of overnight buying power.
- Your broker displays $40,000 of intraday buying power.
- You buy $30,000 of stock during the day.
- You sell the stock before the broker's cutoff.
The trade may fit within your intraday buying power. If you keep the $30,000 position overnight, it may exceed your overnight buying power. Your broker could issue a margin call, restrict trading or liquidate the position.
Charles Schwab says positions opened using its Intraday Margin Buying Power are intended to close on the same day. Schwab identifies 8:00 p.m. Eastern Time as the cutoff for this feature, but cutoff times and policies vary by broker.
How Is Intraday Buying Power Calculated?
The calculation depends on your broker, account type, security and applicable margin rules.
Under the traditional U.S. pattern day trader framework, qualifying accounts could generally receive up to four times their maintenance margin excess for eligible equity securities. FINRA defined day-trading buying power as previous-day account equity minus maintenance margin requirements, multiplied by four for equity securities.
For example:
- Maintenance margin excess: $5,000
- Maximum day-trading buying power: $20,000
- Calculation: $5,000 × 4 = $20,000
That formula is an illustration, not a guarantee of the balance shown in your account.
During the transition to intraday margin requirements, some brokers may continue to show legacy day-trading balances while others use different calculations. Check your broker's current margin terms rather than relying on the traditional four-times formula.
Why Does Intraday Buying Power Change During the Day?
Intraday buying power changes because your broker recalculates the amount available for new trades as your account and orders change.
The balance may change after you:
- Execute a purchase or sale
- Place or cancel an order
- Deposit or withdraw funds
- Open or close another leveraged position
- Hold securities whose market value changes
- Trade a security whose margin requirement changes
Fidelity says its intraday buying power updates during the trading day to reflect executions, money movement, core cash and buying power allocated to open orders.
A falling stock price can reduce your account equity and leave you with less buying power. A concentrated position or a volatile security may also lead the broker to raise its margin requirement.
Is Intraday Buying Power the Same as Leverage?
Leverage is borrowed money, while intraday buying power is the amount your broker permits you to control for intraday trading.
For example, an account with $10,000 in equity might show $30,000 in intraday buying power. The additional $20,000 represents potential buying capacity. It is not money you own outright.
Leverage creates several risks:
- A small price movement can produce a larger percentage loss on your account equity.
- Losses can reduce your buying power during the trading session.
- Your broker may require additional funds if your equity falls below its requirements.
- The broker may liquidate positions under the terms of your margin agreement.
FINRA warns that frequent intraday trading with margin can result in losing some or all of the money invested.
Can You Use Intraday Buying Power for Stocks and Options?
You may be able to use intraday buying power for stocks and options, but the amount depends on the security.
A fully marginable stock may receive the broker's standard intraday treatment. Options, low-priced stocks, leveraged exchange-traded products and other non-marginable securities may have a higher requirement or no intraday leverage.
Fidelity notes that non-marginable securities can require 100% margin. Exceeding the applicable intraday balance can lead to account restrictions or the loss of margin privileges.
Before placing a trade, check the buying power shown for the specific security, not only the general account balance.
What Happens If You Hold an Intraday Position Overnight?
Holding a position past your broker's cutoff can create a margin violation or leave you without enough overnight buying power.
Your broker may:
- Issue a margin call
- Restrict further trading
- Require a deposit of cash or marginable securities
- Liquidate positions
- Reduce your future intraday buying power
Fidelity warns that opening a position with intraday buying power and holding it overnight can create Federal, exchange or house margin calls.
If you may hold the position overnight, check your overnight or margin buying power before placing the trade.
Does a Cash Account Have Intraday Buying Power?
A cash account generally does not provide margin-based intraday buying power.
You must use available cash and follow cash-account settlement rules. You can still buy and sell securities during the same day when the purchases are fully paid for, but the account does not provide the borrowing capacity of a margin account.
FINRA distinguishes cash-account trading from margin-account day trading and states that securities bought in a cash account must be paid for in full before they are sold.
What Should You Check Before Using Intraday Buying Power?
Before opening a leveraged intraday position, check the trade, the account and the broker's rules.
- Closing time: Confirm that you can close the position before your broker's cutoff.
- Overnight buying power: Check that your account can support the position if you may keep it open.
- Security eligibility: Confirm that the security qualifies for the displayed buying power.
- Account equity: Make sure your account can absorb a loss.
- Open orders: Check whether existing orders are using part of your available buying power.
- Margin policy: Understand the broker's margin-call and liquidation rules.
Bottom Line
Treat intraday buying power as a broker-set limit for same-day positions, not as cash. If you might carry a trade overnight, check your overnight buying power before placing it.