TradeStation Help
This example demonstrates the calculation of Overnight Buying Power through a series of transactions over five days.
| Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | |
|---|---|---|---|---|---|
| Cash Balance | $50,000 | $25,000 | $0 | $0 | $0 |
| Positions | None - Market value = $0 | 500 MSFT marked to Market at $50, Long Market Value = $25,000. | 1500 MSFT marked to Market at $50, Long Market Value = $75,000. | 1500 MSFT marked to Market at $52, Long Market Value = $78,000. | 1500 MSFT marked to Market at $49, Long Market Value = $73,500. |
| Transactions | Buy 500 shares of MSFT @ $50 = $25,000. | Buy 1000 shares of MSFT @ $50 = $50,000. | None - MSFT closes at $52. | None - MSFT closes at $49. | None |
| Margin Debit | $0 | $0 | $25,000 | $25,000 | $25,000 |
| Short Sale Proceeds Credit | $0 | $0 | $0 | $0 | $0 |
| Margin Requirement | $0 | $12,500 | $37,500 | $39,000 | $36,750 |
| Maintenance Excess Equity | $50,000 | $37,500 | $12,500 | $14,000 | $11,750 |
| Overnight Buying Power | $100,000 | $75,000 | $25,000 | $28,000 | $23,500 |
In the calculation of Overnight Buying Power, unrealized losses are included as well as unrealized gains. However, unrealized gains are only included to the extent of unrealized losses because they can only offset unrealized losses; they cannot increase overall Buying Power. Therefore, an increase in Buying Power will not be evident until the following day.