Day Trade Buying Power DTBP

Day Trade Buying Power (DTBP) refers to the funds you have available in your account to place trades on a given trading day.

DTBP applies to:

• Margin accounts classified as Pattern Day Trading accounts.
• Accounts with $25,000 or more in equity.

DTBP is calculated by multiplying the beginning of day maintenance excess by four. Margin rules for DTBP are industry-wide and are established by FINRA.

DTBP In Action

Your DTBP is determined at the beginning of the day and will not increase based on sales of marginable stocks that were held overnight or deposits made on the same day. You will need to wait until the following day to see the DTBP from these actions reflected in your account.

A purchase during the current day will decrease your DTBP and a subsequent sale of that stock (a day trade) would increase it again.

Margin Requirements are determined by FINRA: 4210. Margin Requirements.

From FINRA:

What is my day-trading buying power under the rules?

You can trade up to four times your maintenance margin excess as of the close of business of the previous day.

It is important to note that your firm may impose a higher minimum equity requirement and/or may restrict your trading to less than four times the day trader's maintenance margin excess. You should contact your brokerage firm to obtain more information on whether it imposes more stringent margin requirements.