Analysis

Buying Power

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Available capital for opening new positions

What is Buying Power?

Buying Power The total amount of capital available for opening new positions, including cash and the margin value of existing securities. Selling options reduces buying power by the margin requirement of the position. Defined-risk strategies like spreads consume less buying power than naked options. Portfolio margin accounts have significantly more buying power than Reg T accounts.

Complete Definition

The total amount of capital available for opening new positions, including cash and the margin value of existing securities. Selling options reduces buying power by the margin requirement of the position. Defined-risk strategies like spreads consume less buying power than naked options. Portfolio margin accounts have significantly more buying power than Reg T accounts.

Related Terms

Margin Portfolio Margin Maintenance Margin Position Sizing

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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