Understanding Buying Power And Margin On SageTrader
How buying power works
Buying power is how much you can trade with beyond your account's own equity. On SageTrader, buying power starts at 4x your account equity for long positions. So, with $10,000 in account equity, long buying power could be up to $40,000, using the standard 4x ratio.
You can also reuse funds from a sell order while it's still settling, rather than waiting out the full settlement period before placing your next trade. In practice, that means the cash from a sale can go back to work on a new position the same day, instead of sitting unavailable until the trade officially settles a day or two later.
Short selling and margin
Short selling requires margin. To short-sell, you'll need to enable margin, with a $3,000 initial deposit and a $2,000 balance maintained. Once margin is enabled, long buying power stays at 4x, and short buying power is 1:1 against your account equity — so shorting doesn't carry the same multiplier long positions do.
Buying power on SageTrader Pro
SageTrader Pro uses the same structure: 4x buying power for long positions, 1:1 for short positions. The buying power ratios don't change between the two accounts — what changes is the tools available once you're trading on Pro, like routing control and Level 2 data.
What to keep in mind
Buying power beyond your own equity uses borrowed funds, which may be charged interest. Larger positions can increase both potential profits and losses — the same 4x multiplier that can grow a winning trade can grow a losing one too.
Frequently asked questions
What is buying power? It's the total dollar amount you're able to trade with, combining your own account equity with any margin available to you.
What happens if I use all my buying power? You won't be able to open new positions until you close out existing ones or add funds — using all your buying power doesn't create a demand for extra cash acquire immediately, but it does mean no room for additional trades.
Choosing an account
There's an account built for most trading styles, and Pro is there for traders who want more control. Click the option that may be best suited to you.
Extra buying power and/or margin trading amplifies both gains and losses. This article is for informational purposes only and is not financial advice. SageTrader, LLC does not offer investment advice; consider your own financial situation and consult a licensed advisor before trading.