In a standard cash account, your buying power is straightforward: it is the you have on hand.
This is where things get more powerful—and more dangerous. A margin account allows you to borrow money from your broker to buy more stock than you could with your own cash. stock buying power
For most stocks, the Federal Reserve (via Regulation T) allows you to borrow up to 50% of the purchase price. This gives you 2x buying power . If you deposit $5,000, you can buy $10,000 worth of stock. In a standard cash account, your buying power