Related definitions > Purchasing power
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Purchasing power is the amount of money an investor can use to buy securities in a margin sub-account. It is the total cash held by an investor in the trading account plus the maximum margin loan granted to that investor. At BSC, the purchasing power of investors is usually twice their equity
How is purchasing power calculated?
Example. Investor has 10,000,000 VND cash in his account and wants to buy ABC stock using margin. The initial margin required for ABC is 50%, so the purchasing power is calculated as follows:
VND 10,000,000/ 50% = VND 20,000,000

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