NT Buying Power

[tshirtdeal]

Not sure if this is the correct place to post but,

I am a little lost on understanding buying power, since my NT is acting wierd right now I cannot tell if it is effecting my buying power or if it is really how buying power acts in the day from trading...

if I understand it right when you are labled a PDT you get a 4 to 1 buying power, so if I have $25..000 in my account I would have a $100,000 to trade with...

now if I purchase 1000 shares of a 100 dollar stock I am ok so long as the stock goes up? If it goes down 10% what would happen?

once I sell the stock say for a 10% gain and have 110,000 is my buying power instantly adjusted? does it adjust on every buy and sell instantly?


my NT account has an 80,000 buying power each start up to the day, sometimes I am only down $100 and in one trade of $35,000 in equity, I go to enter a second position on a different stock at $35,000 and the order gets rejected... when I look at my account buying power is negative, like -75,000 buying power and cash value is whatever...

if my account is only down 100 bucks from prevoius trading and I am in a trade which took $35,000 and say it has not gone up or down and is worth that $35,000 in equity shouldnt I be able to still buy $35,000 worth of another stock at the same time?

Sorry if this is confusing or doesnt make since, I just do not know if I don't understand buying power with day trading or if NT is not caculating it corectly..

Thanks for any and all help...

[NinjaTrader_Jason]

Please see the following forum threads for information regarding the sim101 account.

http://www.ninjatrader-support2.com/vb/showthread.php?t=5887&highlight=maintenance+margin

http://www.ninjatrader-support2.com/vb/showthread.php?t=1898&highlight=maintenance+margin

[tshirtdeal]

Thanks Jason

Thanks for the help,

a quick question, when trading live through NT and IB will NT reject orders that do not have enough buying power? Will the pop up come up and say not enough money in the account or is that just for the "sim" account?

Thanks again!

[NinjaTrader_Jason]

Yes, you will receive an error message.

[tshirtdeal]

Thanks Jason,

thanks,

so the buying power and margins will automatically run off my IB account or will I ahve to set them myself?

I am just lost, my sim account has 40,000 cash and 80,000 buying power, I make a few trades and am down 8 bucks, I then take a trade which costs 35,000 and my buying power goes to - 5700 and cash to negative 2700 even though the trade I am in is up....

can anyone tell me if this is how buying power actually work?

and now i do the same thing exept my account is down 167 and I enter both trades witha buying power of 250000 and a cash value of 125,000

and the potential PnL is way off again, so I think it is atied to together with whatever this major problem I am having is,..

[tshirtdeal]

wow

now I sold the shares for a over 400 profit went to reverse my position after exiting a profitable trade, got rejected for the tarde and my buying power is - 60,000 with a cash value of - 30,000

I am lost but something is really screwed up... I could I go to cahs from 35,000 dollars with of shares bought, make 400 prift on it and be rejected from entering a new position?

[NinjaTrader_Jason]

Yes, your IB account will be used for buying power and margins. Please see the link below for more information.

http://www.ninjatrader-support2.com/vb/showthread.php?t=5474&highlight=account+information

Unfortunately the sim101 account settings are a grey area. NinjaTrader will try to find a 'reasonable' approach, but it will unlikely reflect any real broker calculations.