What is instant buying power? Can I trade with it?
Instant buying power (provisional cash) is provided while your ACH deposit is in transit so you can trade before the deposits settle, which takes 5 business days. Before your deposit is fully settled, we give you provisional cash as instant buying power so you can start trading right away. You can trade stocks and ETFs with instant buying power. However, you cannot use instant buying power to trade options.
Why is my cash balance becomes negative after making an ACH deposit?
The provisional credit will increase your buying power, but not your cash balance or net account value. If you trade with provisional credit, your cash balance will become negative. There is no interest charged for trading on provisional cash. Once your deposit settles, the amount will be added to your cash balance and net account value.
Provisional Credit Delivery Time
|Deposit Time||When will provisional credit will be given?|
|0:00-8:00 EST||Around 8:00 am of the same day|
|8:00 - 16:00 EST||Immediately|
|16:00-24:00 EST||Around 8:00 am of the following day|
Please note: If a deposit is made on the weekends, it will not be processed until Monday morning.
How much provisional credit I will be given? What I can do to increase the amount of it?
The maximum instant buying power we can give depends on your deposit amount, account type, cash balance, the market value of your positions, total amount of incoming funds, and your credit scores, etc. The limit for a newly-funded account is usually $1000. If the amount of your in-flight deposits is less than your limit, you will get provisional credit equal to your in-flight deposit(s). If your in-flight deposit(s) exceed the limit, the maximum you can receive is the limit of your provisional credit. The limit of provisional credit may increase after your deposit settles. The higher your net account value, the more provisional cash you will be awarded.
To check on your incoming deposit:
1) Tap your avatar on the top right corner of the Watchlist/Market/Messages page
2) Tap Details next to "Total Account Value"
3) Scroll down to "Payable &Receivable.”
4) Tap "Incoming Funds.”