Why was my buying power reduced?
Your buying power depends on several factors including your cash balance, the maintenance margin excess in your account, and Redbridge's margin requirements for the positions you hold. Some reasons your buying power may decrease include:
• Your equity dropped due to market changes or losses, reducing excess margin
• Redbridge increased margin requirements for open positions or recent trades
• You opened a new position that increased risk and requirements for your account
• You withdrew funds, decreasing your excess margin and available buying power • Your positions are concentrated in a few volatile stocks, increasing margin needs • You began actively day trading which has higher requirements due to increased risk
Redbridge can decrease your buying power or issue a margin call at any time to properly collateralize risks in your account. We monitor requirements carefully each day for all margin customers. Please contact us if you have more questions about changes in your buying power.