Buying power is the cash you have available to buy stocks, options, or crypto on Robinhood right now

Your buying power is not the same as your account balance. It is the actual amount of money Robinhood will let you spend on trades at this moment. If you have $1,000 in your account but your buying power shows $2,000, you can spend up to $2,000 — the extra $1,000 comes from margin, which is borrowed money.

Robinhood shows your buying power in the app under your account name or in the "Buying Power" section of your account details. The number updates throughout the trading day as you make trades, deposits arrive, or settled funds change. Understanding the difference between your balance and your buying power prevents you from accidentally trying to buy more than you can actually spend.

Key Takeaways

  • Buying power includes both your own cash and any margin (borrowed money) Robinhood allows you to use.
  • Unsettled funds from recent sales do not count toward buying power until they settle, which takes two business days.
  • Margin buying power is only available on Robinhood Gold accounts and requires a subscription fee.
  • Day trading rules limit how many times you can buy and sell the same stock within five business days if your account is under $25,000.

How your account balance and buying power differ

Your account balance is the total value of everything in your account: cash plus the current value of all your holdings. Your buying power is how much you can spend right now on new trades. These are two separate numbers.

If you have $5,000 in cash and own $3,000 worth of Apple stock, your account balance is $8,000. But your buying power might be $5,000 (just your cash) or higher if you have margin enabled. The buying power number is what matters when you are about to place a trade — Robinhood will reject the order if you try to spend more than your buying power allows.

Why unsettled funds reduce your buying power

When you sell a stock on Robinhood, the money does not land in your buying power when ready. It takes two business days for the sale to settle. Until then, that money is "unsettled" and does not count toward what you can spend.

Example: You sell $2,000 worth of stock on a Monday. Your account balance updates right away to show the $2,000, but your buying power does not increase until Wednesday. If you try to buy something on Tuesday using that $2,000, Robinhood will reject the order. This rule applies to all stock and crypto sales. Options settle in one business day, but the same delay applies.

Margin and how it increases your buying power

Margin is borrowed money that Robinhood lends you to buy more securities than your cash alone would allow. If you have a Robinhood Gold subscription (which costs a monthly fee), you gain access to margin buying power on top of your cash.

The amount of margin available depends on your account value. Robinhood typically offers up to 2x your account balance in margin, meaning if you have $5,000 in your account, you might have up to $10,000 in total buying power. However, the exact amount varies and Robinhood can reduce it at any time. Margin comes with interest charges on the borrowed amount and carries real risk — if your holdings drop in value, Robinhood may force you to sell positions to cover the loan.

Day trading rules and buying power limits

If your account has less than $25,000, you are subject to the Pattern Day Trader (PDT) rule. This rule limits how many times you can buy and sell the same security within a five-business-day window. If you make four or more day trades in five days, Robinhood will flag your account as a pattern day trader and restrict your buying power.

Once flagged, your buying power drops to a minimum of $25,000 for 90 days, or you can deposit cash to bring your account above $25,000 to lift the restriction when ready. This rule is set by the Financial Industry Regulatory Authority (FINRA), not by Robinhood, and applies across all brokers. Accounts with $25,000 or more are not subject to this limit.

How to check your buying power in the app

Open the Robinhood app and tap your account icon at the bottom right. Select "Account" or "Buying Power" — the exact label depends on which version of the app you have. You will see your total buying power displayed prominently, along with a breakdown showing how much is cash and how much is margin (if applicable).

The buying power number updates in real time during market hours. If you place a trade, the buying power decreases by the amount you spent. If a deposit clears or funds settle, it increases. Checking this number before you trade prevents the frustration of placing an order only to have it rejected for insufficient buying power.

What happens if you try to spend more than your buying power

Robinhood will reject any trade that exceeds your available buying power. The app will show an error message saying something like "Insufficient buying power" or "Order rejected." You cannot accidentally go over — the system blocks it.

If you see this error, you have a few options: wait for unsettled funds to settle (two business days for stocks), deposit more cash, or reduce the size of the order. If you have margin available but have not enabled it yet, you can subscribe to Robinhood Gold to unlock that buying power, though this requires a monthly fee.

Frequently Asked Questions

Does my buying power include the value of stocks I already own?

No. Your buying power is only the cash you have available to spend, plus any margin you have enabled. The value of your existing stock holdings is part of your account balance but does not count as buying power. If you sell a stock, the proceeds eventually become buying power after they settle in two business days.

Can I use buying power to buy options or crypto?

Yes. Buying power works the same way for options, stocks, and crypto on Robinhood. The amount you can spend is limited by your total buying power, regardless of what you are buying. Options settle faster than stocks (one business day), so unsettled options proceeds become available sooner.

What is the difference between buying power and cash?

Cash is money you have deposited into your account. Buying power is cash plus any margin you have available. If you have $3,000 in cash and $2,000 in margin, your buying power is $5,000 but your cash is only $3,000. Margin is borrowed money you pay interest on.

Why did my buying power drop after I placed a trade?

Your buying power decreases by the amount you spent as soon as the trade is placed. If you bought $500 worth of stock and your buying power was $2,000, it is now $1,500. The buying power will not return until you sell that position and the sale settles two business days later.

Does Robinhood charge interest on margin buying power?

Yes. If you borrow money through margin, Robinhood charges interest on the borrowed amount. The interest rate varies based on how much you borrow and your account size. You can see the current rate in your account settings. Interest is charged daily and added to your account balance.