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Buying Power Factors

Best Practices

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Prior to execution, double check that Buying Power Reduction (BPR) is in an acceptable range. This is the amount needed to put on the trade. Buying power reduction is an excellent way to determine max risk.

Our research shows that over the last 15 years, there is roughly a 0.1% chance that a trade’s P/L results in a loss that exceeds the BPR.

Join Tom and Tony today as they cover everything you need to know about buying power.

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