What is Buying Power and Excess Margin?

Buying Power

Investment Accounts:

Your combined "Buying Power" represents the funds currently available from both the Canadian and U.S. sides of your RBC Direct Investing account to complete a trade. This value includes any intraday activity on your account and is calculated in real-time.

Excess Margin

Margin Accounts:

Buying power is Excess Margin and represents the loan value available to you in real time to place trades in your account.

Margin loan values differ depending on the types of investments you hold, their eligibility and price. The status of your orders can also affect the loan value extended to your margin account. See Order Status below to learn more.

For stocks and options

Loan values are based on the real time price of securities held in your account throughout the trading day and any trades completed, whether or not the trades have settled.

For fixed income and mutual funds

Loan values are based on the previous business day’s closing price for securities held in your account and any trades completed in the trading day, whether or not the trades have settled.

Note: Foreign exchange rates used to determine buying power and excess margin are as of the end of the previous business day.

Eligibility	Capital Required	Loan Value	Maximum Loan Value (CAD)
Reduced Margin	30% or less	70% or more	$400,000
Priced at $5.00 and over	50% or more	50% or less	$200,000
Priced at $3.00 - $4.99	75% or more	25% or less	$100,000
		Per Account	$2,500,000

Order Status:

• Filled or open buy orders will reduce the available Excess Margin.
• Filled sell orders will increase Excess Margin.
• Open sell orders will not affect Excess Margin.
• Pending funds transfers out will reduce Excess Margin
• Pending transfers in will not be included in the available Excess Margin until the funds are transferred into the account.

Read Understanding Margin Accounts to learn more.