💡 Get a head start! Learn all about Margin Accounts before they go live. This feature isn't available yet, but we’re working hard for its big debut!
At Hapi, we want you to clearly understand what makes up your Buying Power and how to interpret it within the app. This will help you have better control over your money and how funds are used in your account.
What is Buying Power?
Buying Power is the total amount of money available in your account to invest in stocks. This amount may include your own cash and, if you have a margin account, an additional line of credit, minus any funds already committed to other transactions.
Buying Power may vary depending on the asset you want to purchase, based on the margin requirements applicable to that asset.
The formula is:
Buying Power = My Cash + Total Margin – Margin Used – Pending Purchases
What does each component mean?
My Cash
This is your own cash available to withdraw or use for new investments.
This section may include “funds in process” or “pending sales.” This refers to proceeds from sales made today, which are still in the settlement process (T+1). You can use them to invest immediately in a margin account, but they are not available for withdrawal yet.
When you buy an asset, your cash is used first. In other words, you will only start using margin once your available cash has been fully invested.
Total Margin
This is the margin credit line available to you, based on your eligible assets and account balance.
This amount can change over time and is subject to market conditions and internal policies.
This section is only visible if you have an approved margin account.
Not all assets are eligible to use margin, either fully or partially.
Margin Used
This is the portion of your margin credit that you are currently using. Interest is charged on this amount while it is active. If you are not using margin, this value will be zero.
This section is only visible if you have an approved margin account.
When you make a deposit or sell assets, the margin used is repaid first. For example, if you have used $500 in margin and deposit $1,000, your cash will increase by $500 after fully repaying the margin.
Pending Purchases
This is money reserved for orders that have not yet been executed (such as limit or scheduled orders).
Until they are executed or canceled, these funds will not be available.
Why can’t I use all my Buying Power to invest in certain assets?
For regulatory reasons, not all assets are eligible for margin investing. When selecting an asset, you will be able to see whether it is eligible to be purchased with borrowed funds or not. Additionally, the amount of margin that can be used may vary depending on the asset. There are three types of assets:
Not eligible for margin investing: You can only invest in these assets using your own cash. Examples include all cryptocurrencies and newly listed assets (IPOs).
Eligible to use full margin: You can use your entire margin line to buy these assets, as long as your cash has already been fully invested.
Eligible to use up to 50% margin: For these assets, you can use part of your margin, but at least 50% of the purchase must be funded with your own cash.
Note: Cryptocurrencies, courses, Prime subscriptions, and fees are always charged from your cash and never from your margin loan.
Common examples
(The following examples are for illustrative purposes only)
General case
Suppose you see the following in your Buying Power:
My Cash: $0
Total Margin: $2,000
Margin Used: -$500
Pending Purchases: -$100
👉 In this case, your Buying Power would be:
$0 + $2,000 – $500 – $100 = $1,400
This means you could have up to $1,400 available to invest, subject to the asset’s conditions. Interest is only applied to the margin used ($500).
User attempts to buy a cryptocurrency
Before placing the order: Buying Power = $1,400 (My Cash $0, see previous example).
On the crypto order screen: Buying Power = $0
Why?: Because cryptocurrencies are not eligible for margin trading, so you can only use cash.
User attempts to buy an asset with a 50% requirement:
Before placing the order: Buying Power = $1,900 (My Cash = $500, Total Margin = $2,000, Margin Used = $500, Pending Purchases = $100).
On the asset order screen: Buying Power = $1,200
Why?: Because the asset only allows up to 50% of the available margin line to be used.
User buys an asset with a 50% requirement for less than total Buying Power:
Before purchase: Buying Power = $1,900 (My Cash = $500, Total Margin = $2,000, Margin Used = $500, Pending Purchases = $100).
After purchasing $700: Buying Power = $1,200
(My Cash = $0, Total Margin = $2,000, Margin Used = $700, Pending Purchases = $100).
Why? Because the purchase amount was lower than total Buying Power, your cash ($500) was used first before using margin.
If you have questions or experienced any issues with your Buying Power, feel free to contact us — we’ll be happy to help.
Legal Disclaimer: Using margin involves risks and is not suitable for all investors. When trading on margin, you can lose more than your initial investment. Past performance does not guarantee future results. This content is for informational purposes only and does not constitute advice, a recommendation, or an offer to buy or sell securities. Margin use is subject to market conditions, regulatory requirements, and Hapi’s internal policies.