💡 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!
When you invest using a margin account at Hapi, it is normal for the buying power available for a specific asset to differ from your total buying power. This depends on the margin requirements of each asset and how your portfolio is structured.
Below, we explain the key concepts to help you understand this correctly.
What are margin requirements?
Margin requirements indicate how much of your own money you must contribute and maintain when investing using a line of credit (margin). Not all assets have the same requirements.
There are two main types:
1. Initial requirement
This is the minimum amount of your own capital that you must contribute to open an investment using margin.
For many assets, this requirement is typically 50% of the investment value, although it may be higher for more volatile or higher-risk assets.
This means you cannot finance 100% of the purchase using margin.
Example
(For illustrative purposes only)
If you want to buy $10,000 worth of stock and the initial requirement is 50%, you need at least $5,000 of your own funds to open the position.
2. Maintenance requirement
This is the minimum level of your own capital that you must maintain to keep a position open using margin.
If the value of your assets decreases and your capital falls below this level, you may need to:
Deposit additional funds, or
Reduce positions (for example, by selling assets).
This is part of the requirements applicable to margin accounts.
What does “Buying power for an asset” mean?
Buying power for an asset is the combination of your available capital and enabled margin that you can specifically use to invest in that asset.
This value may be lower than your total buying power because:
The asset does not allow margin (100% initial requirement).
The asset has a higher margin requirement.
The asset has higher volatility or other risk characteristics.
You can always see this amount in the asset details and before confirming the trade.
Why does it change depending on the asset?
Not all assets allow margin in the same way:
Some do not allow margin (for example, assets such as cryptocurrencies)
Others allow using only a portion of the available margin
Some allow using a higher proportion of margin, subject to applicable requirements
That’s why, even if you have margin available in your account, the amount you can use depends on the specific asset.
Summary
Buying power may vary depending on the asset
Each asset has an initial requirement and a maintenance requirement
The buying power shown for an asset already reflects these conditions
This is related to risk management and compliance with margin account requirements
If you have questions about the margin requirements of a specific asset or how your buying power is calculated, you can contact our support team.
If you have any questions or experienced any issues, feel free to reach out — we’ll be happy to help.
Legal Disclaimer: This content is for informational purposes only and does not constitute investment advice or a recommendation. Day Trading rules may vary depending on applicable regulations, account type, and platform conditions. Day Trading is a high-frequency strategy that may involve risks, including significant losses over short periods of time.