What is Buying Power?
Ans: IDBI Capital keeps track of the funds inflows and outflows actual/expected in your trading account through the concept of Buying Power. Buying Power at any point of time indicates the total amount of stocks, Mutual Funds or IPOs you can buy. In order to trade for a particular amount in any of these instruments through IDBIpaisabuilder.in, you first need to create “Buying Power” by transferring funds to your trading account/marking a Hold in your bank account. Alternatively, you can create Buying Power by selling shares from your DP account.
Sometimes referred to as purchasing power, buying power is defined as the current value of available cash in relation to the quality and quantity of products that can purchased using those available assets. In terms of investing, buying power normally refers to the value of money that is available for use in the purchase of securities on margin. Essentially, the use of the term “buying power” has to do with the ability of a consumer to use liquid assets to purchase the desired quantity and quality of products that will meet current wants and needs. Manufacturers make it a point to analyze the buying power of various sectors of the consumer market in order to design goods and services that are a good match with the average amount of disposable income that consumers in a given economic bracket can be expected to use buying products. A correct understanding of the value of money, as it applies to a specific consumer group, can help a manufacturer to design products that will meet the expe
