Do most firms take away buying power when you place a buy/sell stop order or when the order is actually executed? Lets say a stock is trading in a range and I want to go short if it breaks bellow the range or go long if it breaks above the range. I want to put in a buy stop and a sell stop at the same time and let it play out which one gets triggered. Now if i was buying $10,000 worth of shares, would I need $20,000 in buying power to place the 2 stops or will they only take away from buying power when the one of the stops is hit and I enter the trade? Right now i would need to have enough BP to cover both the stops. Is this true for everyone?
definitely not everyone. some make you agree to send funds within three days when you click the buy button if you don't have funds in the account. others don't even do that.