Dear Today, first experience in NYSE, with recent open IB account. Suppose I have cash of $10K, what is buying power of $40K shown in the IB screen? My guess that I can order as much as $40K total. (say 4 pieces of $10k buy order) 1) If all is executed, does it mean I used credit (loan that I should pay interest?) 2) Or if all 4 are executed then I have pay 75% in the settlement day(roughly 3 days later) 3) I heard that "pattern" trader (maybe $25K cash or more) can pay proof of purchase today and pay the rest in the settlement day (three days later). Also I can pay THE REST, with use (swap?) of the money that I sell today. Appreciate if you give any link explaining this rule precisely, for me. Thanks for reading my short English. -Jay
I prefer, in case my buy order (less than current price) is executed, that I pay proof of purchase (roughly 25% or 30%?) today and expected the rest (to pay the full amount of purchase) 3 days later(75% or 70%). Also I do NOT want to pay any kind of INTEREST for any kind of LOAN.