# Money in the account ≠ Usable money? What is the "buying power" in stock trading

Many beginners do not know that the balance displayed in your account and the money that can actually be used for trading are two different things. The actual funds that can be used to buy stocks, cryptocurrencies, and options are called **Buying Power**.

The most basic algorithm is very simple: the amount of cash in a regular account is the buying power. For example, if you have 20000 USD lying in your account, you can use 20000 USD for trading.

But there is a catch here: **the margin account can double your buying power**. The same 20000 can be used as 50000 in a margin account (automatically leveraging you). This is a double-edged sword for those eager to bottom-fish—earning more but also losing more.

Why should you pay attention to this? Because it directly determines how much room you have for trading. Without buying power, you cannot execute any operations; having more balance in your account is useless. Expanding your buying power is simple; just add more money to your account.

In summary: **Buying power = the money you can actually trade**, whether it's stocks or in the crypto space.