FirstTimeInTrade / what is BUYING POWER?

J

jk90029

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.
 
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