Td Ameritrade: Option Buying Power

OBP is strictly equal to your settled cash . You cannot use margin or leverage; you must pay the full premium upfront for any option purchase.

OBP is calculated based on the projected maximum loss of your total portfolio rather than individual positions. This often allows for significantly higher leverage (up to 6:1 or more) for advanced strategies. Common Strategy Requirements option buying power td ameritrade

When you place a trade, your OBP is reduced by the "Buying Power Effect" (BPE): What Is Options Buying Power? - tastylive OBP is strictly equal to your settled cash

is the total capital currently available in your account to open new options positions. It differs from your total cash balance because it accounts for margin requirements, open orders, and funds that haven't fully settled yet. This often allows for significantly higher leverage (up

Your available OBP depends heavily on your account classification:

OBP is generally your Margin Excess —the equity available after satisfying initial margin requirements for your existing positions.

With the transition of accounts from TD Ameritrade to , OBP is now managed through the Schwab platform, though the core thinkorswim engine still handles the underlying calculations. Core Calculations by Account Type