What are the differences between Robinhood Buying Power and Withdrawable Cash?
In Robinhood, Buying Power and Withdrawable Cash are two distinct components of your account balance, each serving specific purposes: Robinhood Buying Power : This represents the total funds available for purchasing securities such as stocks, options, or cryptocurrencies. It includes: Settled Funds : Cash from deposits or sales that have completed the settlement process. Unsettled Funds : Proceeds from recent sales still undergoing the settlement period. Margin (if applicable) : Additional funds are available if you have a margin account. Robinhood Withdrawable Cash : This is the portion of your balance that you can transfer out of Robinhood to your bank account . It comprises only settled funds, excluding any unsettled funds or margin. Key Differences : Settlement Period : When you sell securities, the proceeds enter a settlement period (typically two business days for stocks). During this time, these funds are part of your buying power but aren't yet withdrawable. Margin Accou...