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Strategies & Market Trends : Z PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (1316)	1/4/1998 1:27:00 PM
From: Ron McKinnon	Read Replies (1) \| Respond to of 11568

Dan, in a cash account, such as an IRA, unreaized gains (ie total equity) has no impact on buying power In a cash account you must have the cash available to fund a new buy, therefore cash balance = buying power. ie; Buying power = Beginning balance - Purchases at cost + Gains realized = cash balance = buying power In addition with most brokers you are limited to buying no more than the cash available at the beginning of the day, this greatly restricts day flips (this comes under the SEC's "free riding" rule")