Instant Buying Power
Instant buying power lets you place trades right after a deposit — before it fully settles — so you don't have to wait 5 business days to start investing.
How much instant buying power do you get?
- New accounts (less than 30 days old, or with limited trading history): up to $1,000 in instant buying power on your first deposit.
- Established accounts: the lower of — your deposit amount, or 50% of your total account assets minus any unsettled cash.
If a transfer exceeds your instant buying power limit, only the amount up to that limit is available immediately; the remainder becomes available once the deposit settles.
Restrictions on instant buying power
- You can trade immediately with instant buying power, but you cannot withdraw the deposited funds until they fully settle (typically 5 business days) — even if you sell the positions bought with that buying power. See Withdrawing Funds.
- Eligibility is decided per deposit by an automated system check and can't be manually overridden. A specific deposit may not qualify if:
- The transfer was flagged by a system check
- Your deposit history includes reversed or canceled transfers
- You have a limited deposit history
- Your account has had negative balances or deficits
- A history of successful transfers makes future deposits more likely to qualify; a history of reversals makes it less likely.
- Light Horse may suspend instant buying power for equities, crypto, or options trades during periods of high volatility, at its discretion. If that happens, wait for the deposit to settle, or fund the trade via Wire Transfer instead.
- When placing a trade, make sure your deposit covers both the trade amount and any instant buying power already used, to avoid running short on buying power.
If a deposit is reversed after you've traded
- Light Horse may liquidate the resulting positions to recover the funds, and a $30 return fee applies.
- The resulting deficit is due immediately — cover it with a new deposit or by closing positions as soon as possible.
- You may be asked to cover a deficit even without a formal notice; failing to do so can result in permanently losing instant buying power access.
- Once a deficit is resolved, future deposits may again qualify for instant buying power.
Frequently asked questions
What happens if the deposit is returned?
If your bank returns the deposit after you've already used the instant buying power to trade, Light Horse may liquidate the positions to recover the funds. A $30 return fee also applies.
Can I withdraw the funds that I just deposited?
No. Deposited funds must settle (typically 5 business days) before you can withdraw them. You can trade with instant buying power in the meantime.
How much instant buying power do new accounts get?
Up to $1,000 on the first deposit for accounts less than 30 days old or with limited trading history.
Why wasn't my deposit granted instant buying power?
Eligibility is checked per deposit. Common reasons a deposit doesn't qualify: a system-check flag, a history of reversed/canceled transfers, limited deposit history, or a prior negative balance/deficit.