Home/FAQ/Trade Motifs/When placing an order, why do I need to reduce the dollar amount of my trade when I try to use 100% of my buying power?

When placing an order, why do I need to reduce the dollar amount of my trade when I try to use 100% of my buying power?

To accommodate potential price fluctuations when placing an order, a “buffer” is put in place to help reduce the possibility that you spend more than your available buying power. A 2% buffer is required for real-time trades, while a 5% buffer is required for next market open trades.