If you received a notification that your buying power limit was hit in Options Auto Trader, it means that you’ve reached the maximum amount of funds available for trading. This can happen for several reasons. In this article, we'll explore the different scenarios that could cause your buying power limit to be hit and how to resolve them.
The most common reason for hitting the buying power limit is that you are trying to trade with more money than you have available in your account.
To check this:
Log into your brokerage account that’s connected to Options Auto Trader.
Review your current account buying power to see if you have enough funds available to place the trade.
If your account doesn’t have enough buying power, you will need to deposit more funds or adjust the size of your trades to fit within your current balance.
Another reason you might hit the buying power limit is that the buying power allocation limit you set for your bot has been reached or would be exceeded if a new trade is placed. Each bot in Options Auto Trader has its own buying power allocation limit to prevent it from using more funds than you specify.
To fix this:
Go to the Auto Trader Settings by clicking the gear icon in the top right corner of the Auto Trader page.
Increase the Buying Power Allocation Limit for your bot if you want to allow it to use more of your account's available funds for trading.
Save the changes and ensure the new limit is appropriate for your trading strategy.
If you’re trading futures, you will only be able to use 80% of your buying power allocation. This limit is in place to protect you against span margin risk, which is specific to futures trading.
If you’re trading futures and wondering why you can’t use the full buying power allocation, this is likely the reason. To avoid hitting the limit, ensure your buying power allocation is set with this 80% limit in mind.
If you have VIX-based buying power enabled, this will further limit the amount of buying power allocation that your bot can use. The VIX (Volatility Index) can affect market conditions, and limiting your buying power during times of high volatility is a protective measure.
To review or adjust this setting:
Go to your Auto Trader Settings.
Look for the VIX-based Buying Power setting.
If necessary, you can disable this feature, but keep in mind that this may expose you to more risk during volatile market conditions.
Once you’ve identified why your buying power limit was hit, you can take action to resolve the issue:
Deposit more funds into your brokerage account if your account buying power is low.
Increase the buying power allocation limit for your bot if you want it to use more of your available funds.
Be mindful of futures trading limits and VIX-based buying power restrictions, and adjust your strategy accordingly.
Hitting your buying power limit in Options Auto Trader is a safeguard to prevent you from over-leveraging your trades. By understanding the different factors that influence buying power, such as account balance, bot allocation limits, futures trading restrictions, and VIX-based settings, you can make the necessary adjustments to ensure smooth trading.
If you have any questions or need further assistance, feel free to reach out to our support team.
TERMS OF SERVICE: Please be aware that continued use of the Options Auto Trader is subject to our Terms Of Service. If you have any questions or wish to review these terms, feel free to visit the website.
