# Paper balance acts different some times

**URL:** <https://forum.alpaca.markets/t/paper-balance-acts-different-some-times/4350>\
**Category:** Random\
**Created:** [February 8, 2021, 5:30pm UTC](https://forum.alpaca.markets/t/paper-balance-acts-different-some-times/4350 "2021-02-08T17:30:42Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![tvdevelop1](https://avatars.discourse-cdn.com/v4/letter/t/ba9def/32.png) [@tvdevelop1](https://forum.alpaca.markets/u/tvdevelop1)\
**Post date:** [February 8, 2021, 5:30pm UTC](https://forum.alpaca.markets/t/paper-balance-acts-different-some-times/4350/1 "2021-02-08T17:30:43Z")

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Hi  
I observed that part of my paper account buying power balance vanishes once I liquidate or sell off majority of my assets in the paper account.  
Here is the snap shot, can some one please point to be me whats happening, given this is a paper account and all the orders have been filled. The current Day Trading Buying Power expected should be 4xEquity = 416334.64. Note the Cash for Trading is 104015.66, but buying power is not 4x anymore. ?

 ![Screenshot from 2021-02-08 11-18-54](https://us1.discourse-cdn.com/flex020/uploads/alp/original/2X/9/9e7336e49ffb3c334fe7e750211200363a31fe54.png)

Usage: I was thinking of using buying power for long/short transactions like below, where CAPITAL is indicated as amount I am interested to trade with,

buypower = float(api.get\_account().buying\_power) - CAPITAL\*(int(api.get\_account().multiplier)-1)

This becomes self limiting as the transactions are made buypower is reduced and I dont have to worry about Margin calls. This is breaking as buypower in alpaca is not behaving as I was expecting  
Let me know the correct approach here.  
Thanks

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**Author:** ![Dan\_Whitnable\_Alpaca](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.alpaca.markets/dan_whitnable_alpaca/32/1658_2.png) [@Dan\_Whitnable\_Alpaca](https://forum.alpaca.markets/u/Dan_Whitnable_Alpaca)\
**Post date:** [February 8, 2021, 8:41pm UTC](https://forum.alpaca.markets/t/paper-balance-acts-different-some-times/4350/2 "2021-02-08T20:41:25Z")

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“Day Trade Buying Power” is calculated each day based upon the previous end-of-day “Excess Margin” times 4. In this case the last close Excess Margin was $73,466.68. Therefore, the current Day Trading Buying Power will be 4 times that or $293,866.72. It will never go above that for the entire day. Tomorrow it will get reset based upon todays excess margin. There is an SEC memo which explains a it more [here](https://www.sec.gov/files/daytrading.pdf).

What do you mean “_where CAPITAL is indicated as amount I am interested to trade with_”? Is that for a specific trade (ie I want to buy $5000 of TSLA do I have enough buying power)? or is it the amount you want your portfolio to trade (ie I have $10000 in equity in the account I want to use 1.5 leverage so my trading capital is $15,000).

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**Author:** ![tvdevelop1](https://avatars.discourse-cdn.com/v4/letter/t/ba9def/32.png) [@tvdevelop1](https://forum.alpaca.markets/u/tvdevelop1)\
**Post date:** [February 10, 2021, 3:38am UTC](https://forum.alpaca.markets/t/paper-balance-acts-different-some-times/4350/3 "2021-02-10T03:38:13Z")

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Dan,  
Thanks a lot, i figured when i went on this link ,

> **[User Protections - Documentation | Alpaca](https://alpaca.markets/docs/trading-on-alpaca/user-protections/)**
>
> Alpaca API lets you build and trade with real-time market data for free.

CAPITAL(local variable) limits how much buying power i want to use, and can be used both for specific trade as well as portfolio trade with leverage like you mentioned. 🙂