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[Music] foreign portfolio management understanding buying power you ready for this one I am sir all right so BP buying power reduction refers to the capital requirement that the trader must maintain when holding certain positions in their brokerage account naked option strategies may require higher capital or buying power to cover the potential losses in case the trade moves against them its essential to fully understand the risk associated with trading options and buying power is a good measure of risk um this is not a segment today that will include uh futures or Futures options but one of the things that we always say its important to understand this if you understand buying power and you see what it takes to um what you have to put up to make a trade thats essentially the number that were willing to risk it all on you essentially saying that that you know what thats a number that were comfortable with so you have to be comfortable with it which means youre a buck which means