Final answer:
If a day trader exceeds her buying power limitations, she may face consequences such as margin calls and liquidation of positions.
Step-by-step explanation:
If a day trader exceeds her buying power limitations, she will likely face consequences. Buying power is the amount of capital or funds available to a trader to make trades. When a trader exceeds their buying power, it means they have spent more than they have available, resulting in a negative balance.
Exceeding buying power can lead to several outcomes. Firstly, the trader may receive a margin call from their broker, requiring them to deposit additional funds to cover the negative balance. If the trader fails to meet the margin call, the broker may liquidate the trader's positions to recover the funds. Secondly, the trader may also face restrictions or penalties from the broker, such as temporary trading suspensions or account closures.
It is crucial for day traders to manage their buying power effectively and stay within their limitations to avoid these negative outcomes.