diff --git a/services/trading/engine.py b/services/trading/engine.py
index 63bfea2..7856b39 100644
--- a/services/trading/engine.py
+++ b/services/trading/engine.py
@@ -551,13 +551,41 @@ class TradingEngine:
         except Exception:
             logger.debug("Could not load circuit breaker state — using inactive")
 
-        # Build portfolio state with defaults
-        # Default initial capital for paper trading — overridden by broker sync
+        # Build portfolio state from broker account (real buying power)
         initial_capital = 100000.0
+        try:
+            acct_row = await self.pool.fetchrow(
+                "SELECT config FROM broker_accounts WHERE active = TRUE ORDER BY created_at DESC LIMIT 1"
+            )
+            if acct_row and acct_row["config"]:
+                cfg = acct_row["config"] if isinstance(acct_row["config"], dict) else {}
+                initial_capital = float(cfg.get("portfolio_value", cfg.get("cash", 100000.0)))
+        except Exception:
+            logger.debug("Could not load broker account — using default capital")
+
+        # Load actual positions to calculate invested amount
+        invested = 0.0
+        open_count = 0
+        try:
+            pos_rows = await self.pool.fetch(
+                "SELECT quantity, avg_entry_price FROM positions WHERE quantity > 0"
+            )
+            for pr in pos_rows:
+                invested += float(pr["quantity"]) * float(pr["avg_entry_price"])
+                open_count += 1
+        except Exception:
+            logger.debug("Could not load positions — assuming no invested capital")
+
+        available = max(0.0, initial_capital - reserve_balance - invested)
         self.portfolio_state = PortfolioState(
             reserve_pool=reserve_balance,
-            active_pool=max(0.0, initial_capital - reserve_balance),
+            active_pool=available,
             total_value=initial_capital,
+            open_position_count=open_count,
+        )
+        logger.info(
+            "Portfolio state: total=$%.2f invested=$%.2f available=$%.2f reserve=$%.2f positions=%d",
+            initial_capital, invested, available, reserve_balance, open_count,
         )
 
     async def _decision_loop(self) -> None:
@@ -672,6 +700,12 @@ class TradingEngine:
 
                         # For "act" decisions: push order to broker queue
                         if decision.decision == "act":
+                            # Deduct from active pool immediately to prevent over-allocation
+                            order_cost = (decision.computed_share_quantity or 0) * rec.get("current_price", 0)
+                            if self.portfolio_state and order_cost > 0:
+                                self.portfolio_state.active_pool = max(0.0, self.portfolio_state.active_pool - order_cost)
+                                self.portfolio_state.open_position_count += 1
+
                             order_job = {
                                 "trading_decision_id": decision.id,
                                 "ticker": decision.ticker,
@@ -684,9 +718,11 @@ class TradingEngine:
                                 broker_queue = queue_key(QUEUE_BROKER)
                                 await self.redis.rpush(broker_queue, json.dumps(order_job))
                                 logger.info(
-                                    "Pushed order for %s (%d shares) to broker queue",
+                                    "Pushed order for %s (%d shares, $%.2f) to broker queue — remaining pool: $%.2f",
                                     decision.ticker,
                                     decision.computed_share_quantity or 0,
+                                    order_cost,
+                                    self.portfolio_state.active_pool if self.portfolio_state else 0,
                                 )
 
                         # Persist decision
@@ -816,6 +852,20 @@ class TradingEngine:
                 if self.portfolio_state is None:
                     continue
 
+                # Sync active_pool with actual positions from DB
+                try:
+                    if self.pool is not None:
+                        pos_rows = await self.pool.fetch(
+                            "SELECT quantity, avg_entry_price FROM positions WHERE quantity > 0"
+                        )
+                        invested = sum(float(r["quantity"]) * float(r["avg_entry_price"]) for r in pos_rows)
+                        open_count = len(pos_rows)
+                        available = max(0.0, self.portfolio_state.total_value - self.portfolio_state.reserve_pool - invested)
+                        self.portfolio_state.active_pool = available
+                        self.portfolio_state.open_position_count = open_count
+                except Exception:
+                    logger.debug("Could not sync positions for portfolio state")
+
                 # Update portfolio heat and metrics from current positions
                 try:
                     metrics = self.performance_computer.compute_metrics(