Can someone explain this to me, and its implications?
WARNING CR72: A buy order was placed for this security using unsettled funds. Selling this security before these funds settle may result in a Free Ride. Please review Changes To Cash Accounts, located on the Message Center, or contact your local branch for further assistance.
Thanks!
Posted by glassman on :
you have a CASH acct.
it takes three biz days to settle funds from a SELL..
if you use those funds to BUY, you cannot SELL untill the funds are settled from th eprevious SELL...
some brokers don't even allow you access to YOUR money 'till it settles...
it's WRONG, but it was initiated to"protect" newbies from themselves....
even a check is instantly withdrawn anymore, if you get a margin acct, they won't bother about settled funds..but margin has it's own pitfalls...