Ive read that settlement is 3 days. If I buy securities from a cash account, I know it executes when the buy is accepted, and usually the cash/securities is shown in my account (ex.shows less cash, more securities) that next day/night. Is that considered the settlement? Thats 1 day, not 3? Am I missing something? Soon I will upgrade this particular cash account to margain.
Posted by Machiavelli on :
If your not a experienced trader I would not upgrade to a Margin account.. stick to Cash... settlement is when you sell not buy to me at least... when you have cash "available" again to make a new trade... anyways with Choicetrade i dont have that 3 day problem... i can't speak about other brokerages..
Posted by newpenny on :
my experience with a cash account was this I could sell and would see the money there available immed for reinvestment the same day but the new stock I bought with the money now needed 3 days to settle so I could not sell that stock for 3 days. I now have a margin account so I don't have to wait the 3 days for it to settle when I buy with unsettled proceeds from the sale of another stockI can sell the that stock the next day
Posted by Machiavelli on :
cash is better simply because if trades go against you ... you won't get a Margin Call from your broker... and anyways my experiences with Choicetrade are different and positive ...