posted
I'm pretty new at this but seem to ahead of the game so far, thanks to some in here. But I see some say the have to wait for funds to settle. When I make a sale and then make a quik purchase...it always tells me i'm using unsettled funds. Does this affect anything and how long does one have to wait? And do I have to wait and why.
Thanks all..
lilpennypincher
posted
I guess you are trading in a cash account....
Let's say....You buy a stock on monday and sell it tuesday........you can buy another stock with that money BUT......YOU MUST WAIT THREE TRADING DAYS for those funds to settle before you can sell it. If you do this (use unsettled funds) too many times they will first, give you a warning and after that.....Suspend your account.
Now, If you have a margin account....you can buy and sell a stock the same day (daytrade) 3 times over a five day (trading day) period........and you also can buy a stock on Monday, sell it tuesday and not wait to have your funds settle........and can do this every day if you wish....(buy one day and sell the next)
Good luck to you.
I hope I explained this well enough for you. I'm on my second glass of wine. LOL
Hiker
posted
Thanks... I sold and re-bought 2 - 3 times in a day with a cash account and they haven't said anything yet. And yes..it's a cash account
Thanks for the tip...
MoneyMoneyMoney
posted
They will. The same thing happened to me throught Fidelity. If you sell the stock on unsettled funds then you have committed a trading violation and they will let you know.
SuperSniper00
posted
Are there any serious repercutions you can face other than an account suspension?
tippytwo
posted
quote:Originally posted by SuperSniper00: Are there any serious repercutions you can face other than an account suspension?
If you do it enough, maybe an account expulsion from the firm.
I haven't heard of anything REALLY bad happening with this...
ShadowLurker
posted
Scottrade says you have to put the cash in ASAP if you use unsettled funds and sell before they settle. You need $2,000 in your account, cash and/or equities to get a margin account. Not sure about the other services.
posted