But If you sell on a Monday it settles on Thursday".....
If I sell on Monday, I will buy at the close on Wednesday. When
I do I get a message that I am buying with unsettled funds, but I
don't care because they will settle overnight and be settled at
Thursday's open, so that I can sell if need be. So in a way, it is
not 72 hours but two full trading days plus what is left after I
sold on Monday. I don't see the need to actually wait until
Thursday. However, buying before settlement I would only do in the
last 5 minutes of a trading day because some big moves can happen
at the close and once I buy, I am holding overnight.
if you have a certain number of reg T violations...if not, then
you can be on easy street. If they try to restrict you without you
pulling violations (they never have with me) then time to change
brokers.
So Called 72 hour settlement period
IRA and 3 day buy/sell rule
Posted by dougmil on 5th of May 2011 at 12:13 pm
But If you sell on a Monday it settles on Thursday".....
If I sell on Monday, I will buy at the close on Wednesday. When I do I get a message that I am buying with unsettled funds, but I don't care because they will settle overnight and be settled at Thursday's open, so that I can sell if need be. So in a way, it is not 72 hours but two full trading days plus what is left after I sold on Monday. I don't see the need to actually wait until Thursday. However, buying before settlement I would only do in the last 5 minutes of a trading day because some big moves can happen at the close and once I buy, I am holding overnight.
Doug Milliken
possible restriction
Posted by rgaiti on 5th of May 2011 at 02:39 pm
some brokerage houses (eg Merrill) may restrict your account if you buy with unsettled fund too often (3x in 90 dyas) be aware
They MUST restrict
Posted by perthx on 5th of May 2011 at 02:43 pm
if you have a certain number of reg T violations...if not, then you can be on easy street. If they try to restrict you without you pulling violations (they never have with me) then time to change brokers.
trade date + 3 days
Posted by rslph on 5th of May 2011 at 12:29 pm
Your funds are settled overnight Wed - Thurs and are clear on Thurs.
Ralph