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Stock Trading - Account Settling Period?

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  • Stock Trading - Account Settling Period?


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Answer #1 | 02/01 2014 11:55
Yes. http://www.sec.gov/answers/tplus3.htm
Answer #2 | 02/01 2014 12:11
With a cash account you can use the funds from a sale right away to purchase another, but you can't sell that second stock until the first finally clears. This is the T+3 rule. It doesn't matter if the broker is fast in updating your account balance or not, this rule must be followed. And with a cash account you also can't make more than 3 day trades within a week's period (buy/sell same stock in one day), or else you'll be flagged as a pattern day trader, and have your account privileges limited. You need over $25,000 in your cash account to be allowed to day trade without worry about how many times you do it.

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