when can I sell stock bought with unsettled cash?
when can I sell stock bought with unsettled cash?
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Dev1 · External communityPost link
External question — Personal Finance Stack Exchange
Author: Dev1
Original post: https://money.stackexchange.com/questions/127595
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I'm a little fuzzy on what triggers a good-faith violation when trading with unsettled funds. My full-service broker periodically sells, then buys, stock in my account in a single day, but the stocks are held for weeks if not months.
This question is about shorter-term trading in my self-directed account with a retail brokerage.
It's a cash account. I am in the US, as is the broker.
Here's what I did today. (The amounts have been simplified.)
started the day with $2000 cash available to trade, of which $1000 is settled. The rest will settle tomorrow.
also own some ABC stock that was bought several weeks ago.
bought $1000 worth of XYZ
sold $1000 worth of ABC
bought $1000 worth of XYZ
bought $1000 worth of XYZ
sold one of the lots of XYZ (FIFO, which is the only choice I have)
I know the XYZ sale will be OK because I bought it with settled cash, but when can I sell the other lots of XYZ without getting a trading violation?
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Dev1 Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/127595 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm a little fuzzy on what triggers a good-faith violation when trading with unsettled funds. My full-service broker periodically sells, then buys, stock in my account in a single day, but the stocks are held for weeks if not months. This question is about shorter-term trading in my self-directed account with a retail brokerage. It's a cash account. I am in the US, as is the broker. Here's what I did today. (The amounts have been simplified.) started the day with $2000 cash available to trade, of which $1000 is settled. The rest will settle tomorrow. also own some ABC stock that was bought several weeks ago. bought $1000 worth of XYZ sold $1000 worth of ABC bought $1000 worth of XYZ bought $1000 worth of XYZ sold one of the lots of XYZ (FIFO, which is the only choice I have) I know the XYZ sale will be OK because I bought it with settled cash, but when can I sell the other lots of XYZ without getting a trading violation?
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