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Re: Invester996 post# 14768

Wednesday, 10/19/2016 2:52:43 PM

Wednesday, October 19, 2016 2:52:43 PM

Post# of 27685
What you did was buy these extra 150 shares with the unsettled funds from what you sold (when you sell a stock it takes 3 business days to settle the transaction). By regulations of cash accounts, when you buy stock with unsettled funds you are supposed to hold what you purchased until the original trade (the sale of whatever you previously owned) settles (3 business days).

Your options are:

1. hold your 150 shares (the 450 you can do whatever you want with) until the original trades settles and then you can sell them or,

2. sell now while the unsettled funds are still not settled yet and you will be committing what they call a free ride violation. No $ penalty. But Scottrade will place a hold on your account for 90 days where you can only trade with settled funds (during the 90 day period you will not have ability to purchase stocks with unsettled funds like you did).

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