Conversion Solutions Holdings (fka CSHD)

[Thirsty Tiger]

It is the settlement day of your SELL that counts. Your money from previous sells is not “free” until the T+3 (trade+3) settlement day. The following scenario holds for a cash account.

You buy a stock in the morning with money free of any earlier settlement restriction. You can then sell that stock anytime you want even the same day. If you sell the same day and you then within 3 days buy again using the money from the sell, you can not sell that second stock before the settlement day of the first sell. If you do sell before then, your account will be placed on a 90 day restriction.

When an account is placed on a 90-day restriction, it means you must have full settled funds in your account prior to placing your trade.

Since this rule is imposed by the SEC, this rule is the same for all brokers. Hefty fines if violated.

The 3 day settlement has absolutely nothing to do with wether you want to have cash sent to you or not. The rule basically states that you cannot have more than one trade using the same money waiting for settlement.

You can however escape most of this by opening a margin account

TT