SPOOZ Inc (SPZI)

[Imperial Whazoo]

In the old TD Waterhoue, if I sold something today, I was frozen out for 3 days. In some other brokers (I use another to trade tick-by-tick), even non-day trading accounts can use the proceeds if the stock you are selling was settled already. The tie-back is to the settlement date of what you are selling. Apparently, it is becoming more common that this is the rule of thumb, but the old TD Waterhouse version of it was BAD. Now, I hear that what you describe at Scottrade is more common.

Say I bought XYZ today, it would settle Monday AM. If I sold it Friday, according to the old way at TDW, I was frozen till next Wednesday AM (three after sale). As I understand it, the new rules free up my money for use on the original settle date (Monday), not the third day after the sale (wed.).

But.... and be careful here.... call your broker because, if you get it wrong, you can not trade on-line for 90 days. Bad move, especially if a single phone call (and a 20 minute wait on hold LOL) could have gotten it laid out for you as regards how your broker does it. So look before you leap.

Imperial Whazoo