GrowLife Inc (PHOT)

[Mkoch3]

It's a cash credit, not a debit. The good faith is allowing that credit to be used to purchase more securities. If you then sell the newly purchased securities from the credit, then it's a violation of good faith- that is- you won't be and sell the security so frequently before the money is actually settled. You can also look at it like when you buy with settled funds and sell with settled funds, you technically own the shares so it's okay. But it takes 3 days for the funds to settle. They allow you to buy more securities with that credit in good faith so that you don't sell before the settlement date.