Replies to post #11333 on Ophir Resources Co. (SUFF)

[gail]

now i have noticed something they cant seem to fix.. is when i have a stock for sale at market (im willing to get nothing for it in other words) it shows that i have extra cash equalling that amount..

so, i used it one day to buy another stock and they showed me negative money that i had to pay back when i sold another stock.

that only happens on market sell orders.. so, now i know not to use that money.

[Burntwood]

Tbrod. You money or account balance if under 25,000 is subject to clearing restrictions. This is also known as T+3 (Trade date plus 3 more trading days).

Here is where it can get tricky now.

If your money balance lets say 500 dollars has been inside your brokers account for over 3 days than "technically" your 500 HAS been settled. So if you buy INCL with the 500 on monday than you could immediately sell it 1 hour later if you wish, but KNOW those funds are now NOT settled.

You have two options now at this point. Wait the 3 days for your funds to settle, OR buy another security but know you will be restricted from selling that 2ND security untill the sale of INCL on Monday settled. This is bad for one reason.. buying this second security means you are trapping yourself from selling it if big profits did happen. If you sold it early you will be flagged by your broker under the free trading rule.

But Tbrod here is where you can flaw the system, "sorta".
Imagine last week you had bought 1000 dollars of INCL on Monday, and its been a week - over T+3 - so that 1000 dollars is settled. Now instead of spending that 500 on INCL - like above - you instead bought XXXX for 500 for a quick flip. You bought XXXX this Monday and technically this doesnt settle till Thursday. But Monday afternoon you made 100 bucks profit off of XXXX... so you sold Monday... meaning this now 600 doesnt settle till Thursday. So technically you are suppose to wait till Thursday for the funds to settle. However, you can buy the second security and be trapped in till Thursday like I mentioned above... OR here is where you flaw the system "sorta"

So since you had previously purchased 1000 worth of INCL that prior week all those shares are settled. So with the 600 dollars that doesnt settle till Thursday you buy into INCL for a GRAND total of 1600 dollars worth. (1000 settled and the new 600 that settles on Thursday). On TUESDAY INCL shoots up 200% and here is where you can sell the 600 dollars worth of shares since technically you have 1000 dollars worth that has already settled.

You can buy into and sell and buy into the same stocks without the T+3 if you closely keep track of what has settled in that security and what has not. Its a fine line your gambling on, but its also nicer than loosing out on the 200% possible gain.

Hope this helped. BW.