Unsettled funds/Reg T question...

Posted by corbinb2 on December 17, 2008 (11:33PM)

I could just as easily ask TK support directly but like to post questions here so everyone can benefit.

First an example...

I have a cash account and I buy XYZ and also buy ABC on the same day with free and clear funds. I then sell XYZ the same day and have unsettled funds in my account. On the next day I sell ABC which adds to my unsettled funds total. On the same day as the ABC sale I buy DEF understanding that I have to hold until the funds with which it was purchased need to settle. (T+3)

Could I safely sell the DEF stock on the T+3 date of the XYZ sale or would I need to wait until the T+3 date of the ABC sale? In essence is the stock purchase strictly tied to the preceding sale or is it tied to available buying power and/or unsettled funds?

Thanks for your help!

Posted by incubus on December 17, 2008 (11:59PM)

Unless TK says different, I believe unsettled funds from your first sell order would be used.

You really need to verify this by giving tham a call, I'm no pro, just a fellow trader.

You must Log In to post to this forum.

Not a member? Register Now to …

  • See what other traders are doing
  • Make your own trades public
  • Share your thoughts on a trade
  • Join or start a group
  • Connect with like-minded traders