How long should I wait after selling a stock?
It seems that the longer your a TradeKing customer and the more trades you place the unsettled funds thing seems to go away. As I began placing more trades I noticed that my funds from sales clear the same day or the next day. I assume once they figure out your trading habits they put more trust upon your account. It's the only thing I can think of.
Spence is right however that if your showing unsettled funds, you can buy stock with it, you just can't resell it until those funds clear.
Good Afternoon Spence and RogerLee:
I just want to clarify that trade settlement is governed by Regulation T of the Securites and Exchange Act of 1934, this regulation affects all brokerage firms in the U.S. This is not a policy to which TradeKing can make any exceptions to as you build a trading history with us as RogerLee suggests. Spence is correct that if you do use unsettled funds to make a purchase of another stock in a cash account then you have to hold that stock through settlement. Stock trades settle 3 business days after the trade date under Reg T, Options trades settle 1 business day after the trade date under Reg T. If you have a margin account with $2000 or more (the Federal Margin Minimum) you can trade with unsettled funds without the requirement to hold the new purchase through settlement. You would need to be aware of SEC Daytrading rules for accounts with less then $25,000, here is a link to our Daytrading Disclosure
Please note that margin is not allowed in IRA or Custodial accounts under Federal regulations.
Neal Atkins - Supervisor E-Communications - TradeKing.
Does this rule only apply to stocks and not to options? I've been trading options exclusively for several months and maybe thats why I haven't been running into unsettled funds? I don't really pay attention to it that closely.