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Unsettled funds question
I have a question about unsettled funds. Say you own 10 shares of stocks ABC, ABB, ACC, AAA, and BBB All worth 10$. You sell stock ABC on Monday, and buy 10 shares of CCC with the unsettled proceeds of AAA. On Tuesday you sell ABB and buy CAA with the unsettled proceeds of ABB. When your funds from ABC clear, can you sell CAA with the funds covered from ABC, even though the funds from ABB that were used to buy it weren't cleared? Tried to explain it best I could thanks for any help.
019bob19 said: ↑
I have a question about unsettled funds. Say you own 10 shares of stocks ABC, ABB, ACC, AAA, and BBB All worth 10$. You sell stock ABC on Monday, and buy 10 shares of CCC with the unsettled proceeds of AAA. On Tuesday you sell ABB and buy CAA with the unsettled proceeds of ABB. When your funds from ABC clear, can you sell CAA with the funds covered from ABC, even though the funds from ABB that were used to buy it weren't cleared? Tried to explain it best I could thanks for any help.
I ment buy CCC with proceeds from ABC not AAA sorry.
If you have a cash account, then you're freeriding, which is illegal. See link below.
http://www.sec.gov/answers/freeride.htm
