Brian I’m wondering if you can help me understand a good faith violation in a cash account. I figure either the cash is there or it’s not. I guess I sold a position before it settled. Td can’t seem to explain how to actually avoid it. I don’t want to get restricted in my account.
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The rule is T+2. Once you sell a stock, you have to wait 2 days until you can use that same money again to purchase a new one.
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I get restricted all the time lol... I got a GFV on SOS today 😂
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Official
Hi Brian, we picked up your tweet and can understand why this would be concerning. Please feel free to send us a DM if you would like to chat further and see how we can help :) Happy trading! ^GH bit.ly/2oJbWbn
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I learned from experience. Lol. Example: sell stock A on Mon. Buy stock B on Mon with the unsettled cash from sale of stock A. You can't sell stock B until Wed. The cash from selling A settles on Wed. (T+2). Trade plus 2 days. You sell stock B Mon or Tues= GFV.