I have a question about free riding?
Follow this scenario for someone using Scottrade and does not have a margin account with $5000 in their account:
1) Buys stock at 9:40am ($5000)
2) Sells stock at 9:42am ($4500, loss of $500)
3) Buys stock at 9:46am (puts all $4500 in) CHARGED A FREE RIDE
4) ?
If your broker freezes your account, will you be able to sell your shares at 4? Or will you have to wait 3 days for funds to settle before you can sell those shares?
Convert to a margin account and don’t worry about it.
London Underground – Victoria Line 1967 stock ride (Oxford Circus – Green park)