Trading Stock – Whats wrong with this?
Ok, I sold stock at a profit today for roughly a thousand dollars. Now I want to buy 600 dollars of stock tomaro, however I get this message.
You are using unsettled funds for this purchase. If you sell this purchase prior to the settlement date of the funding sale, without additional funds being deposited, it will be considered a free ride under Federal Reserve Regulation T. Please review the Trading in Cash Accounts information available in the Policies & Disclosures section of the web site.
These are the stocks if it matters
Stock sold- HEV
Stock buying- VLNC
I use scottrade
If you have over $2,000 in the account, consider applying for a margin account. I use Scottrade as well, they will simply issue you a new account number if you do so. While you do not need to use the margin, you can eliminate the settlement wait period and can immediately put the proceeds to work in a new investment. However, if you do not, there is not much you can do about it, other than wait out the settlement period. However, be aware that you cannot daytrade (enter and exit a position in the same day) unless your account value is above $25,000. Just some thoughts, I hope they help.
Best of luck!
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