I just opened an account with ameritrade and was caught off guard with this whole unsettled funds and regulation T . so I started searching and found out that margin account dont have this problem. I dont want to trade on margin because I do not want to pay any interest. will I be paying interest if I buy and sell stocks with unsettled funds in a margin acount before the 3 day settlement period? I hope thats not too confusing thanks alot.
heres what I want to do , let say I buy and sell stock xyz on one day can I buy and sell stock abc and/or xyz the next day and then wait for both to be settled and not be charged interest?
heres what I want to do , let say I buy and sell stock xyz on one day can I buy and sell stock abc and/or xyz the next day and then wait for both to be settled and not be charged interest?
When you sell a stock the proceeds from the sale will be "unsettled" for 3 market days (T+3). If you have a Margin account you should be able to buy with borrowed funds. What you have to understand is that your buy with borrowed funds will not settle for 3 market days either (and shouldn't be charged interest) and therefore once both the sale, and margin buy settle you will basically have avoided using margin and paying any interest. You should double check with Ameritrade as I know different companies have different margin regulations.
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