stock markets – Avoiding Good Faith Violation

Date:

I understand the purpose of having enough funds to make stock purchases.
But I don’t understand when the funds are available for trade after selling stock.

It was my understanding:

  1. Buy stock A on Monday
  2. Sell stock A on Monday afternoon
  3. I can use the funds from that sale to buy stock B on Monday, but I can’t sell stock B until T+1
  4. Tuesday morning I can sell stock B

But selling stock on Tuesday has given me a Good Faith Violation. So I am not understanding something.

I know that they say you need the funds to be settled, but even after 4 days the funds never say that they are “settled”

For reference I am looking at Fidelity’s webpage

Can anyone help me understand how to avoid Good Faith Violations?

[

Source link

Share post:

Subscribe

Popular

More like this
Related