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Cash Buying Power


What is cash buying power?

Cash buying power is the amount available to purchase securities in a cash account. It includes:


  • Settled cash.
  • Unsettled cash.
  • Eligible provisional/instant buying power from pending ACH deposits.

What is the difference between settled cash and unsettled cash?

Settled cash is cash that has completed the settlement process and is available for trading. Stocks, ETFs, and options trades settle on the next business day, provided the trade occurs before 8:00 PM ET. Crypto trades settle immediately. Unsettled cash is cash from the sale of securities that has not yet settled. Although unsettled cash is included in cash buying power and can be used to open new positions, buying power restrictions may apply if you sell a position before the funds used to purchase it have settled.


Why didn't my cash buying power fully recover after I sold a position?

If a position was purchased using unsettled funds, selling that position before those funds settle will not immediately restore your buying power. Once the original funds settle on the following business day, the sale proceeds will be added back to your cash buying power.


How does trading with unsettled funds affect my account?

Day trading with unsettled funds can result in a Good Faith Violation (GFV). Repeated GFVs may lead to restrictions that limit trading to settled funds only. You can find more information on GFVs here.


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