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What is a Good-Faith Violation(GFV)?

A Good-Faith Violation (GFV) occurs when you liquidate stocks that were bought with unsettled proceeds.


Each Good-Faith Violation will stand in your account for 12 months and automatically expire on the 13th month. No cash deposit or stock liquidation will alleviate the violation.


After the second GFV occurs, the account's buying power will be restricted to settled funds only. Selling positions will no longer increase buying power until it settles (T+2). After 4 violations, your account will be restricted for 90 days. After 5 violations, your account will be closed for 90 days.

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