I'm a little fuzzy on what triggers a good-faith violation when trading with unsettled funds. My full-service broker periodically sells, then buys, stock in my account in a single day, but the stocks are held for weeks if not months.
This question is about shorter-term trading in my self-directed account with a retail brokerage. It's a cash account. I am in the US, as is the broker.
Here's what I did today. (The amounts have been simplified.)
- started the day with $2000 cash available to trade, of which $1000 is settled. The rest will settle tomorrow.
- also own some ABC stock that was bought several weeks ago.
- bought $1000 worth of XYZ
- sold $1000 worth of ABC
- bought $1000 worth of XYZ
- bought $1000 worth of XYZ
- sold one of the lots of XYZ (FIFO, which is the only choice I have)
I know the XYZ sale will be OK because I bought it with settled cash, but when can I sell the other lots of XYZ without getting a trading violation?