Can someone explain the "free writing restriction" for me?

Question

I was unable to trade my stocks in my account because of it though i had like 25K in the account...

i called them up and they told me it was free writing restriction

Answer 1

are you sure they didn't say "free riding"?

free riding is a violation of SEC policy.  to facilitate market participation, the SEC allows limited trading with unsettled funds.  when you sell a stock, you don't actually get the money for another 3 business days after the sale.  you can use the proceeds from the sale (the unsettled funds) immediately to buy another stock, but if you trade out of it before the funds that you used to purchase it are settled, then you are in violation.

the SEC just doesn't want you playing with money you don't have yet.

Answer 2

do you mean "free riding?"

"The illegal activity of buying a stock and selling it before paying for the purchase.

Due to the unfair advantage both of these practices give to those able to exploit freeriding opportunities, freeriding is illegal and prohibited by the Securities & Exchange Commission and the National Association of Securities Dealers."

You will generally have a 90 day restriction and no margin privileges. Have them explain to you what you can and can not do.