Zecco users answer my question about trade settlment.?

Question

i have account with zecco. i bought two different shares at different days and thani kept it for a week and i sold it on friday. i want to transfer money to my bank account but they rejected my pending order and said that it was rejected cus of trade settlement. but my cash balance , totaly equity and buiying power says that i have money.

Answer 1

All brokerage firms, not just Zecco, post transactions as of the settlement.

There are two dates to a transaction,

1-the trade date, the day the trade was executed and

2-the settlement day, this is three business days following the day of trade.

Settlement date is the day the money and/or securities are due, so this is the date they used to post to your account.

Although transaction history is recorded on the day of trade, the posting is not done until the settlement day

All purchases must be paid in full, before they can be sold, if they are sold before payment is made, the account is restricted for 90 or until payment is received AND you can not use proceeds of the sale to cover the purchase.

If you buy without paying and then sell, yes your balance will reflect the net amount of money, this does not mean it is truly a free credit balance.