The Final Frontier - Online Remote Trading Message Board

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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: Dan Duchardt who wrote (11268)	6/4/2004 7:41:41 PM
From: Tom C	Read Replies (2) of 12617

The real problem is these regulations are outdated and being inconsistently applied to situations for which they were never intended. The real problem is that it takes three days to settle on a trade (T+3). Even if you have a cash account the money for the trade is in limbo for three days. If you buy and sell 10 stocks a day using the same money, you have ten instances of your money being in limbo at the same time. What happens when one of those winning trades unwinds? If you have a margin account you have some leeway but if your cash account has to cover it, all your cash is currently in limbo. Who is making money on those three days. Maybe the NASD is trying to put pressure on the industry to go with a T+0 settlement.

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