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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (6887)	2/9/2000 11:42:00 AM
From: Dan Duchardt	Read Replies (1) \| Respond to of 18137

Jon, Hmmmm... I have a rollover IRA at TD Waterhouse, which is fully invested. It is, of course, a cash account. I sold some shares the other day, and bought right back (a different stock) on the same day. They didn't complain. I do this frequently (although I am rarely fully invested). By selling something you held the night before, you create buying power up to the amount of the proceeds from the sale. What you cannot do is use the proceeds from the sale of something you bought that same day to buy something else in your cash account. Remember, the stock has a 3-day settlement, the option has a 1-day settlement... And what does that mean exactly?? OK, I'm going out on a limb here, but isn't the settlement period the time you have to deliver cash to you broker to cover purchases you have made, or to deliver stock (options contracts?) you have sold? I don't think there is anything preventing the broker from giving you same-day credit in your account for the sale of securities he is holding for you. If you're hearing yelling, it's probably because you have prevented him from using your money for a couple of days. Dan