Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Green Receipt who wrote (5273)	2/19/1999 3:32:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 13953

Free riding? That would be your offense should you purchase a security without first having cash or buying power in your account to pay for the security, then selling and using the proceeds of the sale to pay for the purchase. If you sold the same day as the purchase (so the trades settle on the same day) or if you made a cash sale (one day settlement - don't know if this is still possible) prior to settlement of the purchase, then you would avoid having to deposit funds to cover the purchase. I seriously doubt this is a problem these days as brokers generally require that you have good funds in your account before they let you place the buy order. I earlier days, however, unscrupulous customers would place buy orders, promising to make payment within the (old) five day settlement. Then, if the stock went up, they'd sell and take their "free ride", but if it went down, they would repudiate the trade or simply vanish. Now, do you want to know what a "bucket shop" is? Bob uselessinfo.com ;-)