Invest Disclosures

Freeriding
A cash account is subject to a freeriding violation if positions are opened with insufficient funds and subsequently closed prior to funds being deposited. Accounts with a freeride violation are subject to a 90-day restriction which means settled cash is required before placing opening trades.

Example:

A customer purchases 100 shares of XYZ with insufficient funds, and then sells some or all the shares without depositing funds in the account to cover the purchase. A deposit to cover the amount of insufficient funds would be required to prevent the freeride violation. Liquidating other securities cannot satisfy the violation.