After a sale of equities, ETFs, or options in a cash account, the transaction will typically need to settle before the funds can be withdrawn. Equity and ETF trades settle 1 business day following the trade date (T+1), and option trades settle 1 business day following the trade date (T+1).
Cash Account
Settled Funds
Immediately available as buying power
Immediately available to withdraw
Unsettled Funds in a Cash Account
Immediately available for use to place trades, but closing the position before the funds generated from the closing sale have settled can result in a good-faith violation (GFV). If you earn three good faith violations in a 12-month period, Tradesk will restrict the cash account for 90 days. This means you will only be able to purchase stocks if you have fully settled cash in the account before placing a trade.
If you have 2 or more GFVs, unsettled funds will not be available for trading until the closing trade has settled
Margin Account
Trading in a margin account allows for the use of unsettled funds to place trades. Proceeds from the sale of positions will immediately be available as buying power.