What is a GFV?
A GFV occurs in a cash account when an investor buys a stock using unsettled funds, and liquidates the position before the settlement date of the sale that generated the proceeds.
How it happens
A GFV occurs when a cash account liquidates stocks that were purchased using proceeds which have yet to settle.
Receiving a GFV
After 3 violations in 12 months, your account will be restricted to using settled cash only. This means that if you sell a security, you must then wait two business days if it is a stock sale, or one business day if it is an option sale, before using the proceeds on a new purchase. After 4 violations, your account is restricted for 90 days. After 5 violations your account will be closed.
How to resolve a GFV?
No deposit or liquidation can lift a GFV. Each GFV will automatically expire at the beginning of the 13 months since its trade day.