If I have no cash available and I sell a stock on Monday for $1000 and then use that $1000 to buy a new stock, I am warned against free ruding, as I am using unsettled funds to buy the new stock. I must hold the new stock until it settles, else I will be blocked for 90 days.
With T+2 settlement, can I sell the new stock on Wednesday? I have been waiting an extra day when this happens, selling on Thursday.
My brokerage offered no clear instructions. Do I just assume it settled on Wednesday and sell then, or should I keep waiting 1 extra day?
Thanks
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