Hello, I recently change my cash account at Charles Schwab for a margin account so I would be able to short the market as well.
I just started looking into being a bit more active in trading. I bought some shorts on ADM and let them sit for a few days after which they automatically were closed by Charles Schwab and I got a message that I’m trading without settled funds. The exact message was:
“When you place a trade without sufficient settled funds or securities on deposit, we are required to make sure all of the following conditions are met:
– you make full cash payment promptly with settled funds or deliver previously owned securities into the account within the payment period;
– you keep the purchased securities until full payment with settled funds has been made;
– you do not make payments with the proceeds from the sale of other securities made after the trade date.
If these conditions are not met we have to restrict trading”
My question is what I did wrong? I only bought 7 ADM shorts at 154. It the time Charles Schwab closed them they were in the profit at 152.
I have an additional 1000 cash balance and worth about 3000 in stock positions (excluding the short on ADM).
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