When trading on the US markets, there are certain settlement rules for cash accounts (those currently offered through Stake) to be aware of and the violations that stem from them.

In the USA, the settlement is T + 3 (so three days after the trade date).

The SEC (US regulator) requires that cash accounts, an investor must pay the full amount for securities purchased. An investor using a cash account is not allowed to borrow funds.

This means that for each trade there must be settled funds in the account before the customer can purchase more securities. There are nuances with the various rules and violations which are covered below.

The three types of potential violations: 

  • Cash Liquidations

  • Good Faith Violations 

  • Free riding Violation