Question about 3 day settlement rule

I'll tag a question along with that.

With a non-margin account you may see the funds as "unsettled cash" with which you may buy with, but you cannot sell until the cash settles. If you do, you face a 90 day suspension.

Does this not impact a margin account at all?

I have 1 margin account but I don't trade on margin. It's a small account I try to keep very conservative for now.

 

Adding onto that, how does short selling work with the T+3 settlement?

 

Even if you don't use margin?

Interesting,
Why?

 

No, this doesn't impact margin account because a margin account essentially allows you to borrow the cash to trade while you wait for the trade to settle.

 

Correct me if I'm wrong, a trade is a trade so when you buy to cover, the cash still has to settle so there's really no difference.

 

Short selling still takes 3 days to settle, but you need a margin account in order to be able to short.