With T+1 settlement, does that mean you can, IN A CASH ACCOUNT, lets say, buy a stock in the after hours session and sell it the next day, then use all the proceeds from the sale to buy another stock, and sell it the next day, then use all the process from that sale to buy another.... etc, etc ,etc?
I've been out of the loop, since I've been on the road...No shit, they actually upgraded T+3 to T+1? Happy days!
I hope I understood you correctly. You could sell it whenever. It means that if you close a position, it will settle to cash the next business day, enabling a withdrawal, etc. You don't need your trades to settle to cash to trade multiple times per day. The funds are made available for another trade as soon as you close your position.
Maybe I'm mistaken, but what you describe sounds like T+0, not the T+1 that is coming. Let's say that in a cash account you buy a stock for the full value of the account and sell the whole position an hour later, that cash will not be settled during the same session, and you cannot buy/sell, buy/sell the whole account value multiple times in the same session. It will be fully settled and ready for a new trade the next day's open. Maybe I am understanding it incorrectly - please correct me if I am.
So it means that each day you can exit an existing position that is using all the cash in the account in the morning and buy it back later in the day, and repeat that every market day?
All, you still need to wait for settlement. Whatever day you close your long positions, you will get back your buying power the next day. T+1 is Trade date plus 1 day. Not same day.
With most brokers, If you sell on Monday Morning, then rebuy Monday in after hours, every day, should it not be a problem? If the rebuy is sold the same day, then it is freeriding, which is a violation, because the rebuy hasnt settled the T+1 until the next day. But since it would be sold the next day, wouldnt it be ok?