How can I trade using unsettled funds?

To trade using unsettled funds, you need to upgrade your account from a 'Cash' type to a 'Margin' type. A margin account allows you to use unsettled funds for trading purposes, providing more flexibility in your trading activities. Here is what you need to know:

1. Upgrading to a Margin Account:
   • To request an upgrade from a cash account to a margin account:
     1. Log in to Client Portal.
     2. Click the User menu (head and shoulders icon in the top right corner) followed by Settings.
     3. Under Account Settings find the Account Configuration section
     4. Click Account Type to request an upgrade from Cash to Margin
     5. Click on Continue and complete the steps presented.
2. Approval Process:
   • Margin requests are approved based on your declared Financial Information, Investment Experience, and Investment Objectives.
   • Approval typically takes 24 to 48 hours.
   • Accounts with margin permissions will have margin on eligible positions as long as the account Securities Equity with Loan Value or Commodities Net Liquidation Value remains above USD 2,000 (or equivalent in other currencies).
3. Benefits of a Margin Account:
   • You can access unsettled funds prior to the settlement day for trading purposes.
   • Allows for more flexible trading compared to cash accounts.
4. Important Considerations:
   • While you can use unsettled funds for trading, these funds cannot be withdrawn until settlement.
   • Margin accounts come with additional risks and responsibilities, such as:
     • Potential for greater losses
     • Interest charges on borrowed funds
     • Possibility of margin calls
     • Be aware that you may be subject to the Pattern Day Trader rule
     • Brokers may have rules that are more restrictive than those required by regulators
5. Cash Account Limitations:
   • Cash accounts are restricted to trading with fully settled funds only

Remember that trading on margin involves additional risks and costs. It is important to fully understand the Risks of Margin Trading before upgrading your account and engaging in margin trading.