Good Faith Violation ("GFV")

Investrade Discount Securities through its clearing agent Hilltop Securities, Inc. is required to implement policies concerning trading with unsettled funds. Your account can be charged with a Good Faith Violation (GFV) if you sell a security that was purchased with unsettled funds and then sold prior to the settlement of the first sell (see examples below). Three (3) GFV’s in any twelve (12) month rolling period will result in your account being restricted to liquidating transactions only for 90 days.  Please note that stocks settle in two business days and options settle in one business day.

Stock Example:

Option Example:

For questions contact Investrade at 1-800-498-7120.