Today i try to explain difference between cash and margin accounts.
In margin accounts the broker loans you money and cover some parts of the transaction that you don't have enough cash in your account. Cash accounts can only used "settled" cash in your account. So when you do a transaction your cash for the transaction is set aside and if you get money back you must wait for it to be settled before you can use it again. 1 day for options and 2 days for stocks.
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