What is Freeriding?
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Written by Yanmo
Updated over a week ago

What is Freeriding?

When you buy or sell a stock or an exchange-traded fund (ETF), it typically settles in two working days. Freeriding refers to buying shares or ETFs and then selling them before the purchase has settled. Freeriding is a violation of the Federal Reserve Board's Regulation T and may result in a suspension of your account on Bamboo.

How does Freeriding affect me on Bamboo?

To prevent a Freeriding violation, you will not be able to sell a stock or ETF you bought on Bamboo with the new deposit until it settles in 1-2 working days.

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