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.