The buy order you are about to place exceeds your settled cash balance
Here’s a summary of the main problem and solutions discussed in the post:
- Main Problem: The user is unable to place a buy market order for $7.37 due to a warning about exceeding their settled cash balance, despite having that amount available to trade.
- Solution Provided: The warning is only a notification and does not prevent the trade from being placed. The user can proceed with the order.
- Additional Explanation: A Good Faith Violation (GFV) occurs if the user sells securities before paying for them with settled funds. Users can still place trades as long as they are aware of their settled cash balance.
- Advice: Monitor the account’s “Settled Cash” balance to avoid cash trading violations, and refer to Fidelity’s resources for further clarification on trading rules.
Here’s the full thread
With the recent dividend of SPAXX, I have $7.37 in my account. When I try to place a buy market order for that amount, it gives me the following warning:
> (013014) The buy order you are about to place exceeds your settled cash balance. Selling these shares before paying in full for the trade could result in a Good Faith Violation. Read Avoiding Cash Account Trading Violations for further clarification.
The reason for this is because it shows me that I have $0.00 settled cash but I have no pending transactions and not sure why I have $0.00 settled cash but $7.37 available to trade or withdraw.
Hey there, @secretply!
The message displayed after clicking “preview order” is simply a warning and will not prevent the trade from being placed. The warning is telling you that if the investments are sold before paying for them with fully settled funds, the account will receive a Good Faith Violation (GFV). The buy order you wish to place will not result in a GFV.
A GFV occurs when you buy a security and sell it before paying for the initial purchase in full with settled funds. Only cash or the sales proceeds of fully paid-for securities qualify as “settled funds.” You will receive a warning regarding a GFV if any portion of your cash is unsettled from trades or uncollected from deposits. However, you are typically still able to place the trade.
Keeping an eye on your account’s “Settled Cash” balance can help avoid cash trading violations. The “Settled Cash” is the portion of your cash (Core) balance that represents the amount of securities you can buy and sell in a cash account without creating a GFV. Your “Balances” tab on Fidelity.com will display your “settled cash” as you know.
Avoiding Cash Account Trading Violations: https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations
If you have additional questions, let us know! 🟢
Why do you keep so much money in spaxx