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Trading with cash in a brokerage account is usually straightforward. However, after selling a stock, it may not be clear when you will have full access to the cash or when you can use it to place other trades. When you sell stock, the cash may not be immediately available for withdrawal due to a two-day settlement period. This means that if you sell stock on Monday, you won't receive the cash until Wednesday. Understanding this lag time between transaction and settlement is important for distinguishing between settled and unsettled funds.
