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Trading with cash in a brokerage account is generally straightforward, but access to funds after selling stock may not be immediate. When you sell stock, the cash may not be available for withdrawal until the settlement date, which is two trading days after the transaction. This delay means that if you sell stock on Monday, you won't receive the cash until Wednesday. Understanding this two-day lag time between transaction and settlement is crucial for distinguishing between settled and unsettled trades.
