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Author: elann Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 254100  
Subject: Re: 3 Day Settlement Rule Date: 2/25/2014 2:40 PM
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Placing a market buy order and having the price move up and you get filled at a price higher than the amount of your cash balance. Either you or the broker *must* sell something right away, because an IRA is definitely not allowed to be in margin. If you or broker sell the same stock you just bought, that's a "free-riding" violation.

1. Never use market orders.
2. At Fidelity, they keep a running tally of "cash available to buy" and stop you from submitting an order that will go over the limit.
3. Never use market orders.

Elan
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