No. of Recommendations: 0
I’m receiving emails from my broker telling me that when I sell and then reinvest proceeds in stocks on the same day (before the three day settlement date), I risk being charged interest on my margin account if the sale fails to close on time.

I think sale of shares already in the brokers account is very unlikely to fail. In fact failure of a stock sale to close has never happened to me after hundreds of trades.

I presume the warning is mostly lawyer talk along the lines of please don’t sue us for failure to warn you.

What’s your experience? How often do stock sales fail to close? And why?
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