Can someone clarify how unsettled cash works for multiple purchases?

It would be useful to have more information about how unsettled cash works in FreeTrade.

According to info here:

Due to the complexities of this process, many UK stock orders will typically settle 2 working days after they were made (AKA T+2) and US stock orders typically after 3 working days (AKA T+3) which is the industry standard.

Say I have £1000 settled cash, then I buy stock A with that money. Then a day later sell it and buy stock B with the unsettled cash, then a day later sell it and buy stock C, then a day later sell that.

I have bought and sold 3 stocks, one with settled cash and two with unsettled cash.

Does the sale of each stock need to settle in order to cover the purchase of the subsequent one, or is the clearance time calculated from the sale of the last stock?

For example, with the above, from the sale of stock C would it take 2-3 days for the cash to settle or 6–9 days because all the intermediate sales also need to clear?


You can buy straight away with unsettled cash, no need to wait for clearance. what you can’t do is withdraw it.


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