Hello freetrade community!
As far as I know, I can trade unsettled cash and unsettled funds, so I want to ask you a question regarding settlement fail.
Let’s imagine the following situation:
I only have 100 ABC shares worth £ 100 in my account. Monday morning I sell all my shares and buy 100 XYZ shares for £ 80 at lunchtime. However, on Wednesday it turns out that on my first trade (ABC sale) there was a settlement fail and I still have these shares in my account, but there is no money to pay for 100 XYZ shares.
What happens then?
What will need to be done on my side?
What actions will you take to solve this problem?
Thanks in advance!