When you sell a security or close a position, the cash proceeds from that transaction may not be instantly available for you to apply to a subsequent transaction until the first transaction has fully settled (see additional details regarding settlement date).

If you enter an order and receive the following order reject message: "Insufficient Settled Cash", it gene rally results from one of the following events: You manage a "Cash" type account which, by definition, is precluded from borrowing funds or engaging in free-riding and may be limited to trading with settled funds;You maintain a "Margin" or "Cash" type account, have sold or closed a position in the Securities segment and are attempting to apply the proceeds from that transaction to a new futures or futures option transaction carried in the Commodities segment of the account.

Note that in the U.S., securities and commodities transactions are subject to distinct regulation and customer protection rules which require that settlement be completed before proceeds can be transferred between the two account segments.

Clients who receive this order reject message may elect to: Wait until funds settle to enter the new order; Deposit additional funds in the amount necessary for the new order to be accepted (please observe credit hold policies which differ by deposit method); or Reduce the order size to an amount consistent with settled funds.

Clients may also receive this rejection message when seeking to purchase a foreign security in a "Cash" type account. Because a "Cash" type account is excluded from borrowing funds, clients will need to place a currency conversion and wait for those funds to settle prior to purchasing a foreign security.