Freeze, Brokerage Account

Term · Finance and investing · MLC-T-FIN-000176

In a cash account, an investor must pay for the purchase of a security before selling it. If an investor buys and sells a security before paying for it, the investor is “freeriding,” which is not permitted under the Federal Reserve Board’s Regulation T and may require the investor’s broker to “freeze” the investor’s cash account for 90 days. During this 90-day period, an investor may still purchase securities with the cash account, but the investor must fully pay for any purchase on the date of the trade.

For a more in depth discussion and additional materials, visit our Trading in Cash Accounts page on Investor.gov.

Table 1. Record
Identifier	MLC-T-FIN-000176
Field	Finance and investing
References	SEC Investor.gov Glossary

Record as JSON

{
  "id": "MLC-T-FIN-000176",
  "term": "Freeze, Brokerage Account",
  "field": "Finance and investing",
  "definition": "In a cash account, an investor must pay for the purchase of a security before selling it. If an investor buys and sells a security before paying for it, the investor is “freeriding,” which is not permitted under the Federal Reserve Board’s Regulation T and may require the investor’s broker to “freeze” the investor’s cash account for 90 days. During this 90-day period, an investor may still purchase securities with the cash account, but the investor must fully pay for any purchase on the date of the trade.\n\nFor a more in depth discussion and additional materials, visit our Trading in Cash Accounts page on Investor.gov.",
  "references": [
    "SEC Investor.gov Glossary"
  ],
  "url": "https://mlchart.com/terminology/finance/freeze-brokerage-account/"
}

Record 176 of 398 in Finance and investing terminology (MLC-0118). Request the full dataset.