> It is also margin trading if you buy and sell before settlement Not always, see situation #3 https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_cashac

> It is also margin trading if you buy and sell before settlement Not always, see situation #3 https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_cashaccounts https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_ca... You need margin to engage in day-trading, but you can sell a settled stock & immediately use the funds to buy something else just fine as long as you then hold onto that purchase for 2 days.