Freeze, Brokerage Account
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.
Concept at a glance
Definition and explanation
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. [1]
For a more in depth discussion and additional materials, visit our Trading in Cash Accounts page on Investor.gov . [1]
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Frequently asked questions
What does Freeze, Brokerage Account mean in the cited reference?
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. [1]
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Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.