Have you recently made a deposit or withdrawal to your account? Or, did you get assigned short stock from a short call from an underlying that went ex-dividend? If so, then you may see a Pending Cash entry in your platform. In a nutshell, this is the platform accounting for any future money movement(s).
Additionally, the amount listed in your Pending Cash entry is withheld from your buying power to reflect any upcoming money movement(s).
|Reasons for Pending Cash|
|Deposit||A deposit request that is subject to a 4-business day holding period.|
|Withdrawal||A recent withdrawal request.|
|Dividend||The account owes the dividend from a short call assignment/short stock position.|
If your account now owes the dividend, then the platform will preemptively account for any owed dividends by creating a Pending Cash entry within the balances drop-down menu in the downloadable desktop platform. To see if your account owes a dividend, click the blue Balances drop down menu: . The balances drop-down is immediately to the right of your abbreviated account number at the top of the platform.
To learn more about dividend risk, then please click here.
Below is an example of an account that was assigned 100 short shares of PFE the day before the ex-dividend date and now owes a $34 dividend ($0.34/share). The owed dividend will remain on the platform until it is paid out on the payable date. Payable dates will vary.