Frequently Asked Questions
What are the repercussions of a free ride violation(s)?
Accounts that have one free ride violation in the previous 90 days will receive an FRV restriction and be limited to trading on settled cash only for 90 days. While in an FRV restriction, all ACH deposits will not be included in buying power calculations for 3 days following the deposit. If an account has multiple free ride violations, it will be limited to liquidating trades only for 90 days.
What is the deposit Return Trigger Timing?
We look back 3 days when there is an ACH return. If the deposit occurred before the 3-day window, Apex (tastyworks' clearing firm) will not calculate free ride violations. If the deposit occurred within the 3-day window, we will calculate any free ride violations on a daily basis that occurred from the deposit date through the return date. For example, if a return occurs on 1/6/2023, we will look for deposits back to 1/3/2023. If the deposit was from 1/3/2023, an FRV may trigger from any day from 1/3/2023 through 1/6/2023.
How many days is my deposit held from my buying power?
When calculating buying power, we will exclude any ACH deposits made in the prior 3 days if an account is under an FRV restriction. For example, when buying power is calculated on 1/6/2023, we will exclude any deposits made on 1/6/2023, 1/5/2023, 1/4/2023, and 1/3/2023.
How to remove an FRV restriction?
At this time, there are no resets available for FRV closing-only restrictions. The restriction will lift 90 days after the closing-only restriction is put in place. Please contact us at firstname.lastname@example.org with any questions or concerns relating to a free ride violation in your account.