What are unsettled funds?

Unsettled funds refer to money that's in your brokerage account, but isn't yet available for trading. When you sell a stock, it takes a few days for the money from the sale to settle in your account. Until then, the money is considered unsettled. This waiting period is known as the settlement period, and it's typically 1 business day for stocks and 1 business day for options. During the settlement period, you can't use the money from the sale to buy new securities, but you can use it to pay for commissions or other fees.

Click here to know more about the settlement Cycle.