Good Faith Violation (GFV) Explanation
A good Faith Violation (GFV) Typically occurs in the Context of a cash account when you buy a security and then sell it before the funds from the initial purchase have settled. This violates the "Good Faith" requirement, which mandates that you have enough settled cash or available margin to cover your purchases. If you receive a GFV, your Brokerage may restrict your trading privileges'. To avoid Gfvsm make sure you have sufficient settled cash or use a margin account, but be aware of margin-related risks. Trading rules and regulations may vary, so it's essential to consult your brokerage and familiarize yourself with their specific policies. A Good Faith Violation (