The Good Faith Violation occurs when, after selling an asset, you buy and sell another asset before the sale amount of the first asset has been fully liquidated.
When you sell an asset, a down payment is made for the amount of the redemption. This way, the amount is available in your uninvested balance within minutes.
The liquidation of assets in the American market takes place only 2 business days after the operation is requested.
Thus, if you buy and sell an asset with this unsettled balance you will be committing a good faith violation.
Take note that you can buy any assets with these amounts. Buying assets with an unsettled balance is not a violation of good faith. The violation occurs only when you make the buy and sell before the fund is fully liquidated.
Attention! If you commit three good faith violations in 12 months, your account will be restricted to buying only assets with a settled balance for 90 calendar days.