Trading settlement funds
All funds bought and sold from other companies settle through your Vanguard money market settlement fund. Before you transact, find out how the settlement fund works. Some investors try to profit from strategies involving frequent trading of mutual fund shares, such as market-timing. So the funds from the sale on day 1 will always settle before your buy order on day 2 settles. So even though the funds from a sell order cannot be withdrawn from the account until settlement, they should still be available for trading. Check with your broker, as this should be feasable. A settlement fund is a money market fund that's used to pay for and receive proceeds from brokerage transactions. If your settlement fund is in a mutual fund account linked to your brokerage account, the accounts work together to complete transactions. Money moves or "sweeps" between the two accounts.