Running Account Authorization

Definition: A Running Account is a separate account maintained by a stock broker to facilitate ease of carrying out transactions in securities for regular traders.
Details: It allows the broker to adjust shares or funds in the account towards settlement obligations of future transactions, rather than settling each transaction within 24 hours.
Key Features:
- Voluntary: Running Account authorization is optional and can be given by investors who frequently buy and sell securities.
- Revocable: The authorization can be revoked by the investor at any time.
- Settlement Period: The actual settlement of funds and securities must be done by the broker at least once in 30 days or 90 days, as chosen by the investor.
Benefits: Running Account authorization simplifies the trading process for frequent investors by reducing the need for immediate settlement of each transaction.