As you deposit cash into an account, it will, by default, go into the sweep. Also, if you elect to have dividends paid in cash, they will sweep into the account. The great thing about the sweep account is that when you want to buy more securities, the cash is automatically swept back into your brokerage to buy the securities. Stock settlement violations occur when new trades to buy are not properly covered by settled funds. Although settlement violations generally occur in cash accounts, they can also occur in margin accounts, particularly when trading non-marginable securities. The main violation types are good faith, freeriding and liquidation. When you sell stock or earn dividends on the investments in your portfolio, your brokerage firm holds this cash in an account until you reinvest the funds. With a money market sweep account, any cash that accumulates in your account is automatically “swept” into a money market account.