Definition
Reserved funds are amounts temporarily set aside for pending orders, withdrawals, open obligations, locked products, or other accepted account commitments.
In market context
Reservation prevents the same balance from being promised to more than one transaction and can make available cash lower than the posted account balance. The hold should be released or converted into a ledger entry when the related instruction is cancelled, rejected, executed, or settled. Timing varies by obligation, and funds may remain unavailable while a withdrawal, trade, or product exit is still processing.
Source
Use the primary source for fuller regulatory or market context.
