Account Balance Settlement

What is settlement?

Settlement marks the official transfer of securities to the buyer's account and cash to the seller's account.

When does settlement occur?

The settlement date is the date when a trade is final, and the buyer must make payment to the seller while the seller delivers the assets to the buyer.

The settlement date for stocks and bonds is usually two business days after the execution date (T+2).

For options, it's the next business day (T+1).

The only difference between a cash and margin account is that the margin account will allow instant access to a closed position on a day trade.

However the settlement date will always be 1 business day after the trade date.

This is one of the reasons, we recommend that you have at least $5,000 in your brokerage account.

The reason is, this will enable you to make two or three trades during the day.