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Settlement (T+1)

The point at which a trade is final and cash and shares change hands.

Orders & TradingBeginner

Definition

US and Canadian stock trades settle one business day after the trade, called T+1, since both markets moved from T+2 in May 2024. Your sale proceeds are available to withdraw after settlement, though many brokers let you reuse them sooner.

Watch out for

Options and some other products settle on different schedules. Cash accounts must wait for funds to settle before they are fully free.

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