Investing term

What is Settlement?

The delay between placing a trade and the money + shares actually changing hands.

Settlement is the short delay between placing a trade and the actual exchange of money and securities — often a day or two after the trade date. Until a trade settles, the cash or shares aren't fully yours to move. It matters for things like qualifying for a dividend by the record date, where settlement timing determines whether you're officially on the books.

For example

You sell shares Monday but the cash settles Wednesday — only then is it fully available to withdraw or reinvest.

Settlement is taught hands-on in Stage 7Brokers, Accounts & Getting Started.

See the lesson →

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