When trade get settled

Question

Accepted Answer

Trades typically get settled within a few days after the transaction takes place.

Trade settlement refers to the process of transferring securities and funds between buyers and sellers.
The exact timing of trade settlement depends on the type of security being traded and the market in which the trade occurs.
In most cases, equity trades settle within two business days, while government bonds and corporate bonds settle within one business day.
Some markets, such as the T+0 settlement cycle, allow for same-day trade settlement.
Trade settlement involves various steps, including trade confirmation, clearing, and settlement.
During the settlement process, the buyer's account is debited with the purchase amount, and the seller's account is credited with the sale proceeds.
Trade settlement helps ensure the smooth and efficient functioning of financial markets.

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