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Settlement Date

When will my trade settle?

 

 

After a trade order executes, it takes 1 to 3 days to settle after the Trade Date (depending on the trade type).

 

Securities and Settlement Periods

Security Type

Settlement Date
(Prior to 09/05/17)

Settlement Date
(Beginning on 09/05/17)

Stocks

3 Market days after trade date

2 Market days after trade date

Exchange Traded Funds (ETFs)

3 Market days after trade date

2 Market days after trade date

Mutual Funds

1 Market days after trade date

1 Market days after trade date

Options

1 Market days after trade date

1 Market days after trade date

 

 

You'll be able to withdraw funds from your Capital One Investing account, or use the funds to buy securities after the settlement date.

 

What is the difference between trade date and settlement date?

 

Tip: Bank-only holidays such as Columbus Day and Veterans Day aren't considered settlement days. To view a list of all market holidays, see our Holiday and Trading Calendar.

 

What is freeriding?

Regulation T of the Federal Reserve Board (FRB) requires that stock purchased in a cash account must be paid for in full before it is sold. A failure to comply with these rules is known as freeriding.

We'll try to break down what this all means without putting you to sleep with industry jargon:

When you sell a security, funds are not officially transferred between the buyer and seller until two business days following the sale of Stocks or ETFs and one business day for mutual funds or options. This time is known as the settlement period. (Still awake? Good.)

During the settlement period, we allow you to use these proceeds to fund the purchase of a new security.

If, however, you choose to sell the second security prior to the settlement date of the first security, you have then bought and sold using unsettled funds. This is considered a "credit" transaction and is prohibited by Regulation T of the Federal Reserve Board.

The Federal Reserve Board requires that we place a 90-day settled-funds-only freeze on every cash account that is in violation. Accounts with this restriction are unable to invest funds from stock sales until the sales settle.