Time is money in the financial world, so we stay pretty busy around here. That said, once a trade executes, we do need a day (or three) to "clear" the transaction and pass the funds from buyer to seller. The "settlement date" is the day we promise to have that work completed:
- Stocks and ETFs – 3 market days after trade date.
- Mutual Funds – 1 market day after trade date.
- Options – 1 market day after trade date.
Are you a frequent trader? There are federal laws regarding the buying or selling of shares during the settlement period. To avoid trouble, get to know Regulation T.
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.