customer accounts outline

Cash account

·        Pay for all of purchase

Margin account

·        Borrow $ for part of trade

Settlement date

·        Different date based on type of delivery

Same day delivery,cash trade,cash delivery

·        Transaction settles that day

·        Transaction complete by 2:30pm EST

Regular way delivery settlement date

T+3

·        FINRA sets dates

·        third day after trade date

·         transfer of securities-stock,bonds,municipal bond,exercising stock (equity) options

 

T+1

·        next business day

·         transfer of $, government securities

·        Trading options-stock,interest,interest rate, foreign currency

·        Exercise index options

·        Exercise interest rate options

·        Writer gives $ to buyer of option that is exercised