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
