Settlement Date
Date when trade obligations are finalized
What is Settlement Date?
Settlement Date The date when a trade is finalized, securities are delivered, and payment is exchanged. For stock trades, settlement is T+1 (one business day after trade date). For option exercises, stock delivery settles T+1 from the exercise date. Cash-settled index options (like SPX) pay the cash difference on the business day following expiration.
Complete Definition
The date when a trade is finalized, securities are delivered, and payment is exchanged. For stock trades, settlement is T+1 (one business day after trade date). For option exercises, stock delivery settles T+1 from the exercise date. Cash-settled index options (like SPX) pay the cash difference on the business day following expiration.
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