What “Settlement” Means
Settlement is the process of officially completing a financial transaction.
When you buy or sell an asset, the trade may execute instantly — but the actual exchange of money and ownership happens during settlement. This is when:
The asset legally transfers to the buyer
The cash is officially delivered to the seller
The transaction is finalized on the books
Until settlement occurs, the transaction is considered pending.
What T+1 Means
“T+1” stands for Trade Date + 1 Business Day.
T (Trade Date): The day the transaction is executed
+1: One business day later
If you sell on:
Monday → Settlement typically occurs Tuesday
Friday → Settlement typically occurs Monday (assuming no holiday)
Weekends and federal holidays do not count as business days.
When Proceeds Become Withdrawable
Funds from a sale typically become withdrawable once the transaction settles.
Before settlement:
The proceeds may appear in your balance
But they are not yet eligible for withdrawal or transfer
After settlement:
The funds are fully available
You can withdraw or transfer them without restriction
Why Cash May Show as “Pending”
Cash may appear as pending because:
The trade has executed but has not yet settled (T+1 timing)
A deposit is still clearing through the banking system
A recent transaction is still under standard processing review
Pending status helps ensure:
Accurate accounting
Fraud prevention
Proper completion of the transfer process
Once settlement is complete, the pending status is automatically removed.