Good News Reminder: T+1 replacing T+2 comes in May 2024

Q

Quanto

An important calendar event for stock traders:

In about 5 months (ie. in May 2024), the settlement time for proceeds from stock sales will change from T+2 to T+1,
meaning the funds will then be available already on the next trading day.
This applies to CashAccts only, not MarginAccts (see below for more info regarding these acct types).

Details about T+1 here & elesewhere on the web:
https://www.supermoney.com/encyclopedia/t-1-settlement
https://cooleypubco.com/2023/02/16/t2-goes-to-t1/
https://www.marketsmedia.com/five-months-until-t1-in-fx-time-is-of-the-essence/
 
Last edited:
CashAccts don't get any margin call, and also the PDT rule for small accts < $25k does not apply
(ie. someone with a small account < $25k can even do daytrading using a CashAcct).
These factors are important especially for new traders.
IMO new traders really should begin with a CashAcct, not MarginAcct.

Many years ago I've given up my MarginAcct for a CashAcct.
I'm specializing on CashAcct (it has some restrictions like that one cannot short stocks,
but one can use some workarounds by creating synthetic alternatives using options).
So, I don't need a MarginAcct anymore. Thx, but no, thx! :)
 
Last edited:
Worldwide, many new to trading in US equities are unable to activity trade because of the PDT rule. Many CASH accounts trade options only for the leverage and next day settlement. This will help the cash accounts trade more often and avoid leverage they are not ready for. We get a large number of requests for accounts from $5000 to $10,000 from many countries including here in the USA.

destriero said:
Only complete noobs in cash accounts care about settlement.
More...
 
Just because you have a margin account doesn't mean someone has a gun to your head forcing you to use margin. It's nice to know it's there though if you do need it. In a hot market that extra buying power comes in handy.
 
You must log in or register to reply here.
Back
Top