‘settlement’ principle?

[R33C0]

I have been trading stocks with a broker on a ‘standard cash’ basis, and after trading, the money usually takes 2 days to return into my account so I can use it to trade again.

I recently started trading micro mini futures (different broker) and am wondering if the same ‘settlement’ principle applies?

 

[Robert Morse]

No. Futures do not require a 2-day settlement process. There is also no Pattern Day Trading Rule with Futures.

 

[tiddlywinks]

Futures trading settlement is virtually instant. Check with your broker for specific policy.

1) The proper term for futures margin is PERFORMANCE BOND.
2) Your FCM guarantees to the exchange you have the NECESSARY and/or agreed upon amount of PERFORMANCE BOND to enter into a trade.
3) The exchange acts as a counter party of sorts to ALL TRADES, matching up the opposite position participant who also has an FCM guaranteeing the necessary and/or agreed upon funds.

There are times when a trade goes amiss administratively for a multitude of reasons, and funds may not be instant. But In the course of non-extreme or non black swan, these (rare) situations resolve within hours, not days.

 

[R33C0]

Thank you for replies.

 

[ajacobson]

Maybe the beginning of the end to PDT and overall current "live" settlement. Early days. This is the securities side.