Yes. For shares, settlement is 3 days after the transaction (T+3).
If you buy shares tomorrow (24th), then the settlement is the 27th but you can sell the shares before they settle - this is because you also don't need to settle until T+3 - so your purchase will always settle before or at the same time as your sale needs to settle.
Note that for options, settlement is shorter (T+1).
I understand the normal T+3 settlement process, but are you allowed to do the following.
Say I buy some shares for $1, and they just happen to be on the rise, and an hour later they are at $1.20. Can I immediately sell them, even though I haven't settled?
I understand the normal T+3 settlement process, but are you allowed to do the following.
Say I buy some shares for $1, and they just happen to be on the rise, and an hour later they are at $1.20. Can I immediately sell them, even though I haven't settled?
I understand the normal T+3 settlement process, but are you allowed to do the following.
Say I buy some shares for $1, and they just happen to be on the rise, and an hour later they are at $1.20. Can I immediately sell them, even though I haven't settled?
Is it possible to buy $10000 worth of shares and sell it for $9000 in the same day (a loss of $1000) while you only have $5000 in your settlement account?
Is it possible to buy $10000 worth of shares and sell it for $9000 in the same day (a loss of $1000) while you only have $5000 in your settlement account?
all depends on who one trades with ...... commsec has a policy of t+1 trading ie you can trade with no cash actually there as long as the difference is covered at settlement
etrade you must have funds to cover it b4 you can trade ( not settled but available )
so if with commsec and using borrowed funds ie commsec funds . if you take the 1000 loss and you have 5k sitting there cleared then yes you are covered for settlement
if the above scenario is with another broker using own cleared funds to purchase in first place then yes you are cleared as the loss comes straight out of the sale with no creditor to repay
hope this is clear as the more i ramble the muddier it gets
all depends on who one trades with ...... commsec has a policy of t+1 trading ie you can trade with no cash actually there as long as the difference is covered at settlement
etrade you must have funds to cover it b4 you can trade ( not settled but available )
so if with commsec and using borrowed funds ie commsec funds . if you take the 1000 loss and you have 5k sitting there cleared then yes you are covered for settlement
if the above scenario is with another broker using own cleared funds to purchase in first place then yes you are cleared as the loss comes straight out of the sale with no creditor to repay
hope this is clear as the more i ramble the muddier it gets