Settling Securities Transactions, T+2
Investors must complete or "settle" their security transactions within two business days. This settlement cycle is known as "T+2," shorthand for "trade date plus two days."
Concept at a glance
Definition and explanation
Investors must complete or "settle" their security transactions within two business days. This settlement cycle is known as "T+2," shorthand for "trade date plus two days." [1]
T+2 means that when you buy a security, your payment must be received by your brokerage firm no later than two business days after the trade is executed. When you sell a security, you must deliver to your brokerage firm your securities certificate no later than two business days after the sale. [1]
The two-day settlement date applies to most security transactions, including stocks, bonds, municipal securities, mutual funds traded through a brokerage firm, and limited partnerships that trade on an exchange. Government securities and stock options settle on the next business day following the trade. [1]
Click here to read our Investor Bulletin: New “T+2” Settlement Cycle – What Investors Need to Know. [1]
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Frequently asked questions
What does Settling Securities Transactions, T+2 mean in the cited reference?
Investors must complete or "settle" their security transactions within two business days. This settlement cycle is known as "T+2," shorthand for "trade date plus two days." [1]
Settling Securities Transactions, T+2 connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.