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

Discussion in 'Wall St. News' started by Quanto, Dec 25, 2023.

  1. Quanto

    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: Dec 25, 2023
  2. destriero

    destriero

    Only complete noobs in cash accounts care about settlement.
     
  3. Quanto

    Quanto

    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: Dec 25, 2023
  4. Robert Morse

    Robert Morse Sponsor

    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.

     
    Quanto likes this.
  5. tomkat22

    tomkat22

    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.
     
  6. traider

    traider

    Meanwhile crypto does instant settlement
     
    Quanto likes this.
  7. Robert Morse

    Robert Morse Sponsor

    That is true. I do think there will be sometime in the future where block chain is used for settlement, but we are nowhere close to that.

     
    Last edited: Dec 26, 2023
  8. Not true. Cutting the settlement period down to 1 day is going to cause a lot of operational issues
     
  9. Quanto

    Quanto

    Not for the traders :)
     
  10. destriero

    destriero

    Move to SPED forum, thanks.
     
    #10     Dec 26, 2023