In my CDP account, what does settlement date means? Does it means the day the stock I traded is officially under my name? - Seedly
 

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Asked by Anonymous

Asked on 05 Jul 2019

In my CDP account, what does settlement date means? Does it means the day the stock I traded is officially under my name?

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The settlement date is the day that the transfer of cash or assets is completed and is usually a few days after the trade is complete - note that in Singapore this is T + 2 (used to be T + 3), and other markets will have different settlement dates.

You'll have to pay by settlement date if you are buying, else your broker has the right to force sell for you and you will have to settle the difference. If you sold, then it's just a matter of waiting for your proceeds minus the costs to appear.

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Jonathan Ang
Jonathan Ang
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Top Contributor (Dec)

Level 7. Grand Master
Answered on 08 Dec 2019

Its the day you have to pay up for the trade you did :)

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Daryl Liao, Fti
Daryl Liao, Fti
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Top Contributor (Dec)

Level 7. Grand Master
Answered on 20 Dec 2019

Date that the transfer of share is completed.

I remember it to be 3 days after trading.

But brokers may extend some credit to you if you have some history with them.

Stock will be under your name after that. ​​​

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Bibiana
Bibiana
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Top Contributor (Dec)

Level 7. Grand Master
Answered on 07 Dec 2019

Adding on the answers, the settlement date is shorter fro mthe date you've purchased the stock. I think that's good because it encourages real ownership instead of contra-trading.

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Bjorn Ng
Bjorn Ng
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Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 05 Dec 2019

Settlement date means when will the money be deducted. For example, the settlement will say T-2 days, where T refers to the working day you bought the stock. After 2 days, is where the money will be transferred/withdrawn from your bank to pay for the stock, and then you will see this stock appear in your CDP account.

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Junus Eu
Junus Eu
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Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 05 Dec 2019

Settlement date = Date when money has been transferred (ie. actual day on which transfer of cash or assets is completed and is usually a few days after the trade was done).

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Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered 3d ago

The date the transaction is settled. It is when you officially paid in cash and receive shares or the official date your shares are sold.

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Yee Woon
Yee Woon
Level 6. Master
Answered 3d ago

It is the day when you paid for your shares

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The settlement date is the date when the trade is final. Here is the full information from Investopedia: https://www.investopedia.com/terms/s/settlementdate.asp

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Choon Yuan Chan
Choon Yuan Chan
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Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 07 Dec 2019

The settlement date is the day that the transfer of cash or assets is completed. It is usually T+2 working days after the day the trade is complete. It is also when the stock is offically under your name

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Adelyn K
Adelyn K
Level 5. Genius
Answered on 05 Dec 2019

Settlement date is the date that you settle payment for the stocks that you bought! And yes, after you've paid for it, it will appear in your CDP account.

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Billy Ko
Billy Ko
Level 7. Grand Master
Answered on 09 Jul 2019

Hi! Settlement date is the date of which money has been transfered, hence it will be a couple of days after you've traded your stock.

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