Trade Settlement Times
On dub, trades follow the standard T+1 settlement cycle:
- T+1: One trading day from the date the trade was executed
- "T" represents the transaction date, and "+1" represents one trading day after
National holidays and weekends do not count as business days for settlement purposes.
Example:
- If you buy or sell a stock on Monday, the trade will settle on Tuesday
- If you buy or sell a stock on Friday, the trade will settle on Monday (the next trading day)
Understanding the Difference Between Available Funds and Settled Funds
It's important to understand the distinction between different types of funds in your account:
Available Funds
- Funds that can be used to purchase securities
- May include unsettled funds from recent sales or deposits
- dub often provides buying power for unsettled deposits as a courtesy
Settled Funds
- Funds that have completed the full settlement process
- Can be withdrawn to your bank account
- Not subject to trading restrictions
Key Points About Settlement
Reinvesting After Selling
- After selling securities, you can reinvest the proceeds immediately
- However, if you sell the newly purchased securities before the original sale settles (T+1), you may incur a Good Faith Violation
Withdrawals and Settlement
- Important: Even if your trades have settled (T+1), you cannot withdraw funds if your original deposit has not fully settled (which takes up to 5 business days)
- Example: If you deposit $1,000 on Monday, buy stock Tuesday, sell stock Wednesday (which settles Thursday), you still cannot withdraw until your original deposit settles (typically the following Monday)
Need Help?
If you have any questions or need assistance during the account opening process, please contact us at support@dubapp.com