The trade date is the day you place a buy or sell order and it executes. The settlement date is the day ownership and money actually change hands — when the buyer's cash and the seller's shares officially transfer. These are rarely the same day: settlement happens on a fixed number of business days after the trade, known as the settlement cycle and written as "T+n."
Until your trade settles, you technically don't have full legal ownership of the shares (or the cash from a sale) even though the trade already executed. This matters for things like dividend record dates, using sale proceeds to fund a new purchase, and avoiding "good faith violations" or "free-riding" violations in a cash brokerage account.
The U.S. settlement cycle has gotten shorter twice in recent decades: from T+3 to T+2 in September 2017, and from T+2 to T+1 on May 28, 2024. The SEC pushed the most recent change to reduce the credit, market, and liquidity risk that builds up in the gap between trade and settlement — a gap made more visible by the 2021 meme-stock volatility, when clearinghouses demanded huge collateral spikes from brokers during the T+2 window.
Canada's TSX, along with Mexico and several other North American markets, moved to T+1 on the same date to stay synchronized with U.S. markets and avoid cross-border settlement mismatches. Most other major markets — including the UK's LSE and the EU — still settle T+2 as of this writing, though a move to T+1 has been proposed for both.
| Security type | Typical cycle |
|---|---|
| U.S. common stocks & ETFs | T+1 |
| U.S. corporate bonds | T+1 |
| Listed options | T+1 |
| U.S. Treasury securities | T+1 (already was, before the 2024 change) |
| Municipal bonds | Commonly T+2, depending on the issue |
| Mutual funds | Usually T+1, but varies by fund company |
| Money-market funds / some government securities | Often T+0 (same day) |
| Non-U.S. markets (UK, EU, etc.) | Commonly still T+2 — confirm per market |
This table is a general reference, not a complete or authoritative list. Settlement cycles are set by exchange and regulatory rules that can change; confirm the cycle for any specific security with your broker before relying on it.
This calculator counts forward using the actual NYSE market holiday calendar, computed each year, not a generic list of U.S. federal holidays. The two calendars overlap but are not identical: the NYSE is closed for Good Friday, which is not a federal holiday, but stays open on Columbus Day and Veterans Day, which are federal holidays. When a market holiday falls on a Saturday, it's observed the preceding Friday; when it falls on a Sunday, it's observed the following Monday.
NYSE holidays used in this calculator: New Year's Day, Martin Luther King Jr. Day, Washington's Birthday (Presidents' Day), Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Frequently Asked Questions
What does T+1 settlement mean?
T+1 means a trade settles one business day after the trade date. If you buy or sell a U.S. stock on Monday, the trade settles on Tuesday (assuming Tuesday is a trading day). The U.S. moved most securities from T+2 to T+1 settlement on May 28, 2024.
Why did U.S. stocks move to T+1 settlement?
The SEC shortened the standard settlement cycle from T+2 to T+1 for most U.S. equity, corporate bond, and municipal bond trades effective May 28, 2024, to reduce counterparty risk and the amount of collateral required between trade and settlement. Canada's TSX and several other North American markets moved to T+1 on the same date to stay aligned with U.S. markets.
Does this calculator use business days or NYSE trading days?
It uses the NYSE trading holiday calendar, not generic business days or U.S. federal holidays. The NYSE calendar is different from the federal holiday calendar — for example, the NYSE closes for Good Friday (not a federal holiday) but stays open on Columbus Day and Veterans Day (which are federal holidays but not market holidays).
What happens if the trade date or settlement date falls on a weekend or market holiday?
Settlement counting only advances on days the market is open. If the trade date itself is a weekend or NYSE holiday, no trade would actually execute that day since markets are closed. The calculator still counts forward from the date you enter, skipping weekends and NYSE holidays to land on a valid trading day for settlement.
Do all securities settle on the same cycle?
No. Most U.S. equities, ETFs, corporate bonds, and options settle T+1. U.S. Treasury securities have long settled T+1. Municipal bonds are commonly T+2 depending on the issue. Some money-market and government securities can settle same-day (T+0). Always confirm the applicable cycle with your broker or the security's prospectus.