Trading Rules
U.S. stock market trading sessions
Pre-market and after-hours trading quote update period
Do U.S. stocks support day trade
Is there a limit on price fluctuations for US stocks
Minimum trading unit for U.S. stocks
What is off market orders
Why the sell order price of U.S. stocks is lower than the best ask price, but can not be traded
What is the settlement rule for U.S. stocks
Extended trading risks
Other Notes on Placing US Stock Orders
What is penny stock
US Stock MV and P/L Calculation
Why use pre and post-market prices to calculate the market capitalization and profits and losses of stocks during respective period
Why my stock is banned from trading during pre-market trading session
Arrangement for delay or failure of trading system
Why should the placement of market orders be restricted
Withholding Tax on Publicly Traded Partnerships (PTP) Securities and Trading Arrangements
U.S. market overnight trading
Risk and Important Information relating to Trading in Over-the-counter ("OTC") Securities or Derivatives
US Stock Moving to T+1 Settlement
Order Type
US Stock Option
US Index Option
ETF
Stock Yield Program
Fractional shares trading in the US stock market
Dividend Reinvestment Plan
The transaction date, or T, is the date on which the operation of buying or selling securities is executed. The settlement date is the date on which the transaction is settled, i.e. the securities or funds are officially transferred. Under the new T+1 settlement cycle, all applicable securities transactions from US financial institutions will settle in one business day after their transaction date.
To learn more, click here.
Example
If you execute a transaction on Monday, it will settle on Tuesday (assuming Tuesday is not a holiday).
The new T+1 settlement cycle will take effect from May 28, 2024.
The T+1 settlement cycle will apply to the same types of securities transactions covered by the T+2 settlement cycle. These include stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships traded on US exchanges. For the T+1 impacted product scope, click here.
*Note: The T+1 settlement cycle already applies to US stock options.
The new T+1 settlement cycle does not impact your trading. You can still engage in day trade.
The accrual date for margin interest will transition from two business days after the transaction date (T+2) to one business day after the transaction date.
You will have quicker access to your funds with the shortened settlement cycle for US stocks. For Hong Kong stocks, however, the settlement cycle remains T+2, meaning that you can withdraw your funds when they are settled two business days after the transaction date.
The new T+1 settlement cycle means a shortened settlement process for US stocks and does not impact the SmartSave mechanism.
The new T+1 settlement cycle does not impact the calculation of buying power.