Settlement Period
a.k.a. Settlement cycle, T+2
The time between agreeing a trade and actually exchanging the money and assets.
In plain English
The time between agreeing a trade and actually exchanging the money and assets.
The settlement period is the gap between "deal!" and delivery. For most spot currency trades it is two business days (T+2). USD/CAD is a notable exception, settling one day after the trade (T+1). Stocks in the US moved to a one-day cycle in 2024.
Shorter is generally safer, because there is less time for something to go wrong between the two sides, but it also leaves less time to arrange funding.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.