T+1
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Trade date plus one business day |
|---|---|
| Categories | Business & Finance |
T+1 stands for Trade date plus one business day, a stock market & investing abbreviation.
Settlement cycle in which a securities trade is completed, with cash and securities exchanged, one business day after the trade date. US, Canadian and Mexican stock markets moved to T+1 in May 2024.
Example: Under T+1, shares you sell on Monday settle on Tuesday, and the cash can be withdrawn then.
Usage notes
Shorter settlement reduces counterparty risk and margin requirements, a goal that gained urgency after the January 2021 meme-stock volatility. The US moved from T+3 to T+2 in 2017 before adopting T+1, and the UK and EU have announced plans to follow.
Related abbreviations
More stock market & investing abbreviations
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- SL – Stop-loss
- SMA – Separately managed account
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- SRI – Socially responsible investing
- TER – Total expense ratio
- TP – Take profit
- TSE – Tokyo Stock Exchange
- TSX – Toronto Stock Exchange
- UIT – Unit investment trust
- VIX – Cboe Volatility Index