When yousell a stock, you have to wait two business days until thetrade settlement datebefore you canwithdrawyour cash. You can, however, use the proceeds from a sale immediately if you are buying another security.
Trade settlement dates are determined by market-wide rules and are based on security type, plus a set number of business days after the trade date. Settlement means that a security has fully transferred to the buyer and that the seller has received the cash. (Settlement dates apply to both sides of the transaction).
TypicalSettlement Dates:
Stocks, majority of ETFs and mutual funds: generallyT+2(day of trade plus two business days)
Bonds: generally vary betweenT+1andT+3
Money market funds: generallyT+1
GICs: generallyT+0
Options and some ETFs:T+1
For example, if yousell a stockon a Monday ("T"), you'll have to wait until the settlement date ("T+2") on Wednesday (assuming there are no exchange holidays) if you want to withdraw the cash. See another opportunity to buy? No need to wait for the trade to fully settle to make another purchase.
If you are buying, once your order's been filled it's important to make sure adequate funds are available in your account on the settlement date (and in the right currency), to avoid unforeseen charges.
To check settlement dates,refer to yourActivitypageunderPlace an Order.Settlement dates for your trades are displayed on the first business day after your order has been filled or executed. Settled cash is also reflected in "Available to Transfer" on yourTransfer Fundspage.
For Margin accounts, you can check "Available Margin Excess" to see how much cash you have available to withdraw or invest. Look for it on yourTransfer Fundspage.
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