© EasyEquities. EasyEquities is a product of First World Trader (Pty) Ltd t/a EasyEquities which is an authorized Financial Services Provider (FSP number 22588). All trades on the EasyEquities platform are subject to the legal terms and conditions to which you agree to be bound. The EasyEquities platform enables users to invest in securities which includes whole shares and fractional share rights (FSRs). EasyEquities acts as an agent for the issue of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions and all the economic benefits and risks associated with share ownership.
In respect of FSRs, EasyEquities acts as principal to a contract for difference issued to the investor, where the investor will have a contractual claim against EasyEquities to the economic benefits and risks associated with share ownership (price movements and dividends) without having ownership rights in the underlying share. Fractional share rights (FSRs) which are issued through a contract for difference, are an over the counter derivative. Unlike whole shares, FSRs do not carry any voting rights. As the investor makes further investments in FSRs and ultimately ends up with a whole share, the contract for difference is closed out and ownership whole share is delivered to the investor.
The availability of any share on the EasyEquities platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you.
The availability of any share on the browse shares page does not necessarily indicate any contractual relationship between EasyEquities and the listed company, or the payment of fees for services. Brand Logos are owned by the respective companies and not by EasyEquities. The use of a company’s brand logo does not represent an endorsem*nt of EasyEquities by the company, nor an endorsem*nt of the company by EasyEquities, nor does it necessarily imply any contractual relationship. Further investment disclosures are available on the EasyEquities website.
* Note exchange prices are delayed in accordance with regional exchange rules. South African prices are delayed by 15 minutes; North American prices are delayed by 15 minutes; Australian prices are delayed by 20 minutes.
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FAQs
Unsettled Funds are any funds in your account that are still being processed. These funds could be from a Deposit, a Sell Order, or Free Slices of Stock. Once the funds have settled, you will see the balance available for withdrawal.
What does unsettled cash mean? ›
Unsettled Cash is the cash you received from the sale of an investment on the platform. This cash cannot be withdrawn until it has gone through a settlement process.
How long does unsettled cash take to clear? ›
Prior to placing an order in a cash account (type 1), the investor is expected to be able to pay for the transaction in full. Using Unsettled Funds: Upon the sale of a stock, it takes 2 business days for the funds from that sale to settle (with options it is 1 business day).
What happens if you use unsettled cash? ›
If you trade using unsettled funds in good faith, you should be aware of potential settlement violations. Cash liquidation violation: A cash liquidation violation occurs when you don't have sufficient cash to cover the cost of a trade.
What is the difference between settled and unsettled cash? ›
A settled investment is an investment that's fully transferred between providers, meaning you can now choose to sell it. An unsettled investment means the transfer is still in progress.
How long does it take for a cash account to settle? ›
Cash Account
The settlement period is 2 business days after the trade date for stock transactions and 1 business day after the trade date for option transactions. There are cash account rules that investors need to follow while trading in a cash account.
How long does it take cash to settle? ›
When securities are sold, however, the cash is not instantly available. There is a settlement period of up to two days for most stocks, mutual funds, and ETFs; bonds typically have a slightly longer settlement period.
Can I withdraw unsettled funds? ›
Understanding Unsettled Funds
Unsettled Funds are any funds in your account that are still being processed. These funds could be from a Deposit, a Sell Order, or Free Slices of Stock. Once the funds have settled, you will see the balance available for withdrawal.
Can you spend unsettled cash? ›
Unsettled proceeds from existing long positions can be used to purchase additional securities as long as the new purchase is not sold prior to the settlement date of the original sale that generated the proceeds used to finance the purchase.
What time do unsettled funds settle? ›
When does settlement occur? For most stock trades, settlement occurs two business days after the day the order executes, or T+2 (trade date plus two days). For example, if you were to execute an order on Monday, it would typically settle on Wednesday.
Unsettled Amount means, as of any date, all amounts due in respect of any Collateral Loans that the Borrower has entered into a binding commitment to originate or acquire but has not yet settled.
Why does cash have to settle? ›
Key Takeaways
Derivative trades are settled in cash when the physical delivery of an asset does not take place upon exercise or expiration. Cash settlement has enabled investors to bring liquidity into derivative markets. Cash-settled contracts require less time and costs to deliver upon expiration.
Is it bad to trade with unsettled funds? ›
Don't sell securities that aren't yet held in your account. Consider margin investing for nonretirement accounts. Take note when buying a security using unsettled funds. You'll incur a violation if you sell that security before the funds used to buy it settle.
Do cash settlements settle same day? ›
Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure. Often occurs because a party is strapped for cash and cannot wait until the regular three-business day settlement.
How long does it take for Charles Schwab to settle funds? ›
How quickly you can get your cash when you sell an investment. When you buy or sell securities, the official transfer of the securities to the buyer's account or the cash to the seller's account is called "settlement." For most stock trades, settlement happens two business days after the trade is executed.
Why does it take 2 days to settle a trade? ›
The rationale for the delayed settlement is to give time for the seller to get documents to the settlement and for the purchaser to clear the funds required for settlement. T+2 is the standard settlement period for normal trades on a stock exchange, and any other conditions need to be handled on an "off-market" basis.
