# Settlement day confusion



## iownasx (5 February 2009)

hi all, i have a few questions.

i've noticed that after a trade, commsec determines a settlement day about five days from the point of trade.

my questions are:

1. are there any brokers that have a shorter settlement day?
2. suppose i just bought some shares, can i sell them before the settlement day has arrived? i understand this is day trading, and must be therefore possible. however when i try to sell the shares, commsec says "you must own the shares" and that "naked short selling" is not allowed. what does this all mean?

thanks for any assistance.


----------



## nunthewiser (5 February 2009)

iownasx said:


> hi all, i have a few questions.
> 
> i've noticed that after a trade, commsec determines a settlement day about five days from the point of trade.
> 
> ...




Usually settlement is 3 days unless public holiday etc etc

you can sell your shares the moment you buy them..... nothing to do with "naked shorts"


----------



## shaunQ (5 February 2009)

Just to add some more detail for you...

On the end of third day T3 (excluding holidays in Sydney and weekends) , around 8pm or 10pm or so they will pull the money from your account.

If you have not sold your shares the "trading" day after you purchased them, ie T1 -  you will be expected to have the money on T3.

Selling on T2 will still make you liable on T3.

If you sell on T1 they will only take or give you the difference of the trade, ie. loss or profit from sale. But don't consider this as an opportunity to trade more than your account, as stocks get suspended all the time which will trap you in past the T2. (or long term such as Oz Minerals - since Nov or so). 

I think most online brokers work a similar fashion, but may require the money in there at the time of trade.

You can sell them immediately after buying them. You must have entered the wrong amount that you had, or the wrong code when you tried to sell.


----------



## iownasx (5 February 2009)

cool, thanks heaps.


----------



## virago (28 July 2009)

watch for Speeding ticket, trading halt.


----------

