# How long until I get money back?



## glk2000 (6 February 2011)

i just sold my shares on thursday, hoping my money would return either on thursday night or friday night, but the status of my shares is "unsettle" what does that mean and how long does it usually take for the money to settle back in my account so i can use it. as i want to take advantage of another share since its low.


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## pixel (6 February 2011)

*Re: how long till i get money back?*



glk2000 said:


> i just sold my shares on thursday, hoping my money would return either on thursday night or friday night, but the status of my shares is "unsettle" what does that mean and how long does it usually take for the money to settle back in my account so i can use it. as i want to take advantage of another share since its low.



 Settlement is T+3
You buy on Monday, your account is debited on Thursday.
You sell on Tuesday, it's credited on Friday. etc. For the days in between, the trade remains "unsettled".
That's how it works at the ASX.

But: If you have a half-decent broker, they will let you buy with the money you expect; that means if you sell shares on Monday for $50,000 then you can buy other shares worth $50,000 on the same day (Monday) - because the buy will also remain "unsettled".


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## glk2000 (6 February 2011)

*Re: how long till i get money back?*



pixel said:


> Settlement is T+3
> You buy on Monday, your account is debited on Thursday.
> You sell on Tuesday, it's credited on Friday. etc. For the days in between, the trade remains "unsettled".
> That's how it works at the ASX.
> ...




I'm trading myself, so I won't be allow to use the unsettle money myself? How come a broker have such power to allow that?


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## tothemax6 (6 February 2011)

*Re: how long till i get money back?*



glk2000 said:


> I'm trading myself, so I won't be allow to use the unsettle money myself? How come a broker have such power to allow that?



Firstly, understand what settlement is. When you have 'sold' the shares, the guy you sold them to does not need to pay immediately. He has 3 days to pay. After 3 days, you have the money in your account. The broker does not set this settlement rule, this is set by the exchange. 
However, the same rule applies to when you buy shares. You do not need to pay for them for 3 days. Whether or not your broker allows you to buy shares without money in your account at the time of purchase, depends on your broker and its purchase rules. Comsec, to my knowledge, allows you to buy shares with an empty balance (to a certain amount), giving you time to come up with the money. CMC markets, does not, but it does appear to count unsettled funds as usable for current purchases.

Of course DYOR, and read your brokers service rules.


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## glk2000 (6 February 2011)

*Re: how long till i get money back?*



tothemax6 said:


> Firstly, understand what settlement is. When you have 'sold' the shares, the guy you sold them to does not need to pay immediately. He has 3 days to pay. After 3 days, you have the money in your account. The broker does not set this settlement rule, this is set by the exchange.
> However, the same rule applies to when you buy shares. You do not need to pay for them for 3 days. Whether or not your broker allows you to buy shares without money in your account at the time of purchase, depends on your broker and its purchase rules. Comsec, to my knowledge, allows you to buy shares with an empty balance (to a certain amount), giving you time to come up with the money. CMC markets, does not, but it does appear to count unsettled funds as usable for current purchases.
> 
> Of course DYOR, and read your brokers service rules.




Now I understand, thanks guys but just one last question, since there is three days to settle, what if after the three days the buyer does not have the money? What happens then? I would also be stuck too if I was to buy to settle because I won't get the money either.


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## Wysiwyg (6 February 2011)

*Re: how long till i get money back?*



glk2000 said:


> Now I understand, thanks guys but just one last question, since there is three days to settle, what if after the three days the buyer does not have the money? What happens then? I would also be stuck too if I was to buy to settle because I won't get the money either.



The buyer's broker will deal with the late payment issue. I think the broker coughs up the spondoolies and pursues their own customer for the Arthur Ash owed . You are not dealing direct with another person so you will be paid from the bottomless pockets.


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