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What does “unsettled funds” mean?

Last updated: 12 August 2026

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When you sell a security, the proceeds from that sale are known as “unsettled funds” until the cash is officially transferred to the seller’s account. Both stock and options trades take 1 business day (the day of the trade plus 1 day) for the funds to settle.

For example, assuming there are no market holidays, a sale on a Monday will settle on Tuesday.

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