Extended trade settlement

The settlement period is the time from the point of trade to when payment is needed. Extended trade settlements of up to 25 days are available.

About settlement periods

The settlement period is the time from the point of trade to when payment is needed. The normal settlement period for market trades in non-certificated shares is three working days. This is known as T+3, where T stands for 'Trading Day' and three is the amount of days before settlement is required.

The benefits of extended settlement

Extended settlement lets you choose a longer time before you either pay for a purchase or receive funds from a sale of non-certificated shares. When you trade online, you can choose from three, five, 10 or 20 working days for your trade to settle.

When you buy shares, this means you can sell the shares before full payment is needed. You only have to pay the difference in price (if any) or receive the balance owed to you.

When you use extended settlement with your trading limit (subject to status), you can react quickly to market conditions and trade without the need for cash in your account. Just make sure you have sufficient, cleared funds in your account on settlement day - which could be 20 days away.

Extended settlement is subject to availability and market conditions.

How does an extended settlement work?

With extended settlement periods of longer than T+10, retail service providers are not obliged to offer the displayed price and they may add a funding charge of up to 1%. Therefore your dealing representative canvases a number of retail service providers directly to acquire the best price available to you.

T+20 extended settlement at a glance

Trade online and settle your trades up to 20 working days later

• Take up to 20 days to settle trades online - choose from three, five, 10 or 20 working days
• Don't miss longer term opportunities - take more time to see how your shares perform
• Close a position within this period and simply take the profit or loss

Extended settlement up to T+25 is also available. Call our telephone trading service on 0808 208 4400 to find out more.