Orders and trading · updated October 21, 2026
What do T+1 and T+2 settlement mean
Settlement is when a trade is finalized: the shares land in the buyer's account and the money in the seller's. T+1 means one business day after the trade, T+2 means two.
How it works
In the US, stocks have settled T+1 since 28 May 2024. In the EU, including the Bucharest Stock Exchange, settlement is T+2, with a move to T+1 planned for October 2027. Settlement matters for dividends (who is a shareholder on the record date) and for withdrawing cash after a sale.
Worked example
You sell shares on a European exchange on Monday.
On a US exchange, the same Monday sale would settle on Tuesday.
Worth knowing
Most brokers let you use the cash from a sale straight away for a new purchase, but you can only withdraw it after settlement.
When settlement (T+1, T+2) can fool you
Dividends: if you buy too late, settlement does not finish by the record date and you do not get the dividend. Holidays: days when the exchange or the banks are closed do not count.
Related terms
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Questions about settlement (T+1, T+2)
What is T+2?
The trade date plus two business days. That is when the shares and the money actually change owners.
Why does settlement matter for dividends?
Because the dividend goes to whoever is a shareholder on the record date. That is why the ex-dividend date is set based on how long settlement takes.
These explanations are for information only. They are not a recommendation to buy or sell.
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