Why this matters
Performance of obligations to deliver money and instruments within the prescribed time and manner.
Example
If an investor buys a hypothetical 100 shares at 300 roubles, the price amount is 30,000 roubles before additional expenses. But an operation displayed in an application does not necessarily mean that all transfers are finally complete. The ability to withdraw money or make a new transaction depends on the broker’s rules and settlement infrastructure.
Common mistake
The settlement period is not the same for all countries, instruments or trading regimes. In addition to market risk, there are non-performance risk and operational failures. For important payments, check the settlement date, fees and restrictions on fund availability. The term does not describe investment return and does not replace confirmation that the operation was actually completed.