Tag Archives: margin

Pershing: Next Day Settlement

Many Mutual Fund companies now settle T+1 (trade date plus one).

While this is an advantage when selling to send clients cash, this may be a disadvantage when buying because the cash to pay for a trade must be there the day after the trade is placed, instead of three days later as it was in the past. If an account does not have sufficient cash to cover the trade the account may be charged interest or face a margin violation. Continue reading