T+1 Settlement: Counting Trade Settlement Dates After the Switch

Settlement is the day a trade actually completes: cash moves one way, the security the other. For decades US equities settled at T+2 — two business days after the trade. In May 2024 that shortened to T+1, and the smaller margin makes counting the date correctly matter more, not less.

"T" is the trade date, and you count trading days

The "T" is the day the trade executes; T+1 is the next trading day. That word matters: you skip weekends and exchange holidays, not just Saturdays and Sundays. A trade executed on a Friday settles the following Monday (assuming Monday is open) — one trading day later, but three calendar days.

Market holidays break the calendar shortcut

Trade the day before a market holiday and the +1 jumps the closed day. A Thursday trade before a Friday exchange holiday settles the following Monday. Because exchange holidays don’t always line up with bank holidays — and differ from one market to another — "just add a day" fails exactly when it matters.

Different instruments, different conventions

• US equities and corporate bonds: T+1.
• Many government securities: often T+1 already, sometimes same-day.
• Spot FX: commonly T+2, with its own holiday calendars on both currencies.

The convention rides with the instrument and the market, so the calendar you count against has to match the trade.

Count against the right calendar

The T+1 / T+2 Trade Settlement calculator projects settlement dates using NYSE/NASDAQ market-holiday rules, so a trade placed near a holiday settles on the day the market actually reopens rather than a naive next-day guess.

General information only — not investment or settlement advice. Confirm against your broker’s and market’s published calendars.