Fund Settlement refers to the transfer of funds from the Buyer of a Stock to the Seller of a Stock.  It is also a term used in funds transfers and in that context represents when the funds arrive at the receiving bank from the sending bank.  

Stock trades settle 2 business days following the trade date (T+2).  So, for two days after the sale of a security, the funds are considered “Unsettled”.  Bear in mind the rules regarding trading on unsettled funds to avoid potential restrictions on your account.

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