# Settlement (T+1)

*Markets & Instruments — Finicade finance glossary*

Settlement is the moment cash and securities actually change hands, some time after the trade is agreed. US equities moved to T+1 — one business day — in 2024, halving the window in which a counterparty can fail and cutting the margin the system must hold against it. The trade-off is operational: less time to fix errors, fund currency conversions, or recall loaned stock, which shifts the burden onto foreign investors in other time zones.

**Also known as:** T+1, T+2, trade settlement, settlement date

**Related terms:** [Clearing House](https://finicade.com/glossary/clearing-house), [Custodian](https://finicade.com/glossary/custodian), [Accrued Interest](https://finicade.com/glossary/accrued-interest), [Counterparty Risk](https://finicade.com/glossary/counterparty-risk), [Stock Exchange](https://finicade.com/glossary/stock-exchange)

Source: https://finicade.com/glossary/settlement