Regular way transactions in government securities settle on the next business day or T+1. There are however times when either party to the transaction may request an alternative settlement. Other settlement options include:
- Next Day
- Seller’s Option
- Buyer’s Option
- RVP / DVP / COD
The settlement options available to investors in government securities are similar to those for corporate and municipal securities. However government securities that are traded on a when issued basis settle the day after the securities are available for delivery.
InvestingA settlement date is the day a security trade must be settled.
TradingIndex options are less volatile and more liquid than regular options. Understand how to trade index options with this simple introduction.
InvestingT+1, T+2, and T+3 denote the day settlement occurs on a transaction.
TradingThese two options have many similar characteristics, but it's the differences that are important.
InvestingThis annuitized payment setup should be arranged through impartial attorneys and tax agents.
InvestingThere are four key differences between American- and European-style options.
TradingLearn more about stock options, including some basic terminology and the source of profits.
Small BusinessCash on delivery, also referred to as COD, is a method of shipping goods to buyers who do not have credit terms with the seller.