TRADING GLOSSARY
Settlement
Settlement is the completion of a trade’s obligations through the transfer of cash, assets or both. The timing and method depend on the instrument and market; cash-settled contracts involve a payment rather than delivery of the underlying asset.
EXAMPLE
In a hypothetical share purchase, settlement occurs when the buyer receives the shares and the seller receives payment through the relevant settlement arrangements.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure