Delivery date

The delivery date, also known as the settlement date, is the day on which a stock, option, or bond trade must be settled, or finalized.

For stocks, the delivery date is three business days after the trade date, or T + 3. For listed options and government securities, it's one day after the trade date, or T + 1.

If you're the seller, your brokerage firm must turn over the security by the delivery date or transfer the record of ownership to the account of another of its clients who has purchased the security. That process is called netting.

If you're the buyer, you must provide payment by the delivery date so that the transaction can be finalized. You may pay through a margin or money market account with the brokerage firm, by check or electronic transfer, or by instructing your broker to sell other investments.