day traders, page-35

I know it is not PRR BUT.....

Equity trades settle on a T+3 basis. Your broker buys them for you and then on T+3 the broker has to pay the market for them, you pay the broker. It is to the brokers discretion as to if and when they will contra (offset) sells against buys.

You buy monday, broker pays the market Thurs.
If you sell tuesday, the broker gets the cash from the market on friday. If the broker contra's your sell funds against the buy funds, they are out of pocket for one day. i.e. you didnt pay them on thurs but they paid the market. They get the sale proceeds on friday.

Dont confuse T+3 settlement with offsetting proceeds. Apples and oranges - no market rules around brokers netting off funds for their clients - its a service they choose to provide or not.

Once you have bought them - "T" date they are available to be sold. If you dont sell them before T+3 you will become a registered holder on T+3 (as long as the broker receives them from the market - but thats another story). Was in the industry for 15+ years and had to set the record straight.

Back to PRR!!