T plus 3

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Definition of 'T plus 3'

T plus 3 is shorthand for "trade date plus three days." When buying securities, investors must settle their security transactions in three business days. This is an SEC rule.

When you buy securities, the brokerage firm must receive your payment no later than three business days after the trade is executed. When you sell a security, you must deliver to your brokerage firm your securities certificate no later than three business days after the sale.

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