Unsettled funds are the proceeds from ystocks sold. Because settlement for trades is not instant, exchanges follow a rolling settlement cycle.
Here is how the process works:
- Same-day trading: When you sell shares, you can use the entire proceeds for further trades on the same day.
- The settlement timeline: Funds from your sale proceeds are settled in your trading account after 1 trading day.
- Settlement holidays: If the T+1 day coincides with a settlement holiday, your profits will be available on the next trade settlement day.