---
title: "FAQs about changing the US stock settlement cycle to T+1"
description: "Here you'll find quick answers to common questions about changing the US stock settlement cycle to T+1.1. What is the T+1 settlement cycle of US stocks?The transaction date (T) refers to the date on which a securities transaction is executed. The settlement date is the date on which the assets involved in the transaction settle. According to the new US stock T+1 settlement cycle regulations, most securities transacti"
slug: "mkavr8"
locale: "en"
region: "hk"
region_label: "Hong Kong"
url: "https://longbridge.com/hk/en/support/topics/usmarket/mkavr8.md"
updated_at: "2025-11-11T06:22:32.000Z"
category: "usmarket"
category_title: "US market"
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      url: "https://longbridge.com/hk/en/support/topics/usmarket/fractional-shares.md"
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      url: "https://longbridge.com/hk/en/support/topics/usmarket/Overnight20230922.md"
---

# FAQs about changing the US stock settlement cycle to T+1

[Table of Contents](https://longbridge.com/hk/en/support/toc.md)

Here you'll find quick answers to common questions about changing the US stock settlement cycle to T+1.

**1\. What is the T+1 settlement cycle of US stocks?**

The transaction date (T) refers to the date on which a securities transaction is executed. The settlement date is the date on which the assets involved in the transaction settle. According to the new US stock T+1 settlement cycle regulations, most securities transactions will settle on the next trading day (T+1) after the transaction date (T).

Example: If you make a transaction on Monday, it will settle on Tuesday (assuming Tuesday is not a stock market holiday).

[For details, please see the SEC bulletin](https://www.sec.gov/oiea/investor-alerts-and-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor).

**2\. When did the T+1 settlement cycle take effect?**

The T+1 settlement cycle for US stocks took effect on May 28, 2024, Eastern Time.

**3\. Which types of assets are affected by the T+1 settlement cycle of US stocks?**

The settlement cycle of products such as stocks, bonds, exchange-traded funds (ETFs), mutual funds, municipal securities, and real estate investment trusts (REITs) traded on US exchanges (if applicable) changed from T+2 to T+1. Click [here](https://www.dtcc.com/-/media/Files/PDFs/T2/T1-Product-List-Jan-2024.pdf) to see applicable types of assets.

Note: US stock options were already on a T+1 settlement cycle.

**4\. How does T+1 settlement affect my trading?**

There is no impact on trading. You can still perform intraday (T+0) trading in US stocks.

**5\. How is the interest of margin financing and short selling calculated after the switch to T+1?**

Interest on arrears resulting from margin financing and short selling will begin accruing from T+1 (previously T+2).

**6\. Are there any changes in the withdrawal rules after the switch to T+1?**

Due to the shortened settlement cycle from T+2 to T+1, funds from the sale of US stocks may be available for withdrawal as early as T+1. The withdrawal rules for Hong Kong stock-related assets remain unchanged, with the earliest withdrawal on T+2.

**7\. Are the auto-subscription and redemption rules for Cash Plus affected?**

The switch to T+1 only shortens the asset settlement time after a US stock trade. The auto-subscription and redemption mechanism for Cash Plus remains unchanged.

**8\. After US stocks switch to T+1, Hong Kong stocks still settle on T+2. How is account buying power calculated?**

The calculation of buying power remains unchanged.

**Disclosures**

*This article is for reference only and does not constitute any investment advice.*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).