BizTerm Definition
Rolling Settlement
Full Definition

A system of settling exchange transactions where each trade has to be paid for in full at the end of the settlement period. For example a trader buys a $100,000 block of shares on Monday and the exchange is trading on a 10 day settlement period. The trader must pay in full the $100,000 by the second following Friday. The key feature for the trader is that she must find the full cash value of the transaction even if the shares have already been sold-on before the settlement day. The alternative settlement method is called trading account settlement.

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