What is Settlement?
Settlement is the process that occurs after a buy or sell trade is executed on the stock exchange. Simply put: it's the moment when money is actually transferred from your account (if buying) or to your account (if selling) and shares are officially transferred.
The letter T stands for Trade (the day the transaction is executed), and the number after it represents the number of business days the settlement takes.
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Settlement Types
T+0: Buying and selling in the same session
- You buy and sell the stock within the same trading session
- Not available for every stock: the exchange publishes a list of stocks eligible for same-session trading
- Not all brokers offer this option
T+1: Next Business Day Settlement
- Funds are settled on the next business day after execution
- Ask your broker whether it is available
T+2: Standard Settlement
- This is the default system in the Egyptian Exchange
- Funds are settled two business days after execution
- This happens automatically if you don't specify a settlement type
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Practical Comparison
| Type | When are funds settled? | Note |
| T+0 | Same session | Only stocks on the same-session trading list |
| T+1 | Next business day | Depends on your broker |
| T+2 | After 2 business days | The default |
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Important Notes
What decides the difference?
- The stock itself: same-session trading is allowed only for stocks on the exchange's list
- Your broker: not every broker offers every type
- Commission: set by your broker, and it may differ between types
What happens during the settlement period?
- Shares are transferred from the seller's account to the buyer's account through Misr for Central Clearing, Depository and Registry (MCDR)
- Funds are transferred simultaneously (Delivery versus Payment, DVP)
Before you choose
- Know when you will need your money
- If you want to buy and sell in the same session, check that the stock is on the list
- Ask your broker which types are available and the actual commission for each
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Summary
Settlement in the Egyptian Exchange comes in 3 types: T+0 (same session), T+1 (one day) and T+2 (two days). T+2 is the default that applies automatically, and T+0 is available only for stocks on the same-session trading list.