Two steps, not one
Execution is the moment a buy order meets a sell order on the exchange. Settlement comes after: Misr for Central Clearing, Depository and Registry (MCDR) moves the shares to the buyer and the money to the seller. It follows "delivery versus payment": the shares move only if the money is there, and the other way round.
T stands for the trade day. The number after it is how many days until settlement.
The cycles by type of dealing
T+2The standard for centrally deposited listed shares on the main market: settlement two days after execution.
T+1For selling what you bought yesterday. Available only through brokerage firms licensed for it, on permitted securities.
T+0For buying and selling in the same session. Again only through licensed firms, on permitted securities, under FRA and EGX conditions.
T+3 and T+4T+3 for the OTC orders market, and T+4 for physical certificates not yet in the central depository.
An example in days
TSundayThe trade executes
T+1MondayPreparing to settle
T+2TuesdayShares to the buyer, cash to the seller
ExampleOn Sunday you buy 500 shares of an invented company, Marsa Shipping, at 8.40, so EGP 4,200. The trade executes on Sunday (T) and settles on Tuesday (T+2), assuming no holiday or non-working day falls in between: the shares land in your account and the 4,200 goes to the seller. To sell those same shares on Monday you need the sell-from-yesterday's-purchase mechanism (T+1), so ask your broker whether it is licensed for it and whether the stock is permitted.
Watch outNot every broker is licensed for same-session or next-day dealing, and not every stock is permitted. When you can use sale proceeds before settlement depends on your broker's policy, so ask before relying on it.
Follow your shares after settlement
Record your purchases in the portfolio to follow their value and your gain or loss.
Check yourself
1. You buy a main-market share on Sunday under T+2. When does it settle?
T is Sunday; T+2 is two working days later: Tuesday, if no holiday falls in between.
2. What happens at settlement?
Execution sets price and quantity; settlement moves ownership and money.
Summary
- Execution is the trade; settlement is moving shares and money afterwards through MCDR.
- The main market standard is T+2; T+1 and T+0 are mechanisms for licensed firms and permitted securities.
- Before selling a share you just bought, ask your broker which mechanism is available.