What are unsettled funds?
What are unsettled funds? Find a clear answer in this FAQ by 021 Trade.
Unsettled funds refer to the value of profits earned or shares sold that have not yet been fully settled in your trading account.
Example:
Suppose you sell shares of a company on Monday (T day). In India, the settlement cycle followed by exchanges like the National Stock Exchange of India and BSE Limited is T+1. This means the sale proceeds will be settled and available in your trading account on Tuesday (T+1 day).
However, if Tuesday is a settlement holiday, the funds will be credited on the next trading day (Wednesday). Until the settlement is completed, the amount expected from the sale will be considered unsettled funds.
