What is unsettled cash and how long does it take?

Unsettled cash in stock trading refers to funds from a sale of securities that have not yet completed the settlement process. When you sell stocks, the proceeds from that sale become available as "unsettled cash" in your brokerage account. Settlement refers to the process of transferring the ownership of the securities and the corresponding funds between the buyer and the seller.

In the United States, the settlement period for most securities transactions is onetwo business days afterday after the trade date, commonly referred to as "T+1" (transaction date plus one days). During this time, the funds from a sale are considered unsettled cash.

Once the settlement period has passed, the funds become "settled cash," which can then be freely used to make withdrawals or currency exchanges.

It's also essential for traders to be aware of settlement times to avoid unintentional violations of trading regulations such as GFV.