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It's when ownership passes from the seller to you, and you pay the balance of the sale price. The seller sets the settlement date in the contract of sale. As a general rule, property settlement periods are usually 30 to 90 days, but they can be longer or shorter.

A new issue or IPO settlement date represents the day during which new issue investors pay for, and take ownership of, a previously allocated new issue.

Generally, for bonds and stocks, the settlement date is two working days from the date of execution (T+2). It is (T+1) in the case of government securities and options.

A transaction date represents the date on which a transaction occurs whereas the settlement date is the day on which the transaction is finalised, that is, the ownership of the security is transferred to the buyer.

For example, suppose you placed an online trade order on Monday, June 8, and it was executed on the same day. So, Monday, June 8, becomes your trading date. Then the settlement date will be Thursday, June 11, three days after the trade date and represented as T+3, where T is the trade date.

The settlement date is the date on which a trade is deemed settled when the seller transfers ownership of a financial asset to the buyer against payment by the buyer to the seller. The settlement date for securities ranges from one day to three days, depending on the type of security.

The settlement date for stocks and bonds is usually two business days after the execution date (T+2). For government securities and options, it's the next business day (T+1). In spot foreign exchange (FX), the date is two business days after the transaction date.