RE: RE: Nice end to the day ..22 Jul 2021 00:11
Thanks!
So still at least 1m shares being bought on buy now pay later then waiting on the deal. Could be a smart move.
Found this:
https://www.clearcapitalmarkets.co.uk/products/
Extended Settlement Trading
Clients of Clear Capital Markets have the ability to purchase shares on an extended settlement basis. This facility is known as a T+20 transaction. T+20 transactions offer our Clients the ability to use the current value of their shares and cash on account as collateral. This allows them to purchase shares on “credit” for 20 business days, giving them the opportunity to profit from short term volatility or to hedge existing positions.
This extended settlement period means the shares do not need to be paid for until the 20th business day after the purchase. If the shares are sold before the end of the 20 business days, the resulting profit of loss will be credited or debited from the client account, on the 20th business day after the initial purchase. In certain instances the T+20 can be ‘rolled’ before settlement for a further 20 business days, however there is a charge to do so.
Risk Warnings
? If you buy a share on a T20 extended settlement, you will receive the shares today but not have to pay for them for 20 business days.
? If you do not have the funds available to settle a T20 transaction within 20 business days, the shares will need to be sold at settlement.
? If the sale price is lower than the purchase price, you will be responsible for any shortfall.
? If you close a T-20 transaction after just 2 days whether in profit or loss, the funds will not be settled into your account until day 20 regardless of closing the trade early.
? A roll of a T+20 will occur standard rate of commission charges, a small difference between the buying and selling price and also stamp duty where applicable.
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