Salam
I just wanted to know if I bought a stock on Monday afternoon at 3pm. How exactly does the t+2 day settlement period work. Do I have to wait till Wednesday at 3pm before I can sell the share or anytime on Wednesday
Walikum as Salam brother,
The time you bought the stock does not matter, it is the day which matters. Time is irrelevant, whether it is bought 2 minutes after market opened or 2 minutes before market close.
As example, if you bought share on Monday, the earliest you can sell it is on Thursday as soon as the market opens.
T+2 =
T : Monday
+2 :(Tuesday, Wednesday)
Note : all the above days have to be a working day
Hope this helps.
Allah knows best
With Regards
Ahmed Haq
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I asked my broker ameritrade and they confirmed what i read on investopedia.
If you buy a stock on Monday(be it during after market), it settles on Wednesday (start of day). So you can sell it when market opens on Wednesday.
If you personally want to be extra careful, do it after few hours of market start.
@jbiqbal thanks for sharing your correspondence with ameritrade as their process might be different to other brokers but I would prefer the safest option which is an industry practice of T+2 as explained above.
As the main objective is to follow the hadith of not selling something which you don’t own, hence following the above methodology should remove any improbability or doubt of your ownership.
Allah knows best.
With Regards
Ahmed Haq
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Exactly. Its imp to be sure. But as per my research t+2 means Wednesday everywhere. My ameritrade conversation was to confirm that thing. So do research a bit more. Check online and from your broker too. Because if its Wednesday for sure, you can save one day without violating shariah. But ofcourse do what satisfies you.
@Mufti_Faraz_Adam Can clear it further.
JazakALLAH
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Jazakom Allah khayran for raising the matter
I did the same inquiry from trading 212
They don’t send notification when shares are settled and like that the problem is solved .
Interactive broker hold them on behalf of them and they don’t know exactly but confirmed it is max 48h from order is exucted
But honesty even waiting 48h i am still worried about technical broblem…
Thank you brother for clarification please do you know if i buy the same shares one day after like 200 shares after buying 120 shares so on t+2 can i sell 120 and one day after i can sell 200 shares
But how they know that i want to sell the settled shares as my broker allow me to sell immediately after buying and i got 320 shares mixed together
Asalamualaykum brother,
Do you set a stop loss before T+2? Any information you can share on that would be really helpful. JazakAllah khairan.