DefinitionIntroductory
What is the time frame required by Regulation T for a purchase in a margin account to be paid after the trade date?
Regulation T requires that payment for a purchase in a margin account must be received by the close of business on the fifth business day after the trade date.
Key points
- Payment must be made by the fifth business day after trade date.
- If payment is not received, the broker must cancel or liquidate the transaction.
- An extension of time for payment can be requested under certain circumstances.
Source:Boston Institute of Finance Stockbroker Course: Series 7 and Series 63 Test Preparation· Types of Securities· p. 175–197
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Boston Institute of Finance Stockbroker Course: Series 7 and Series 63 Test Preparation
Boston Institute of Finance
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