Why can't I withdraw funds immediately after selling stocks?

When a stock sell order is executed on the same day, the proceeds from the sale will be credited to your account on T+2 days in the U.S. stock market settlement system. Therefore, if you wish to withdraw this cash, you need to wait for 2 days before submitting a withdrawal request.

The actual stock settlement (i.e., the exchange of funds and stocks) will be completed on the second trading day after the transaction occurs. This is the standard settlement practice in the U.S. stock market, known as 'T+2'.

Here is a specific explanation:

  • Trade Day (T-day): This is the actual date when stock trading occurs. When you buy or sell stocks on T-day, the transaction price and quantity are determined.
  • Transaction Day + 1 (T+1): The next trading day following the transaction is referred to as T+1 day. On T+1 day, the transaction is settled, but the actual exchange of stocks and funds has not yet taken place.
  • Transaction Day + 2 (T+2): On the second trading day following the transaction (i.e., T+2 day), the settlement is ultimately completed, and the stocks and funds are formally exchanged between owners.

The "T+2" settlement standard is implemented to ensure smooth transaction processes, providing ample time for clearing and fund transfers among all market participants. This regulation also helps mitigate potential risks and ensures the stable operation of the market.