What is 'settlement'?
When you buy or sell shares, you enter a contract to exchange shares for cash with another party. Settlement is when that exchange takes place, and it occurs a set number of trading days after your order is filled.
All Hong Kong markets available through Selfwealth operate on T+2 settlement, meaning the exchange of shares and cash is completed 2 trading days after your order fills.
Do I need to have funds available when placing a 'buy' order?
Yes. The full value of your order, including brokerage, must be available in your Selfwealth cash balance before you can place a buy order for an international stock. Orders cannot be placed if your cash balance does not cover the total cost.
Example: You want to buy 1 lot of BYD (1211) at $380.00 per unit. One lot equals 500 units. Total funds required: (500 × $380.00) + $88.00 HKD brokerage = $190,088.00 HKD.
When will I receive my funds after selling shares?
When you sell shares on Hong Kong markets, brokerage and any applicable exchange fees are deducted from your sale proceeds. These fees are detailed on your contract note. Your remaining proceeds will be deposited into your cash account once settlement is complete.
Please allow one additional business day after settlement for the funds to appear in your Selfwealth cash account before withdrawing.
Example: You sell your shares on a Tuesday. Settlement occurs on Thursday, which is 2 trading days later (assuming no public holidays that week). Your funds will arrive in your cash account on Friday, at which point you are able to make a withdrawal.
Can I use unsettled funds to place a new trade?
Yes. Sale proceeds from an international stock can be used immediately to purchase another stock within the same international market. For example, funds from selling a Hong Kong stock can be used straight away to buy another Hong Kong stock.
These funds cannot be used to trade in a different market, such as United States or Australian shares, until settlement is complete and the funds have been transferred into the relevant currency.