What is settlement account?Settlement Account
A bank account linked to your securities account. Money for purchases is debited from it on settlement day, and money from sales is deposited into it on settlement day.
Learn “settlement account” in an animated lesson
- Taiwan Stock RulesDay Trading and the Halved Transaction Tax
A stock day trade means buying and selling the same stock on the same day and settling only the difference; the transaction tax is halved to 0.15%, but you still have to account for commission and the risk of not being able to sell.
- Taiwan Stock RulesT+2 Settlement and Settlement Default
Taiwan trades settle on the 2nd business day after the trade: the money for a purchase must be in your settlement account by then, and falling short is a settlement default with serious consequences.
Related terms
See how “settlement account” works for yourself with an animation you can drag and play.
Go to “Day Trading and the Halved Transaction Tax”