It may bring to mind images of the guillotine or maybe the height of Stalinist excess, but don't get excited; it's just a stock trading mechanism.
Automatic execution refers to a computerized program that completes trades without forcing people to input the information manually. This is key for automated trading, allowing people to create algorithms that react automatically to changes in the market and programmatically generate trades based on the situation.
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Finance: What is T+3?1 Views
finance a la shmoop what is T plus 3 doesn't that sound like a new Arnold
Schwarzenegger robot or uh like a new transformer Megatron or something yeah [police robot falls over]
maybe not so that T here is time as in days and the three is um you know the
number of days that is if you put in an order on Thursday with your stockbroker
on a three-day holiday weekend call it dunno Labor Day weekend and your [calendar]
particular purchase is a t +3 settlement type of purchase well it means that you [Settlement document]
will have transacted on that Thursday but then you need to wait three business [calendar]
days until that transaction is considered settled so in this case yeah
we threw curveballs at your head there there was not only a weekend to deal [batter dodges curve ball]
with but a holiday to a good one loved the hot dogs so had this been a t plus
one settlement while the trade would have been settled on that Friday if T
plus two then it would have settled no not Monday a holiday so doesn't count
it would have settled Tuesday but it's t plus three so it settles Wednesday why
all this lag in the era of lightspeed computers well in the olden days people [worm hole to computer chips]
waited for physical delivery of a dead tree with ink on it to consider a trade
settled than it used to be T plus five or five days
stocks three and bonds and money market funds a one two three days and something
like that but things moved around as time went by today however if you hear t
minus three well it may be time to climb into your bomb shelter [countdown on tv show]
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