---
title: "What is T+n settlement? | IslamicOpenFinance™"
description: "Settlement a set number of business days after the trade date: T+1 means one business day later, T+2 two business days later."
url: https://islamicopenfinance.com/glossary/t-plus-n/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Calendar, settlement and markets](https://islamicopenfinance.com/glossary/#calendar)

Calendar, settlement and markets

# T+n settlement

Settlement a set number of business days after the trade date: T+1 means one business day later, T+2 two business days later.

T+n describes the settlement cycle of a trade: settlement takes place n business days after the trade date, T. Securities markets have been shortening their cycles, and some have moved from T+2 to T+1. Because n counts business days, the weekends and holidays of each relevant market, including Hijri-dated holidays, determine the actual settlement date for sukuk and shares.

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Business day** A day on which banks, markets or payment systems in a given place are open; the unit for due dates and settlement.](https://islamicopenfinance.com/glossary/business-day/) [**Value date** The date on which a payment or transfer is due to take effect and funds become available to the receiver.](https://islamicopenfinance.com/glossary/value-date/) [**Weekend convention** Which days count as the weekend in a market; it varies across Islamic-finance markets and drives settlement and due dates.](https://islamicopenfinance.com/glossary/weekend-convention/) [**Settlement finality** The point at which a transfer becomes irrevocable and unconditional, so it cannot be unwound even if a participant fails.](https://islamicopenfinance.com/glossary/settlement-finality/)

**Calendar, settlement and markets**

1. [Hijri calendar](https://islamicopenfinance.com/glossary/hijri-calendar/)
2. [Lunar month](https://islamicopenfinance.com/glossary/lunar-month/)
3. [Hawl](https://islamicopenfinance.com/glossary/hawl/)
4. [Moon sighting](https://islamicopenfinance.com/glossary/moon-sighting/)
5. [Business day](https://islamicopenfinance.com/glossary/business-day/)
6. [Value date](https://islamicopenfinance.com/glossary/value-date/)
7. [Settlement finality](https://islamicopenfinance.com/glossary/settlement-finality/)
8. [Delivery versus payment](https://islamicopenfinance.com/glossary/delivery-versus-payment/)

[All 221 terms](https://islamicopenfinance.com/glossary/)