What makes up my Funds Available for Trade (FAFT)?
Funds Available for Trade (FAFT) is made up of Available Funds in your Cash Account plus unsettled sell trades minus unsettled buy trades and open buy orders.
Your FAFT also depends on the settlement date of your trades.
The settlement period outlines the number of days following a trade on which settlement will occur:
- Australia: T+2 days (trade day + 2 days)
- USA: T+1 day (trade day + 1 day)
- UK: T+2 days
- Germany: T+2 days
- Hong Kong: T+2 days
Your sell trade proceeds are available to you to fund buy orders or trades as long as settlement date of the sell is on or before the settlement date of the buy.
For example:
You sell Australian shares on Monday (T+2).
- The sale proceeds are immediately included in FAFT, so you can place a new buy order (for Australian UK , German and Hong Kong markets) on Monday.
- However, as the sale proceeds from the Australian market are settled in 2 days and the US market settles in 1 day, the funds from the sale can only be used when there is 1 day left in settlement, which occurs from Tuesday onwards. This ensures that the US order is fully funded.