regulation · intermediate
Trade-to-trade
Trade-to-trade settlement requires every trade in a stock to be settled by delivery, with no intraday netting.
Stocks move to the T group or trade-to-trade segment under surveillance or liquidity reasons.
Intraday square-off is not available because each buy needs corresponding delivery settlement.
Margins and trading interest often change when a stock shifts into trade-to-trade.
Exchanges announce transfers into and out of the trade-to-trade segment.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.