How Buying, Selling, and Settlement Work

Trading cycle

Buying a stock is not magic — it is an order, a match, then settlement.

A trade has clear steps: order, price, confirmation, and settlement. Your broker or online platform sends your order to the market and confirms when it is matched.

Broker explaining stock orders on a tablet to a Filipino beginner
1

Place the order

Tell your trader, or enter it online. Online accounts usually need funds first before a buy order is accepted.

2

Order is matched

Your buy order matches a sell order at the same or better price. The trade is then confirmed.

3

Keep the receipt

You should receive confirmation or invoice. Online platforms show confirmations in real time.

What is T+2?

T+2 means trade date plus two clearing days. If a traditional broker trade happens Monday, settlement is generally by Wednesday before the deadline.

Do shares show right away?

Purchased shares may appear in your portfolio quickly, but formal clearing/settlement follows the market cycle.

Beginner reminder

Do not buy just because a stock is moving. Ask: “Anong company ito? Bakit ko bibilhin? Kaya ko bang hintayin? Ano ang risk?”