Q. What is the main difference between rolling settlement and account settlement in stock exchanges?
Answer: Rolling settlement ensures trades are settled T+1 or T+2, while account settlement involves periodic netting of positions
Notes: Rolling settlement means that trades are settled on a continuous basis, typically on T+1 or T+2 days (trade date plus 1 or 2 days). Account settlement involves periodic netting and is used less frequently in modern markets.