Cryptocurrency Settlement

Cryptocurrency Settlement

What makes tastytrade unique is that you can trade multiple asset classes all on one platform. However, unlike stock, options, and futures, cryptocurrencies trade 24/7/365. Since digital assets do not have a traditional trading session, settlement can get a little convoluted. To help break down the complicated nature of crypto settlement, we’ve gone through it all below!

When does a crypto trade settle?

Crypto settlement is relative

Zero Hash, our cryptocurrency custodian, handles all cryptocurrency trades and positions. When establishing and holding a crypto position over multiple days, the cost of the position sweeps (transfers) from Apex Clearing to Zero Hash after opening the position. Then, after liquidating a crypto position, the proceeds sweeps from Zero Hash to Apex Clearing, where your cash is held. To learn more about the separation of accounts, please click here

Considering the 24-hour market and the separation of accounts, the time it takes for cash from a liquidated crypto position(s) to settle and become available for withdrawal can vary depending on the day. Liquidated crypto positions will be accounted for in an account's options and stock buying power upon closing a position, but will have to go through settlement before reflecting in your available crypto buying power. Closing cash sweeps between Apex and Zero Hash can only occur on weekdays when banks are open.

Settlement timeline for closing crypto trades

Since cryptocurrencies trade 24/7/365 and do not take a break like stock, options, and futures, we (tastytrade) have set up a time to settle crypto trades. Settlement times (T+#) listed below are calendar days rather than trading days because of the 24-hour market. When closing a crypto position on a bank holiday, you must add +1 calendar day for settlement after closing a crypto trade. Times and days listed below are based on Central Time (Chicago Time).

*Settlement from closing crypto trades is subject to additional calendar days due to the weekend.

For example, if a closing crypto trade was placed on Wednesday before midnight then funds would be settled Friday morning (two days from the trade date). After the position is liquidated on Wednesday funds are then wired between ZeroHash and Apex on Thursday, and then come Friday morning you will see that cash amount available in your crypto buying power as well as your cash available to withdraw.

Where can I find my available crypto buying power?

An account's available crypto buying power can be found in the platform's balances tab.

Animated example of effective crypto buying power location

Settlement Procedures when Day Trading Crypto

Cryptocurrencies are not subject to day trading rules as they are not securities. Proceeds from any cryptocurrency day trades done within a settlement period (net any losses) are available to trade other asset classes. If the position was opened and closed on the same day then there would be an immediate update in effective crypto buying power, if a crypto position was held overnight and then closed it would need to settle first before updating to your crypto buying power.