A rolling settlement cycle is one in which trades executed on the trade date (T) are settled 'X' no. of days after. A rolling settlement is denoted in terms of 'T+X' days, where the settlement will take place 'X' business days after the Trade Date.
Trade and Settlement - What do they mean?
Trade consists of placing a buy or sell order through the stock exchanges and involves the successful execution of the same.
The scenario before rolling settlement was introduced in India
Examples of rolling settlement.
2. You buy 1 share of P Ltd for Rs. 1000 on Monday and sell the same on Tuesday for Rs. 1050.