In relation to contra trading, it refers to the period of time (grace period) within which traders do not need to fork out cash following a transaction. In other words, it constitutes the time for settlement of a trade, where funds will not be tied up for a specific transaction during that time, and instead can be channeled to some other venues for more profitable trades. Typically, contra periods are three days after the trade is executed (T+3).
June 12, 2024
