The risk that one party will fail to deliver the terms of a contract with another party at the time of settlement. Settlement risk can be the risk associated with default at settlement and any timing differences in settlement between the two parties. This type of risk can lead to principal risk.

The payment of an outstanding account, invoice, charge, etc.

The period of time between the settlement date and the transaction date that is allotted to the parties of a transaction to satisfy the transaction's obligations.

Conclusion of a transaction where what was bought is delivered to the buyer, and payment for which is made to the seller.