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Settlement account is an account that is used in Balance of Payment (BOP) accounting to keep track of central banks' reserve asset dealings with one other. The official settlement A/c keeps track of transactions that involve foreign exchange reserves, bank deposits, special drawing rights (SDRs) and gold.

An account containing money and/or assets that is held with a central bank, central securities depository, central counterparty or any other institution acting as a settlement agent, which is used to settle transactions between participants or members of a commercial settlement system.

Settlement can be defined as the process of transferring of funds through a central agency, from payer to payee, through participation of their respective banks or custodians of funds.

Settlement involves exchanging funds between the two banks, while clearing can end without any interbank money movement. In the clearing process, funds move between the recipient's or sender's bank account and their bank's reserves.

An official settlement account is a special type of account used in international balance of payments (BoP) accounting to keep track of central banks' reserve asset transactions with one other.

When you sell, cash has to settle (generally 1-3 business days), before it can be withdrawn or used to buy and sell a security. If you buy and sell with unsettled cash from a previous sale, before the settlement period is over, you will violate cash trade rules.

Following a trade of stocks, bonds, futures, or other financial assets, trade settlement is the process of moving securities into a buyer's account and cash into the seller's account. Stocks over here are usually settled in three days.