When a seller of a security has physical possession of the security they may need additional time to delver the certificate to complete the transaction. In this case the seller may request that the transaction be executed on a seller’s option basis. The trade must be clearly identified as being a seller’s option settlement at the time the order is executed and the buying party must agree to the seller’s option settlement terms. the first day that a trade may settle under a seller’s option is 1 day after the the regular way settlement for the security. You are likely to see a number of questions relating to the operation aspects of trade execution and settlement on your exam. Be sure you have master these concepts with our textbooks, exam prep software and video training classes. Pass your exam or your money back with our GreenLight guarantee.