receive versus payment

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Receive versus payment

An instruction that only cash will be accepted in exchange for delivery of securities.

Delivery versus Payment

A settlement procedure in which the buyer and the seller of a security agree that the seller will pay the buyer upon the security's delivery to the seller. This agreement is designed to reduce risk to both parties: if the delivery and payment do not occur at the same time there is a risk, however small, of theft by one party or the other. It is more commonly known as cash on delivery.

receive versus payment (RVP)

A settlement procedure in which a customer instructs that the delivery of a security will be made immediately upon receipt of proceeds from the sale of the security. Compare delivery versus payment.