Final answer:
A contractual trade settlement policy means that the account is posted on the settlement date, which is when the trade contract is completed by delivery/receipt versus payment.
Step-by-step explanation:
A contractual trade settlement policy refers to when an account is posted on the settlement date. Specifically, this policy means that the account is debited or credited when the trade contract is completed by delivery/receipt versus payment. This is the point at which the legal ownership of the securities changes hands and the transaction is considered final. It does not necessarily dictate the method through which trade is settled, such as through the Depository Trust Company (DTC).