Trade Date
The date a trade is executed, distinct from when it settles.
Quick answer
The trade date is when a trade is executed, separate from settlement.
Definition
The trade date is the day a trade is executed, while the settlement date is when it is finalised and money changes hands. The two can differ by days. Tracking the trade date matters for records, taxes and understanding when exposure begins.
How It Works
- Settlement can come days later
- Exposure begins at the trade date
- Records and taxes use it
Trading Tips
1
Log the trade date on every ticket
2
Know the settlement lag for the instrument
3
Keep it separate from the maturity or value date
Related Terms
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