Trade Date
The date a trade is executed, distinct from when it settles.
The trade date is when a trade is executed, separate from settlement.
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
Log the trade date on every ticket
Know the settlement lag for the instrument
Keep it separate from the maturity or value date
Trade Date Example
Say you buy shares Tuesday with T+1 settlement. Trade date Tuesday fixes your price and tax year. Cash and shares move Wednesday. A New Year Eve purchase counts for the old year even as money moves in the new one.
How Traders Use Trade Date
Log trade dates precisely for tax lots and performance: settlement follows, exposure starts at execution. Corporate actions between the two dates still affect you, so know both.
Related Terms
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