Broken Date

DEFINITION of 'Broken Date'

A term used to describe forward and money market contracts, with delivery of currency and CDS, which takes place on a nonstandard date. Forward contracts usually quote periods like one month, three months, etc.

Forward contract maturity dates are either spot or fixed dates. Any date outside the quoted maturity date is said to be a broken date. Also referred to as Odd Date.


BREAKING DOWN 'Broken Date'

For example, a normal two-month forward contract from April 15 matures on June 15. An odd date would be a June 10 maturity.

RELATED TERMS
  1. Outright Forward

    A forward currency contract with a locked-in exchange rate and ...
  2. Forward Contract

    A customized contract between two parties to buy or sell an asset ...
  3. Payment Date

    The date on which a declared stock dividend is scheduled to be ...
  4. Front Month

    Used in futures trading to refer to the contract month with an ...
  5. Forward Exchange Contract

    A special type of foreign currency transaction. Forward contracts ...
  6. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
Related Articles
  1. Markets

    What's a Maturity Date?

    Maturity date is the final date when any remaining principal and any unpaid interest are due on a debt.
  2. Investing

    Introduction To Dividends: Dividend Dates

    A corporation's Board of Directors must declare all dividends. Four dividend-related dates are important to this process: Declaration DateThe declaration date is the date that the dividend ...
  3. Financial Advisor

    Target Date Funds Can Be Customized: Here's How

    Target date funds will likely become a permanent fixture in the marketplace for the retirement plan sector. Here's how they have recently improved.
  4. ETFs & Mutual Funds

    Target Date Funds: More Popular, Cheaper Than Ever

    How target date funds can help investors weather volatility when it comes to saving for retirement.
  5. Markets

    Crude Oil Prices: Comparing Future Price Vs. Current Market Price

    Discover the differences between oil futures market prices and oil spot market prices and what leads to the differences between the two.
  6. Retirement

    An Introduction To Target Date Funds

    Target date mutual funds can be an alternative to bonds and CDs for investors who do not wish to actively manage their savings. The reason: These financial products periodically reallocate fund ...
  7. Investing

    Dissecting Declarations, Ex-Dividends and Record Dates

    Understanding the dates of the dividend payout process can be tricky. We clear up the confusion.
  8. ETFs & Mutual Funds

    3 Strategies to Mitigate Currency Risk (EUFX)

    Discover the often overlooked risk known as currency risk, and learn three strategies to mitigate or eliminate it in your portfolio.
  9. ETFs & Mutual Funds

    UNG Vs. UGA: Comparing Gas ETFs

    Discover the main similarities and differences between two major energy sector ETFs: The United States Natural Gas Fund and The United States Gasoline Fund.
  10. Markets

    How to Trade Futures Contracts

    Futures is short for Futures Contracts, which are contracts between a buyer and seller of an asset who agree to exchange goods and money at a future date, but at a price and quantity determined ...
RELATED FAQS
  1. What is the difference between a forward rate and a spot rate?

    Learn about spot and forward contracts, how spot and forward rates are used for spot and forward contracts, and the difference ... Read Answer >>
  2. Why is the initial value of a forward contract set to zero?

    Discover why the initial value of a forward contract is set to zero; read about financial mathematics and exchange logic ... Read Answer >>
  3. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Answer >>
  4. What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Answer >>
  5. Over what time period should I be looking at the forward rate?

    Read about forward rates and forward prices, how they function, and which rates you should look at based on your own investment ... Read Answer >>
  6. If a company moves its dividend record date forward, does the ex-dividend date change ...

    When a dividend is declared, there are three important dates for investors: the dividend payable date, the dividend date ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center