Regular-Way Trade - RW

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DEFINITION of 'Regular-Way Trade - RW'

A type of trade that is settled through the regular settlement cycle required for the particular investment being traded. The settlement cycle is the time that the regulations of the securities market allows for the buyer to complete payment and for the seller to deliver the goods being purchased. The settlement cycle differs for different assets. Most trades are regular-way trades.

INVESTOPEDIA EXPLAINS 'Regular-Way Trade - RW'

Options and government-issued securities are regularly settled on the next business day. Forex spot trades are regularly settled in two business days, and corporate securities are regularly settled in three business days. The regular settlement cycle length varies also by country, exchange and debt instrument and issuer.

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