Trade Date

DEFINITION of 'Trade Date'

The month, day and year that an order is executed in the market. The trade date is when an order to purchase, sell or otherwise acquire a security is performed. The trade date can apply to the purchase, sale or transfer of bonds, equities, foreign exchange instruments, commodities, futures, etc. In some cases, the trade date will be recorded on the previous day, for trades that are executed very early, or on the next day, in the case of orders that are executed very late in the day.

BREAKING DOWN 'Trade Date'

The trade date may differ from the settlement date, which is the date that the transfer between two parties is executed. The amount of time that passes between the trade date and the settlement date differs depending on the trading instrument. Some instruments, like certificates of deposit (CDs), have settlement dates that are the same as the trade date. Mutual funds, on the other hand, are settled one day after the trade date, while equities and municipal bonds are settled three days after the trade date.

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