Trade Date

What is a 'Trade Date'

A trade date is 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.

RELATED TERMS
  1. Dated Date

    The date at which interest begins to accrue on a fixed-income ...
  2. Transaction Date

    The date upon which a security or other financial instrument ...
  3. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  4. Trade Date Accounting

    A method company accountants and bookkeepers use to record transactions ...
  5. Spot Date

    The day when a spot transaction is typically settled, meaning ...
  6. Cash Transaction

    A transaction that is settled with cash on the same day as the ...
Related Articles
  1. ETFs & Mutual Funds

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  2. 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.
  3. Personal Finance

    5 Ways to Date on a Budget

    Dating on a budget doesn't have to be boring. Try these 5 tips to find the best dates on a budget.
  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

    What is a Record Date?

    The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
  6. 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.
  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. 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 ...
  9. Investing

    Explaining the Spot Rate

    The spot rate is the immediate purchase price posted on exchanges for purchasing commodities, currency and securities.
  10. Financial Advisor

    Target Date Funds: More Popular and Cheaper

    New research on target-date funds provides lots of insights into the popular retirement planning tool. Here's a bit of it.
RELATED FAQS
  1. 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 >>
  2. Do you get a dividend if you have the stock on the ex-dividend date, but sell before ...

    Suppose the ex-dividend date is a Monday and the record date is a Wednesday. If you own the stock before & on the ex-dividend ... Read Answer >>
  3. How can I find out what date(s) I am supposed to be entitled to ex-dividends?

    Understand the various dates associated with payment of stock dividends and specifically how the determining ex-dividend ... Read Answer >>
  4. What is the difference between record date and payable date?

    Learn how to ensure receiving stock dividends by the payment date on record and important dates to keep track of pertaining ... Read Answer >>
  5. 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 >>
  6. What do T+1, T+2 and T+3 mean?

    Whenever you buy or sell a stock, bond or mutual fund, there are two important dates of which you should always be aware: ... Read Answer >>
Hot Definitions
  1. Cyclical Stock

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

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center