Trade Date

AAA

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.

INVESTOPEDIA EXPLAINS '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. Trading Plan

    A systematic method for screening and evaluating stocks, determining ...
  2. Contract Month

    The month in which a futures contract expires. The contract can ...
  3. Trade

    A basic economic concept that involves multiple parties participating ...
  4. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  5. Delivery Date

    1. The final date by which the underlying commodity for a futures ...
  6. Historic Pricing

    A method for calculating the value of an asset using the last ...
Related Articles
  1. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  2. Investing Basics

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  3. Options & Futures

    Direct Access Trading Systems

    DATs can dramatically speed up order execution - find out how this system gives novice traders an edge.
  4. Options & Futures

    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 is simply the date that the order is executed in the market. The second ...
  5. Retirement

    Electronic Trading Tutorial

    Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
  6. Active Trading

    Introduction To Level II Quotes

    Find out what's happening in a given stock with this service showing Nasdaq market makers' best bid and ask prices.
  7. Investing Basics

    The Strange New World Of The Bitcoin Exchange Futures Market

    We explain the basics of the Bitcoin exchange and futures market.
  8. Investing Basics

    What is the difference between a REIT and a real estate fund?

    A real estate fund invests in securities offered by public real estate properties directly or indirectly through Real Estate Investment Trusts (REITs).
  9. Mutual Funds & ETFs

    Can you invest in hedge funds?

    Read about what it takes to invest in a hedge fund, and learn how some investors find ways to indirectly capture a hedge fund's returns.
  10. Options & Futures

    Is short selling ethical?

    Understand the concept and practice of short selling, and examine the ethical questions that some investors raise in regard to this practice.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center