TRADE DATE Meaning and
Definition
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A trade date refers to the specific date on which a financial transaction, particularly the buying or selling of a security or an asset, takes place. It is the day when an order to execute a trade is placed and agreed upon by both the buyer and the seller. The trade date signifies the initiation of a trade and sets into motion the transfer of ownership or rights to a particular financial instrument.
The trade date is significant in financial markets as it determines various factors such as the price at which a security is bought or sold, the settlement date for the transaction, and the period over which the buyer or seller bears the risk associated with the trade. It is important to distinguish the trade date from the settlement date, which is the day on which the actual transfer of funds and delivery of securities occur.
The trade date serves as a reference point for recording and tracking transactions in financial statements and accounting systems. It is a crucial element in ensuring accurate and timely reporting of trades as well as determining the timing and recognition of revenue or expenses related to a particular trade. Furthermore, the trade date is used to track the historical performance and value of a portfolio or investment, as it reflects the actual date on which a position was added or liquidated.
Common Misspellings for TRADE DATE
- rrade date
- frade date
- grade date
- yrade date
- 6rade date
- 5rade date
- teade date
- tdade date
- tfade date
- ttade date
- t5ade date
- t4ade date
- trzde date
- trsde date
- trwde date
- trqde date
- trase date
- traxe date
- trace date
- trafe date
Etymology of TRADE DATE
The term "trade date" is composed of two words - "trade" and "date".
The word "trade" comes from the Middle English word "traden" and the Old English word "tradian", both of which mean "to tread" or "to track". It originated from the Proto-Germanic word "tradōną", meaning "to tread, step" or "to follow a track". Over time, "trade" evolved to refer to the action of buying, selling, or exchanging goods or services.
The word "date" originated from the Middle English word "date" or "date" and the Latin word "data", meaning "something given" or "thing given". It was originally used to indicate the time a letter or document was written or issued.
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