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Finance Dictionary and Glossary of Investment Terms
The date on which the transaction occurs; 1 to 5 days before the settlement date, depending on the type of transaction.
The date that the counterparties in an interest rate swap commit to the swap. Also, the day on which a security or a commodity future trade actually takes place. Trades generally settle (are paid for) 1-5 business days after a trade date. With stocks, settlement is generally 3 business days after the trade. The settlement date usually follows the trade date by five business days, but varies depending on the transaction and method of delivery used.
The date on which a security trade occurs.