TRADE DATE

In an interest rate swap , the date that the counterparties commit to the swap. Also, the date on which a trade occurs. 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. For equities , the day on which a security or a commodity future trade actually takes place. The settlement date usually follows the trade date by five business days, but varies depending on the transaction and method of delivery used.