What is trade life cycle?

Question

Accepted Answer

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

The trade life cycle includes trade initiation, trade execution, trade confirmation, trade settlement, and trade accounting.
Trade initiation involves the decision to buy or sell securities and the selection of a broker.
Trade execution involves the actual buying or selling of securities.
Trade confirmation involves verifying the details of the trade.
Trade settlement involves the exchange of securities and payment.
Trade accounting involves recording the trade in the books of accounts.
The trade life cycle can vary depending on the type of security being traded and the market in which it is being traded.

Accepted Answer

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

The trade life cycle includes trade initiation, trade execution, trade confirmation, trade settlement, and trade accounting.

Trade initiation involves the decision to buy or sell securities and the selection of a broker.

Accepted Answer

The various stages in the trade cycle life are expansion, peak, contraction, and trough.

Expansion: Period of economic growth, increased production, and rising employment.

Peak: The highest point of economic activity before a downturn.

Contraction: Economic decline, decreased production, and rising unemployment.

Trough: The lowest point of economic activity before a recovery.

Example: During the expansion phase, businesses experience increased demand and profitability.

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