What's Trafe life cycle?

Question

Accepted Answer

The trade life cycle refers to the various stages involved in a trade, from initiation to settlement.

The trade life cycle typically includes stages such as trade initiation, trade execution, trade confirmation, trade settlement, and post-trade activities.
During trade initiation, the parties involved negotiate and agree on the terms of the trade.
Trade execution involves the actual buying or selling of the financial instrument.
Trade confirmation ensures that both parties agree on the details of the trade.
Trade settlement involves the transfer of funds and securities between the parties.
Post-trade activities include activities like clearing, reconciliation, and reporting.
Example: In the stock market, a trade life cycle may involve stages like order placement, order matching, trade confirmation, settlement, and post-trade activities.

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