Explain 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 a security and the selection of a broker.
Trade execution involves the actual buying or selling of the security.
Trade confirmation involves verifying the details of the trade with the broker.
Trade settlement involves the exchange of payment and securities between the parties involved.
Trade accounting involves recording the trade in the books of accounts.
Examples of securities that go through the trade life cycle include stocks, bonds, and derivatives.

Top Louis Dreyfus Commodities Senior Business Analyst interview questions & answers