Trade (financial instrument)


In finance, a trade is an exchange of a security for "cash", typically a short-dated promise to pay in the currency of the country where the 'exchange' is located. The price at which a financial instrument is traded, is determined by the supply and demand for that financial instrument.
;Securities trade life cycle
  1. Order initiation and execution.
  2. Risk management and order routing.
  3. Order matching and conversion into trade.
  4. Affirmation and confirmation.
  5. Clearing and Settlement.