Series 34 Exam
Study Guide

Trade Date (Entry Date)

The day that a currency trade is initiated; the day on which you “buy” a currency pair.

Settlement Date

The business day which the base currency in a transaction is to be delivered.  For spot transactions, the settlement date is two business days from the trade date (T+2).

→ NOTE:

For USD/CDN trades, the settlement date is one business day (T+1). Because positions are rolled over, the settlement date is always being pushed back.

The trade date is the on which a transaction occurs, especially the trade of a security or derivative. It is important to note that the trade date differs from the settlement date, which can range from one to five days following the trade date, depending on the type of security being traded. On the trade date, ownership of the securities being traded transfers from the seller to the buyer, but the seller does not receive payment until the settlement date.

Study Guide >> Definitions and Terminology >> Trade Date and Settlement Date