Trade Life Cycle Explained: Key Steps Every Investor Should Know
Understanding the trade life cycle is fundamental for anyone participating in the financial markets. Whether you're a retail investor managing a personal portfolio or part of an institutional trading desk handling large volumes of transactions, knowing how a trade progresses from inception to completion is essential. Each step in the cycle involves various checks, systems, and stakeholders that ensure the smooth execution and settlement of trades. This article breaks down the trade life cycle into its key stages, explaining each with enough clarity to empower both novice and experienced investors.
What Is the Trade Life Cycle?
The trade life cycle refers to the sequence of processes that a financial trade undergoes from the moment an investor decides to place a trade to its final settlem...