You’ve Made the Trade. What’s Next?
The day your stock or exchange-traded fund (ETF) order is executed is called its trade date — or T for short. If it was a market order, T could be the day you gave it. With a limit order, T is the day the price was right.
But T isn’t the end of the story. If you bought, you have to pay. And if you sold, you have to deliver the shares. A deal is a deal.
Think about it though. If you’re spending $2,500 for 100 shares of stock, what do you want before you turn over your money? Right. You want the stock. And if you’re selling, you want your money before you part with your shares.
Here’s the complication. You can’t meet at the market to make the exchange. In fact, neither of you has a clue who the other investor is. But the trade works perfectly anyway. If you buy, you always get your shares, and if you sell you always get your money.