Why is a trade lifecycle important?

Therefore, having a deeper understanding of the entire trade lifecycle is important for investors and other parties that engage in trading, and also for institutions, such as banks and brokers that facilitate the trading. Trade lifecycle refers to the sequence of events that occurs and the processes that are implemented when a trade takes place.

What are the 5 stages of trade lifecycle?

In this session, we will cover the five stages of the trade lifecycle: Pre-Trade, Trade Execution, Trade Clearing, Trade Settlement, and the final stage of Position and Risk Management. Some of the key takeaways from this training is to have an improved understanding of the different stages and the processes that support the trade lifecycle.

What is a trade life cycle?

The trade life cycle is an important system of processes that ensures buy/sell orders are verified by all parties. Those parties are you, a broker, an exchange, and a clearinghouse. It’s a chain of command that starts with you placing a trade. Everything else happens in the background. All you see is that an order has been received and confirmed.