Trade and Settlement dates?

tgon

After reading some definitions on-line, I'm still a little unsure of the significance of the two contractual dates as applied to buying funds, especially in regard to losses or gains in the intervening days?

EdGasket

Trade is the day the deal is traded. Settlement is when they are actually paid for; usually settlement is two days after the bargain (trade) date of the trade.

Ballard

To clarify Ed's post, it doesn't matter what happens between trade & settlement date. Once the deal is struck that's the agreed price. It just takes a couple of days for it to be delivered (and the cash exchanged).