Decoding Your Trade Confirmation: More Than Just a Receipt
Embarking on the journey through financial markets, whether you’re trading stocks, bonds, or other securities, involves more than just watching charts and executing orders. A fundamental, yet often overlooked, document lands in your inbox or mailbox after every transaction: the trade confirmation. For new investors, it might seem like just a boring receipt. But for seasoned traders and financial professionals, this document is a cornerstone of market transparency, regulatory compliance, and accurate record-keeping. Do you truly understand its power and purpose?
Think of a trade confirmation not as a simple proof of purchase, like when you buy groceries, but as a detailed report from your broker or investment firm. It’s a crucial communication that outlines exactly what happened with your order. Neglecting to review it can lead to significant problems down the road, from incorrect tax filings to unidentified unauthorized activity. In this guide, we’ll delve deep into the world of trade confirmations, uncovering their meaning, dissecting their contents, and highlighting why they are indispensable tools in your financial arsenal. We’ll approach this like experienced navigators charting a complex sea, breaking down each concept into manageable parts, ensuring you gain not just surface knowledge, but a deep, actionable understanding.
At its core, a trade confirmation is the official document issued by a broker or investment firm to a client following the execution of a securities transaction. It serves as concrete, legally binding proof that a specific trade occurred on your behalf.
Imagine placing an order to buy 100 shares of a particular company. You hit the ‘buy’ button, the order goes through, and a moment later, you see the position in your account. That feels like the end of the process, right? Not quite. The trade confirmation is the formal validation of that event. It confirms that your order was successfully executed, detailing precisely the terms of that execution.
Historically, these were paper documents mailed to investors. Today, they are overwhelmingly electronic, delivered via email or accessible through your online brokerage portal. Regardless of the format, their function remains the same: to provide you with an accurate, verifiable record of the transaction.
This document isn’t merely a courtesy; in most jurisdictions, including major financial markets globally, brokers are legally required to provide a trade confirmation to their clients. This requirement stems from regulatory bodies aiming to ensure transparency and protect investors. It compels brokers to be accountable for the transactions they execute on your behalf and provides you, the investor, with the necessary information to verify the accuracy and legitimacy of those trades.
So, when you receive that notification or see that document appear in your account, understand that it’s not just noise in your inbox. It’s an essential piece of your investment puzzle, mandated by law to give you clarity and control over your trading activities.
Why is a Trade Confirmation So Crucial for You?
Understanding and reviewing your trade confirmations is far from a bureaucratic chore; it’s a critical habit for any serious investor or trader. Why are these documents so important?
Firstly, they are your primary tool for verifying the accuracy of a transaction. Did the broker execute the trade at the price you expected? Was the quantity correct? Were the commissions or fees what you anticipated? The confirmation provides the definitive details against which you can check your own records and expectations. Finding a discrepancy early can save you significant headaches later.
Secondly, trade confirmations are indispensable for tax purposes. When you eventually sell a security, you’ll need to calculate your capital gain or loss. This calculation relies on the cost basis of your initial purchase, which includes the purchase price plus associated transaction costs (like commissions). Your trade confirmation is the official record of this cost basis. Without it, accurately reporting your gains or losses to tax authorities becomes challenging, potentially leading to errors or compliance issues.
Thirdly, confirmations provide a crucial mechanism for identifying unauthorized trades or errors. In rare but serious cases, a trade might appear in your account that you did not authorize. A prompt review of your confirmation allows you to flag such activity immediately, increasing your chances of rectifying the situation with your broker or relevant regulatory bodies.
Furthermore, they are the foundation for reconciling your trading activity against your monthly or quarterly account statements. While account statements provide a summary of your holdings and transactions over a period, the individual trade confirmation offers the granular detail for each specific trade. By comparing the two, you can ensure that all transactions listed on your statement are accurate and accounted for by a corresponding confirmation.
In essence, trade confirmations empower you. They give you the specific data points needed to:
- Verify trade execution details (price, quantity, time).
- Calculate cost basis for tax reporting.
- Identify and dispute discrepancies or errors.
- Catch potentially unauthorized trading activity.
- Maintain accurate personal trading records.
- Understand and verify the total cost of each transaction, including all fees.
| Benefit | Description |
|---|---|
| Verify Transactions | Confirm execution details to ensure accuracy. |
| Tax Calculation | Document cost basis for accurate capital gains reporting. |
| Error Identification | Detect unauthorized trades or errors early. |
Think of it as the final check before you accept delivery of a valuable package. You wouldn’t just sign for it without ensuring it’s the right item and in good condition, would you? Your trade confirmation is that vital check for your financial transactions.
Peeling Back the Layers: Essential Information on Your Confirmation
A trade confirmation isn’t just a list of items; it’s a structured document containing specific, mandatory pieces of information designed to provide complete transparency about your transaction. Let’s dissect the key components you should expect to find and understand on every confirmation.
First and foremost, it will clearly identify the security traded. This includes the ticker symbol, company name, and possibly the security type (e.g., common stock, bond, option). It should also specify whether you bought or sold the security.
Next, the date and time of the trade execution are critical. This timestamp provides the exact moment your order was filled on the market. Comparing this to the market activity at that specific time can help verify the fairness of the execution price.
The price at which the transaction occurred is perhaps the most looked-at detail. For a stock purchase, this is the per-share price. For a bond, it might be a price quoted as a percentage of par value. This price is the basis for calculating the value of the transaction before fees.
The quantity specifies how many shares, bonds, contracts, or units of the security were traded. Did you intend to buy 100 shares and the confirmation shows 100? Good. If it shows 1,000, you have a problem to address immediately.
The total cost or net amount of the transaction represents the total money exchanged. For a purchase, this is the price multiplied by the quantity, plus any fees or commissions. For a sale, it’s the price multiplied by the quantity, minus fees, commissions, or markdowns.
Crucially, the confirmation must detail all charges and fees associated with the trade. This is where things can sometimes get complicated. Common fees include:
- Commission: A fee charged by the broker for acting as your agent in the transaction. This is often a fixed amount or a percentage of the transaction value.
- Markup or Markdown: If the broker acts as a principal (selling a security they own to you, or buying a security from you for their own inventory), especially common in bond markets, they must disclose the markup (on a sale to you) or markdown (on a purchase from you). This represents the difference between the price they traded with you and the prevailing market price at that time.
- Other Fees: This can include regulatory fees (like SEC fees), transaction fees, exchange fees, or clearing fees.
| Fee Type | Description |
|---|---|
| Commission | Fee for executing a trade on your behalf. |
| Markup | Difference when broker sells a security from their inventory. |
| Regulatory Fees | Fees required for regulatory compliance. |
Understanding the distinction between a broker acting as an agent versus a principal is vital, as it impacts how fees are disclosed and how the transaction is structured. The confirmation must clearly indicate in which capacity the broker acted.
Finally, the confirmation specifies the settlement terms and date. This is the date by which the cash and securities must be exchanged between the parties involved in the transaction. The standard settlement cycle for most securities is currently T+1 (trade date plus one business day), although older confirmations might show T+2 or T+3.
Additional details you might find include your account number, the other party’s account number (sometimes), special handling instructions, and important regulatory disclosures. Each piece of information plays a role in painting a complete picture of your trade and fulfilling regulatory requirements.
Broker’s Role: Agent or Principal, and Why it Matters on the Confirmation
One of the most important disclosures on a trade confirmation relates to the broker’s role in the transaction: did they act as an agent or a principal? Understanding this distinction is key to understanding the fees you paid and the nature of the trade, especially in less liquid markets like bonds.
When a broker acts as an agent, they are essentially acting on your behalf to find a buyer or seller in the market. They execute your order on an exchange or other trading venue. Their compensation for this service is typically a commission, which must be clearly stated on the trade confirmation.
Think of an agent like a real estate agent. They connect a buyer and a seller, facilitating the transaction, and earn a commission for their services based on the value of the deal. Your stockbroker acting as an agent does much the same, finding someone else in the market willing to take the other side of your trade.
However, brokers can also act as a principal. In this capacity, the broker themselves is the direct counterparty to your trade. If you are buying, they are selling you a security from their own inventory. If you are selling, they are buying the security from you for their inventory. This is common in markets like corporate or municipal bonds, where trading often happens over-the-counter (OTC) rather than on a centralized exchange with an active order book.
When acting as a principal, the broker doesn’t charge a commission. Instead, they profit from the difference between the price they buy the security at and the price they sell it at. This difference, when selling to you, is called a markup. When buying from you, it’s called a markdown. Regulatory requirements often mandate the disclosure of markups and markdowns on trade confirmations, particularly for certain types of bonds, though the specifics can vary.
Why does this matter to you as an investor? It impacts how you assess the cost of your trade. A commission is typically a transparent fee added to the transaction value. A markup or markdown, while also a cost, is built into the price itself. Understanding which role your broker played helps you verify that the costs disclosed on the confirmation align with the type of compensation arrangement.
The trade confirmation serves as the official record of this crucial disclosure. Always check this section to understand how your broker facilitated the trade and how they were compensated. It reinforces transparency and helps you evaluate the fairness of the transaction costs.
The Lifecycle of a Trade: From Execution to Confirmation and Beyond
Understanding when and how you receive a trade confirmation requires looking at the broader lifecycle of a securities transaction. It’s a multi-step process designed for accuracy and efficiency, especially in today’s high-speed electronic markets.
The process begins with Execution. This is when your order to buy or sell is successfully matched with a corresponding order in the market. This happens almost instantaneously in electronic trading systems.
Following execution, particularly in institutional trading and increasingly in retail flows, comes Affirmation. This step involves a rapid verification of the key trade details between the involved parties (usually the broker and the clearing firm or the investor’s custodian). Think of it as a quick “Are we in agreement on the basics?” check. This typically happens within minutes of execution and involves confirming details like the security, quantity, price, time, and counterparty identities. This early affirmation is crucial for catching simple errors upfront and is a critical part of the modern electronic trading workflow, facilitated by systems like DTCC’s Omgeo CTM.
The Trade Confirmation is the next formal step. As we’ve discussed, this is the detailed, legally binding document sent by the broker to you. Regulations dictate that this confirmation must be sent “on or before the completion of the transaction.” Completion generally means the settlement date or the date the cash and securities are exchanged, whichever is earlier. Practically, this means you typically receive the confirmation electronically within a day or two of the trade execution, often sooner. Paper confirmations might take longer to arrive via mail.
Finally, the process concludes with Settlement. This is when the actual exchange of cash and securities takes place. For most standard securities, this occurs one business day after the trade date (T+1). In older times, or for some less common securities, it might be T+2 or T+3. The trade confirmation will specify this settlement date.
So, the flow is typically: Order -> Execution -> Affirmation (rapid, if applicable) -> Confirmation (formal document) -> Settlement (physical/electronic exchange of assets).
The timing of the confirmation is designed to give you ample opportunity to review the details before settlement occurs, providing a final chance to identify any potential issues before the transaction becomes fully completed and irreversible without a separate process.
Swift Scan or Deep Dive? How to Effectively Review Your Confirmation
Receiving your trade confirmation should trigger a moment of focused attention. While the speed of modern trading might encourage complacency, taking the time to review this document thoroughly is a non-negotiable practice for protecting your interests. How should you approach this review?
Start with a swift scan to ensure the core details match your expectations:
- Is it the correct security (ticker symbol and name)?
- Was it a buy or a sell order?
- Is the quantity correct?
- Does the execution price seem reasonable based on the market price you observed around the time of your trade?
If these basic checks pass, it’s time for the deep dive:
- Verify the exact date and time of execution. This helps you reconcile the trade with market data and news events that might have influenced the price.
- Scrutinize the total cost or net proceeds. Does the math add up based on the quantity, price, and disclosed fees?
- Carefully examine the fees and charges section. Are the commissions what you expected based on your broker’s fee schedule? If there’s a markup or markdown (common with bonds), is it clearly disclosed as required? Question any fees you don’t understand or that seem excessive.
- Check the broker’s capacity: did they act as an agent or a principal? This ties directly back to how fees are disclosed.
- Look for the Solicited vs. Unsolicited disclosure. An unsolicited trade is one you initiated yourself without a recommendation from your broker. A solicited trade is one recommended by your broker. This disclosure is important for regulatory compliance and can be relevant if a recommended trade performs poorly – regulators look carefully at suitability for solicited trades. Ensure this accurately reflects how the trade originated.
- Verify the settlement date. This confirms when the transaction will be completed.
- Confirm your account number is correct.
| Review Step | Purpose |
|---|---|
| Swift Scan | Quickly verify key details match your expectations. |
| Deep Dive | Thoroughly check all components for accuracy. |
Compare the details on the confirmation against your own trading log or memory of the order you placed. Also, cross-reference the confirmation against your regular account statements when they arrive. Every trade listed on your statement should have a corresponding confirmation.
Make reviewing confirmations a habit as soon as you receive them. The sooner you identify a potential issue, the easier it is to resolve. Delay can complicate matters, especially if the settlement date passes.
Affirmation vs. Confirmation: Understanding the Electronic Dance
In the evolution of securities trading, particularly with the rise of electronic systems, a distinction has emerged between two key steps: Trade Affirmation and Trade Confirmation. While the terms sound similar and are often confused, they represent distinct stages in the post-trade process, each with a specific purpose.
Trade Affirmation is the faster, earlier step. It’s an electronic process where key details of a trade (like security, quantity, price, date, time, and the identities of the parties involved) are quickly matched and verified between the executing broker and the contra-party (often a clearing firm or the investor’s custodian). This happens very rapidly after execution, often within minutes. Affirmation is primarily about ensuring that the fundamental facts of the trade are agreed upon early in the process. It helps identify potential errors like incorrect CUSIPs, quantities, or prices before the process moves further towards settlement. It’s a crucial step for institutional trades and is increasingly part of the workflow for other types of transactions via platforms like Omgeo CTM, facilitating automated matching and reducing manual intervention.
Think of affirmation as a quick handshake and agreement on the core parameters: “Yes, we both agree we traded this many shares of XYZ at this price right now.”
Trade Confirmation, as we’ve extensively discussed, is the formal, detailed, and legally mandated document sent from the broker *to the client* (the investor). It includes all the details agreed upon during affirmation, but adds much more: fees, commissions, markups/markdowns, settlement terms, regulatory disclosures (like agent/principal role, solicited/unsolicited), and account specifics. It is the official record provided directly to the beneficial owner of the account.
The sequence is typically Execution -> Affirmation (between firms) -> Confirmation (firm to client) -> Settlement (exchange of assets).
Why this two-step verification? Affirmation is about speed and efficiency in the inter-firm matching process, catching obvious discrepancies early to prevent settlement failures. Confirmation is about regulatory compliance, transparency, and providing the client with their formal, detailed record for review, verification, and tax purposes. Both steps are vital components of the modern, automated trading infrastructure designed to minimize errors and maintain market integrity.
For you, the investor, your primary interaction is with the Confirmation. While you might not be directly involved in the electronic affirmation process, understanding its existence helps you appreciate the layers of verification happening behind the scenes before you receive your final document.
What to Do When Things Don’t Match: Addressing Discrepancies and Errors
Despite automated systems and multiple verification steps, errors can and sometimes do occur in trading. This is precisely why your diligent review of the trade confirmation is so critical. What should you do if you spot a discrepancy, an error, or something that just doesn’t look right on your confirmation?
The most important first step is to act immediately. Do not delay. The sooner you raise the issue, the easier it is for your broker to investigate and potentially correct it, especially before the settlement date passes.
Contact your broker directly. This could be through their customer service line, your specific financial advisor, or the messaging system within their online portal. Clearly explain what you believe is incorrect on the confirmation. Provide specific details: the trade date, security, the detail you dispute (e.g., price, quantity, fee), and why you believe it is an error (e.g., “I placed an order for 100 shares at $50, but the confirmation shows 1,000 shares”).
Be prepared to provide any supporting evidence you might have, such as a screenshot of your order entry screen or a record from your own trading journal. Maintain a calm and professional demeanor, but be firm in requesting a review and potential correction.
Your broker is obligated to investigate your claim. If they confirm an error on their part (for example, a data entry mistake or an execution issue), they will typically make an adjustment to correct your account. This might involve adjusting the number of shares, the price, or the fees.
What if the discrepancy involves a fee you didn’t expect, such as an unusually high commission or an undisclosed markup? Question it. Ask for a clear explanation of the charge and reference your broker’s fee schedule or their duty to disclose. Understanding the broker’s capacity (agent vs. principal) as shown on the confirmation is key here.
In a more serious scenario, like suspecting an unauthorized trade that you did not place, you must report it to your broker immediately and unequivocally state that the trade was unauthorized. Follow up in writing (email is usually sufficient, provided it’s to an official channel) to create a record of your communication. The broker has a responsibility to investigate and address unauthorized activity in your account.
If you are unsatisfied with your broker’s response or believe they are not adequately addressing the issue (especially in cases of suspected unauthorized trading, fraud, or persistent errors), you have the right to escalate your complaint. In the United States, for instance, you can file a complaint with the Financial Industry Regulatory Authority (FINRA), which oversees brokers and brokerage firms. Other countries have similar regulatory bodies (e.g., the Financial Conduct Authority (FCA) in the UK, ASIC in Australia).
Keeping copies of all your trade confirmations and account statements is also crucial. These documents serve as your proof should you ever need to pursue a formal complaint or arbitration. Treat them as important financial records, akin to bank statements or tax documents.
Beyond Trading Receipts: A Different Kind of “Confirmation” in Technical Analysis
While our primary focus has been on the financial document confirming a trade, it’s worth briefly touching upon a different usage of the word “confirmation” that you will encounter if you delve into technical analysis. This contrast helps highlight the specific meaning within the context of trade execution documentation.
In technical analysis, “confirmation” refers to the use of additional indicators or analytical tools to validate a signal generated by another indicator or chart pattern. Technical analysts use patterns and indicators to predict future price movements. However, relying on just one signal can be risky. Confirmation involves looking for agreement from other, ideally independent, indicators before making a trading decision.
For example, suppose a moving average crossover suggests a potential bullish trend is starting. A technical trader might look for confirmation from a momentum indicator like the Relative Strength Index (RSI) moving above 50, or a volume indicator like On-Balance Volume (OBV) rising. If both the moving average crossover and the RSI/OBV show bullish signs, they are said to “confirm” the potential trend change, increasing the trader’s confidence in the signal.
The goal of technical analysis confirmation is to reduce false signals and improve the probability of a successful trade based on chart patterns and indicators. It’s a strategy to filter trading opportunities.
Key characteristics of technical analysis confirmation:
- It’s about validating a *signal* or *trend* prediction.
- It uses multiple technical indicators or analytical methods.
- It aims to increase confidence and reduce the risk of false signals.
- It involves interpreting market data (price, volume, indicators).
This is distinct from a trade confirmation, which is a formal document confirming a *completed transaction*. One is a tool for market forecasting and signal validation *before* a trade, while the other is a record of a trade *after* it has happened.
It’s important not to confuse these two meanings. When your broker sends you a “trade confirmation,” they are not confirming a trend in the market; they are confirming that your specific buy or sell order was executed, detailing its specifics. Understanding the context is always crucial in finance.
Regulatory Pillars: How Confirmations Ensure Market Integrity and Compliance
The requirement for brokers to issue trade confirmations is deeply rooted in financial market regulation. These regulations are designed with several key objectives in mind, primarily aimed at protecting investors and ensuring the fair and orderly functioning of the markets.
One primary objective is transparency. The confirmation provides you with a clear, itemized breakdown of the transaction, including the price, quantity, and all associated costs. This prevents brokers from hiding fees or misrepresenting the terms of a trade. By mandating the disclosure of commissions, and in certain cases, markups and markdowns, regulators ensure that investors have a full understanding of the cost of executing their trades.
Another crucial aspect is accountability. The confirmation is proof that the broker acted on your instruction (or, if unsolicited, that you initiated it). It serves as a record that can be used in case of disputes or investigations. By requiring details like the execution time, regulators can verify that orders were handled appropriately according to best execution requirements.
Confirmations also play a vital role in fraud prevention. Prompt confirmation allows investors to detect unauthorized trades quickly. If a confirmation arrives for a trade the investor did not place, it’s an immediate red flag, enabling them to alert the broker and regulators and potentially prevent fraudulent activity from causing significant harm.
The disclosure of the broker’s capacity (agent or principal) is a specific regulatory requirement designed to inform investors about potential conflicts of interest. When a broker acts as a principal, they are trading from their own inventory, which could potentially create a conflict if their interests in selling or buying differ from your interests. Disclosing this capacity allows you to understand the nature of the transaction.
Furthermore, the information on trade confirmations is essential for brokers’ own compliance and record-keeping obligations. Brokers must maintain detailed records of all transactions, and confirmations are a key part of this. These records are subject to audit and review by regulatory bodies like FINRA (in the US) to ensure compliance with a vast array of rules, including those related to customer protection, suitability, and anti-money laundering.
In essence, trade confirmation requirements are a fundamental pillar supporting the integrity of securities markets. They formalize the broker-client relationship regarding executed trades, provide essential information for investors, facilitate regulatory oversight, and contribute significantly to maintaining trust and preventing misconduct within the financial system.
If you’re exploring various trading opportunities, perhaps including derivative products like CFDs, you’ll find platforms designed to handle these complexities. If you’re considering delving into forex trading or exploring diverse CFD instruments, then Moneta Markets is a platform worth considering. Hailing from Australia, it boasts a portfolio of over 1000 financial instruments, catering effectively to both novice and experienced traders.
The Future of Confirmations: Technology, T+1, and Your Role
The financial markets are constantly evolving, driven by technological advancements and regulatory changes. The process of trade confirmation is also part of this evolution. The move towards faster settlement cycles, such as the recent shift to T+1 (settlement one business day after the trade date) for most US securities, highlights the increasing importance of efficient and automated post-trade processes, including affirmation and confirmation.
Faster settlement means less time between the trade date and when the actual exchange of cash and securities occurs. This significantly reduces counterparty risk, as there’s less exposure time for market fluctuations or potential defaults between firms. However, this compressed timeline puts pressure on the post-trade operations to be highly efficient and accurate. The rapid, automated process of trade affirmation becomes even more critical in a T+1 environment to identify and resolve potential issues within the shortened window.
Simultaneously, the delivery of trade confirmations is also accelerating. Electronic delivery methods are now the standard, providing investors with access to their transaction details almost immediately after execution. This instantaneous access empowers you, the investor, to review your trades much faster, further enhancing your ability to detect and report errors or unauthorized activity before settlement.
The future will likely see even greater automation and integration in the post-trade workflow. Technologies like blockchain could potentially revolutionize settlement and confirmation processes by providing distributed, immutable records of transactions in near real-time, potentially merging aspects of affirmation, confirmation, and settlement into a more seamless flow.
What does this mean for your role as an investor? While technology streamlines processes, it doesn’t diminish your responsibility. Your role in reviewing trade confirmations remains as vital as ever, perhaps even more so with faster settlement. The speed of electronic delivery means you receive the information sooner, giving you more time (within the compressed T+1 cycle) to flag issues before settlement. You need to be comfortable accessing and reviewing these electronic documents promptly.
Furthermore, as you navigate the landscape of brokerage platforms and trading technologies, understanding their capabilities regarding trade confirmation and post-trade reporting is key to choosing a broker that meets your needs for transparency and record-keeping. When selecting a trading platform, Moneta Markets‘ flexibility and technological edge are worth noting. It supports widely used platforms like MT4, MT5, and Pro Trader, combining high-speed execution with competitive low spreads, offering a solid trading experience.
Conclusion: Trade Confirmations – Your Foundation for Confidence
In the complex world of financial markets, information is power. Your trade confirmation is a critical piece of that information. Far from being mere administrative clutter, it is a legally mandated document providing the definitive record of your securities transactions.
We’ve seen how confirmations define the transaction details, including price, quantity, date, and time, and crucially, how they disclose associated fees and the broker’s role. We’ve explored their indispensable value for accurate tax reporting and as a vital tool for catching errors, discrepancies, or even potential unauthorized activity in your account. Understanding the distinction between rapid trade affirmation and the formal trade confirmation process illuminates the layers of verification that support market efficiency and risk management.
Your active role in reviewing these documents upon receipt is paramount. It’s your responsibility to ensure the details match your expectations and records, to question anything that seems amiss, and to understand the fees you are paying. Regulatory frameworks rely on this investor vigilance to uphold market integrity and protect against misconduct.
As technology continues to accelerate the pace of trading and settlement, the accessibility and clarity of electronic confirmations become increasingly important. Being informed and diligent in reviewing these documents is not just a best practice; it’s a fundamental aspect of being a responsible and empowered investor.
By treating your trade confirmations with the seriousness they deserve, you build a strong foundation for accurate record-keeping, informed decision-making, and confident participation in the financial markets. Keep them, review them, and understand them – they are your proof, your guide, and your protection.
trade confirmation meaningFAQ
Q：What is a trade confirmation?
A：A trade confirmation is a document issued by a broker to confirm the details of a securities transaction.
Q：Why is reviewing trade confirmations important?
A：Reviewing trade confirmations is vital for verifying transaction accuracy, preparing for tax calculations, and detecting unauthorized trades.
Q：What information is typically included in a trade confirmation?
A：A trade confirmation typically includes details like security name, price, quantity, execution time, fees, and broker’s role (agent or principal).