CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is same-day affirmation?

Same-day affirmation

Same-day affirmation, also commonly known as SDA or T0, is a term used in trading to describe when the full trade verification process is completed on the same day that the trade took place, thus completing a large part of the trading process within a single day.

Where have you heard about same-day affirmation?

Same-day affirmation is used in a number of markets across the world, and if you’ve traded stocks then there is a chance you’ve encountered the process. Countries including India, Taiwan, Hong Kong, Japan, Singapore and Korea have a same-day affirmation rate of 90%, while Brazil, Italy, South Africa and the United State have SDA scores of less than 70%.

What you need to know about same-day affirmation.

Trade verification is used to make sure that all parties are happy with the essential details of a trade, and it is usually carried out in a partnership between the investment manager and the broker/dealer. There are four important steps in the verification process:

  1. Notice of execution by the broker/dealer
  2. Transmission of allocation details by the investment manager
  3. Confirmation of those details by the broker/dealer
  4. Affirmation by the investment manager

Once the affirmation has been completed the trade is marked as verified, allowing the clearing and settlement process to begin. Same-day affirmation is critical in enabling shortened settlement cycles.

 

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading