A trade confirmation is a receipt of an executed order sent to you by your broker. Trade confirmations are sent to verify that the transaction has taken place and you will receive one after every trade you make.
These can be used to assist with tax filings or settle any discrepancies. Confirmations can also be used to check against monthly statements to ensure they correctly reflect the trades made on an account.
Trade confirmations also verify the exact price that the trade has been placed at.
What is required in a trade confirmation?
A trade confirmation must show certain information about a trade. This includes the market traded, the date and time it was placed, the cost, the net value and any additional costs that may have been charged by the broker, such as commission.Including all of this information helps to verify any specific aspect of the trade. Having the details formally confirmed like this helps to avoid any disputes on price or cost further down the line.