Articles on: Investment Glossary

COD Transaction

A type of securities transaction in which the purchaser pays for the securities when they are delivered to the purchaser or the purchaser’s bank. Regulation T requires that the purchaser have funds available for payment and that the seller make delivery within 35 days of the trade date. It is also known as a DVP (Delivery Versus Payment) transaction.

Updated on: 24/04/2023

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