What is a broken date?
In the financial world, the term "broken date" is used to describe the handover contract with an unusual term or due date, such as seven weeks instead of two months. Slang terms "Kohout date" or "odd date" are also used in relation to the same situation. There are many reasons why people can exert a forward contract with a broken date, and they usually emphasize in the contract to make sure the parties are aware of unusual conditions.
The financial community generally prefers the use of standardized time lengths in creating contracts for comfort. For example, people can create a forward exchange with a maturity date in one or two weeks, one month, six months, etc. Using standardized data helps people follow their contracts. For example, if someone buys a two -month contract in mid -September, the contract ripens 15 November. This makes records more advantageous as well as more efficient trading.
With a broken date, the terms of the contract are violated by the standard. In the aboveThis example could grow up on November 10th place 15th place. The contract could be written with an unusual term such as five weeks or seven months. The deadline is agreed while the parties negotiate the details of the contract and people can use a broken date to avoid conflict or for other reasons. There may be a specific reason why a person wants the contract to be aware of in advance or for other contracts created at about the same time to use the market conditions.
merchants monitor careful overview of handover contracts in their names and can buy, sell and trade these contracts and consider them as securities. If a contract with a broken date is transferred, it may be alerted to the date for the new owner to be aware of, and sometimes the buyer sometimes looks for such contracts because they can be advantageous in some situations. Electronic databases and logging can be very useful for people who try to monitor more contracts, reminders as SMThe sprays ripen so that people fail to act for the learning contract.
Date of maturity of the contract is usually clearly published in several locations about documentation, so there can be no confusion. When generating the contract and signing the paperwork, if the due date is unexpected or seems to disagree with the date agreed in the negotiations, they should deal with it before signing the contract and legally commit to written terms.