Trade Flat

Trade flat

For convertibles, trade without accrued interest. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt. In general, trade in and out of a position at the same price, neither making a profit nor taking a loss.

---

Trade Flat

1. In stocks, to trade without a change in price. That is, one trades flat when one sells a stock for the same price at which one bought it.

2. In bonds, to trade without accrued interest. That is, the buyer is not responsible for paying the seller for any interest that has accumulated since the last coupon payment.