Meaning & use

trade out

verb·Everyday

Last updated

UK/ˌtreɪd ˈaʊt/
US/ˌtreɪd ˈaʊt/

Meanings

  1. verbtransitive or intransitive

    to exchange one thing for another, especially to replace equipment, stock, or a player with something different.

    Grammar: Can take an object (trade out the old machine) or stand alone with 'of' or 'for' (trade out of a deal).

    Patterns

    • trade out something
    • trade something out
    • trade out of something
    • trade out for something

    The company decided to trade out its old delivery vans for newer electric models.

    After ten years with the team, the veteran player was traded out to a club in another city.

    We can trade out these spare parts for the ones we actually need.

  2. verbintransitivebusinessfinance

    to leave or exit a position, contract, or investment by making an exchange or sale.

    Grammar: Usually followed by 'of': trade out of a bad investment. No direct object after 'of'.

    Patterns

    • trade out of something

    Investors rushed to trade out of the stock before prices fell further.

    She traded out of her shares just before the market dropped.

    He wanted to trade out of the contract but could not find a buyer.

Word forms

third person singulartrades out
past tensetraded out
past participletraded out
-ing formtrading out

Common combinations

trade out of a contract
The manager helped him trade out of a contract that no longer suited him.
trade out old equipment
The lab plans to trade out old equipment for modern instruments.
trade out a player
The coach traded out a player to get a stronger defender.
trade out of a position
Traders tried to trade out of their positions before the closing bell.
trade out for something better
They traded out their small office for something better downtown.

Synonyms and how they differ

swap
Swap is more informal and usually means a direct exchange between two people, while trade out often suggests a business or formal deal.
exchange
Exchange is the general word for giving one thing and getting another; trade out is more specific and often used in business or sports.
replace
Replace focuses on putting a new thing in place of an old one, not on the act of exchanging or selling.

Opposites

Word family

trade noun
the activity of buying and selling, or a particular deal.
trade verb
to buy, sell, or exchange goods or services.
trader noun
a person who buys and sells things, especially in finance.
trading noun
the activity of buying and selling, often on a market.

Commonly confused: trade out or tread out?

trade out vs tread out

Tread out is not a common phrase; it would suggest walking, not exchanging. Trade out is about exchange or leaving a deal.

Practice

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