Meaning & use
trade out
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Meanings
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.
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 singular | trades out |
|---|---|
| past tense | traded out |
| past participle | traded out |
| -ing form | trading 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
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
Which sentence uses 'trade out' correctly?
Choose one answer.
'Trade out of' is the correct pattern for leaving an investment or position. The other options use the wrong preposition or place it incorrectly.
Make it your own
Write a sentence using “trade out”, then check it and compare it with the examples above.