Define: Trade Discount

UK Accounting Glossary

Definition: Trade Discount

Quick Summary of Trade Discount

A reduction from the sales list price that a business might offer to some of its customers. The amount of the trade discount will be shown on the face of the invoice as a deduction from the list price. A Settlement Discount is different.

What is the dictionary definition of Trade Discount?

Dictionary Definition

A reduction in the list price of goods; for example: a discount given to customers who make purchases in bulk.


Full Definition of Trade Discount


Trade Discount FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Trade Discount. Payroll & Accounting Heaven Ltd. September 16, 2019
Chicago Manual of Style (CMS):
Trade Discount. Payroll & Accounting Heaven Ltd. (accessed: September 16, 2019).
American Psychological Association (APA):
Trade Discount. Retrieved September 16, 2019, from website:

Definition Sources

Definitions for Trade Discount are sourced/syndicated from:

This glossary post was last updated: 26th December 2018.