Trade Discount

Business, Legal & 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.

Synonyms For Trade Discount

setoff, premium, agio, price cut, tare

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 28, 2021
Chicago Manual of Style (CMS):
Trade Discount. Payroll & Accounting Heaven Ltd. (accessed: September 28, 2021).
American Psychological Association (APA):
Trade Discount. Retrieved September 28, 2021, from website:

Definition Sources

Definitions for Trade Discount are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020 | 2 Views.