Assign

DEFINITION of 'Assign'

The act of clearing houses and brokerages selecting short option and future contract holders to deliver underlying securities or commodities of maturing or exercised/tendered contracts.

BREAKING DOWN 'Assign'

Not all contracts will typically be exercised or tendered; those that are need to be settled with delivery of the underlying security/commodity. Most often, clearing houses will randomly allocate assigned contracts to brokerages that, in turn, randomly select which of their clients will be assigned.

RELATED TERMS
  1. Assignable Contract

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  2. Delivery Date

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  3. Contract Month

    The month in which a futures contract expires. The contract can ...
  4. Wild Card Play

    Having the right to deliver on a futures contract at the last ...
  5. Delivery Notice

    A notice written by the holder of the short position in a futures ...
  6. Best To Deliver

    The security that is delivered by the short position holder in ...
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RELATED FAQS
  1. How do the investment risks differ between options and futures?

    Learn what differences exist between futures and options contracts and how each can be used to hedge against investment risk ... Read Answer >>
  2. How can a futures trader exit a position prior to expiration?

    A futures contract is an agreement to buy or sell a commodity at a pre-determined price and quantity at a future date in ... Read Answer >>
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    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Answer >>
  4. What does the underlying of a derivative refer to?

    Find out more about derivative securities, what an underlying asset is and what the underlying assets refer to in stock options ... Read Answer >>
  5. How can I calculate the notional value of a futures contract?

    Learn how the notional value of a futures contract is calculated, and how futures are different from stock since they have ... Read Answer >>
  6. Why do futures' prices converge upon spot prices during the delivery month?

    It's a fairly safe bet that as the delivery month of a futures contract approaches, the future's price will generally inch ... Read Answer >>
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