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.

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RELATED FAQS
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    Learn what differences exist between futures and options contracts and how each can be used to hedge against investment risk ... Read Answer >>
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    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 >>
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    Find out more about derivative contracts and what it means when the holders of derivative contracts take delivery of the ... Read Answer >>
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