Clean Your Skirts


DEFINITION of 'Clean Your Skirts'

A slang phrase used in the equity market to refer to a trader's obligation to make calls and check possible prior obligations related to a security transaction. Prior obligations may include confirming certain transaction details, such as limit prices or conditional events.

BREAKING DOWN 'Clean Your Skirts'

Most larger transactions, like those executed by financial institutions, require that traders clean their skirts. Before a trader is able to fill such an order, he or she will usually confirm the order is still executable; this will confirm that the trade is within the price limit and meets all of the client's conditions for an appropriate quantity.

  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Obligation

    The legal responsibility to meet the terms of a contract. If ...
  3. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  4. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  5. Conditional Order

    A type of order that will be submitted or canceled if set criteria ...
  6. Clowngrade

    An upgrade or downgrade of a security for reasons considered ...
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