Clearing
Definition of 'Clearing'The procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller for transactions in order to reconcile orders between transacting parties. |
|
Investopedia explains 'Clearing'Clearing is necessary for the matching of all buy and sell orders in the market. It provides smoother and more efficient markets, as parties can make transfers to the clearing corporation, rather than to each individual party with whom they have transacted. |
Related Definitions
Articles Of Interest
-
The Nitty-Gritty Of Executing A Trade
Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out! -
How can my stock's price change after hours, and what effect does this have on investors? Can I sell the stock at the after-hours price?
Most investors know that the major stock exchanges have standard trading hours - set periods of time each day when trading occurs through the exchange. Most major exchanges trade from 9:30am ... -
Can stocks be traded on more than one exchange, such as, for example, on both the Nasdaq and the NYSE?
A stock can trade on any exchange on which it is listed. And to be listed it must meet all of the exchange's listing requirements and pay for any associated fees. If it chooses to do so, a company ... -
How does the foreign-exchange market trade 24 hours a day?
The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex is not done at one central location but is conducted between participants ... -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Exploring The Current Account In The Balance Of Payments
Learn how a country's current account balance reflects the country's economic health. -
Understanding And Playing The Dow Jones Industrial Average
Learn strategies for investing in this price-weighted index and how to interpret its movements. -
Writing A Covered Call
Writing an option is the process of selling to another investor the right, but not the obligation, to buy or sell a stock at a given price in the near future. It can also be referred to as shorting ... -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one.
Free Annual Reports