Fail

What Does Fail Mean?
A transaction that has not been settled before a deadline.

Investopedia explains Fail
Presently, firms have three days after the date of a trade to settle stock transactions. Within this timeframe, securities and cash must be delivered to the clearing house for settlement. If firms are unable to meet this deadline a fail will occur.

Settlement requirements for stock, options, futures contracts, forwards, and fixed-income securities differ.

Related Terms

Aged Fail
Clearing House
Fixed-Income Security
Forward Contract
Futures Contract
Option
Securities and Exchange Commission - SEC
Settlement Date
Trade Date
More Related Terms

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Do I own a stock as of the trade date or the settlement date?

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