Out Trade


DEFINITION of 'Out Trade'

A trade that cannot be cleared by the associated exchange clearing house because of discrepancies between the data submitted by both parties on the opposite sides of a transaction.


When an out trade occurs, it is returned to the two parties affected in order to have the inconsistency reconciled. Should the matter be resolved, the trade is resubmitted to the clearing house. If the matter cannot be resolved, it is then forwarded to the appropriate exchange committee for dispute settlements.

  1. Post-Trade Processing

    After a trade is complete, it goes through post-trade processing, ...
  2. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  3. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  4. Unwind

    To close out a position that has offsetting investments or the ...
  5. Clearing

    The procedure by which an organization acts as an intermediary ...
  6. Futures Contract

    A contractual agreement, generally made on the trading floor ...
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