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.

BREAKING DOWN 'Out Trade'

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.

RELATED TERMS
  1. International Clearing System

    The International Clearing System is a trade clearing system ...
  2. Depository Trust & Clearing Corporation ...

    Established in 1999, the DTCC is a holding company that consists ...
  3. Free and Clear

    When an asset or property is owned completely without debt or ...
  4. Settlement Period

    A settlement period is the time between the settlement date and ...
  5. Pay/Collect

    An abbreviated reference to the payment or collection of funds ...
  6. Spot Exchange Rate

    A spot exchange rate is the rate of a foreign-exchange contract ...
Related Articles
  1. Trading

    Principal trading and agency trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on to find out.
  2. Insights

    Why Are Safe Haven Assets Disappearing?

    The push for safer trading is sharply reducing the supply of safe haven assets, experts say.
  3. Personal Finance

    How to Dispute a Credit Card Charge

    Here's what to do if you've been ripped off or spot an error on your credit card bill. Find out how to successfully dispute an errant credit card charge.
  4. Investing

    Where International Real Estate Is Booming

    Which country has the hottest property market right now? The answer will undoubtedly surprise you.
  5. Investing

    Party City Slides on Surprise Secondary Offering

    Shares of Party City Holdco (NYSE: PRTY) plunged 8% on Friday after the party goods retailer abruptly announced a secondary offering of 10 million shares. The offering will be made on behalf ...
  6. Insights

    The Balance Of Payments

    The "Balance of Payments" is a record of all payments or monetary transactions between a particular country and other nations during a specific time period. It provides a useful glimpse into ...
  7. Tech

    DTCC And Digital Asset Bring Blockchain To Repos

    The rising interest in blockchain has attracted none other than the Depository Trust & Clearing Corporation (DTCC), an entity at the core of post-trade market infrastructure to test bitcoin’s ...
  8. Personal Finance

    How To Dispute Errors On Your Credit Report

    It just takes some time and effort to rebound from a nasty case of "credit rejection shock."
  9. Tech

    190 Cryptocurrency Exchanges: So How to Choose

    With the plethora of digital currency exchanges, how can an investor choose the right one?
RELATED FAQS
  1. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
  2. What is the difference between a bill of exchange and a promissory note?

    Learn what bills of exchange and promissory notes are, along with notation of the primary differences between these two documents. Read Answer >>
  3. If everyone is selling in a bear market, does your broker have to buy your shares ...

    Learn about who the counterparty to your trades is, and how your broker functions during a market sell off. Read Answer >>
Trading Center