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 Says:
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 Terms:
Actual
Approved Delivery Facility
Carrying Charge
Carrying Charge Market
Cash Market
Clearing Fee
Clearing House
Cost of Tender
Current Delivery
Delivery
Full Charge |