clearing

Definition of "clearing"
  1. The process in which a clearing organization acts as the buyer for every seller and as the seller for every buyer of futures contracts or other derivatives for its members
How to use "clearing" in a sentence
  1. The clearing process ensured efficient trading of futures contracts in the financial market.
  2. The securities underwent clearing, acting as a protective measure against counterparty risk.
  3. The clearing house stepped in, ensuring each transaction was honored as agreed.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z