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What Is Clearing? Definition, How It Works, and Example

Financial Concepts

Definition

Clearing is the procedure by which financial trades settle; that is, the correct and timely transfer of funds to the seller and securities to the buyer. Often with clearing, a specialized organization acts as the intermediary and assumes the role of tacit buyer and seller to reconcile orders between transacting parties. Clearing is necessary for the matching of all buy and sell orders in the marke

In Panel Profits

In the Panel Profits market platform, What Is Clearing? Definition, How It Works, and Example applies standard financial concepts principles to comic assets and physical collections.

Common mistakes

Do not infer unobserved prices.