What is Clearing Corporation?
Clearing Corporation (also called clearing house) — The entity that settles trades and guarantees them by stepping in as the counterparty to both sides, removing default risk.
In simple terms
The clearing corporation ensures your buy is honoured even if the seller defaults.
Why Clearing Corporation matters when you invest
Understanding clearing corporation helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Clearing Corporation — frequently asked questions
What is Clearing Corporation?
The entity that settles trades and guarantees them by stepping in as the counterparty to both sides, removing default risk.
What does Clearing Corporation mean in the stock market?
The entity that settles trades and guarantees them by stepping in as the counterparty to both sides, removing default risk. The clearing corporation ensures your buy is honoured even if the seller defaults.
Can you give an example of Clearing Corporation?
The clearing corporation ensures your buy is honoured even if the seller defaults.
Put it into practice — open a free account.
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