What is Novation?
Novation — The process where the clearing corporation becomes the buyer to every seller and the seller to every buyer, guaranteeing settlement.
In simple terms
Through novation, you never face the risk of your specific counterparty.
Why Novation matters when you invest
Understanding novation 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.
Novation — frequently asked questions
What is Novation?
The process where the clearing corporation becomes the buyer to every seller and the seller to every buyer, guaranteeing settlement.
What does Novation mean in the stock market?
The process where the clearing corporation becomes the buyer to every seller and the seller to every buyer, guaranteeing settlement. Through novation, you never face the risk of your specific counterparty.
Can you give an example of Novation?
Through novation, you never face the risk of your specific counterparty.
Put it into practice — open a free account.
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