Options and FuturesVertical Spread Opening Purchase Stop-Limit Order Book Entry Securities Discount Rate Purchasing Hedge or Long Hedge
Board of Trade Clearing Corporation
The Chicago Board of Trade relies on an independent corporation to settle all trades made within its walls. This corporation acts as a guarantor, ensuring that all trades cleared by it are accounted for. Each day, this corporation reconciles the accounts of all clearing member firms to ensure that all gains have been properly credited and all losses have been collected. Additionally, this corporation sets and adjusts clearing member firm margins to account for changing market conditions. This entity is often referred to as a clearing corporation or clearinghouse.
Related terms
Understand the meaning and definition of Vertical Spread in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Opening Purchase in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Stop-Limit Order in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Book Entry Securities in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Discount Rate in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Purchasing Hedge or Long Hedge in the context of stock market, trading, and investments.
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