The actual monetary value given to an asset. This value in a trade serves as a compromise at which a buyer agrees to buy and a seller agrees to sell.
Clearing Price
Related Terms
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A repurchase agreement (“repo”) is a short-term secured loan: one party sells securities to another and agrees to repurchase those securities later at a higher price. The securities serve as...
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Liquidity describes the extent to which an asset can be bought and sold quickly, and at stable prices, and converted to cash. Liquidity refers to how quickly and at what cost one can sell an asset,...
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Central counterparty clearing houses (CCPs) are financial organizations, often operated by major banks, created with the objective of easing trading in derivatives and equities and guaranteeing...
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Price discrimination is the practice of selling identical goods or services at different prices from the same provider. In pure price discrimination, the seller will charge the buyer the absolute...
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A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]