Skip to main content
Options and Futures

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

Futures Commission Merchant

Understand the meaning and definition of Futures Commission Merchant in the context of stock market, trading, and investments.

MORE
Gross National Product

Understand the meaning and definition of Gross National Product in the context of stock market, trading, and investments.

MORE
Butterfly Spread

Understand the meaning and definition of Butterfly Spread in the context of stock market, trading, and investments.

MORE
Uncovered call writing

Understand the meaning and definition of Uncovered call writing in the context of stock market, trading, and investments.

MORE
Open Outcry

Understand the meaning and definition of Open Outcry in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91