Web Reference: The meaning of CLEARING is the act or process of making or becoming clear. How to use clearing in a sentence. Jun 1, 2025 · Clearing is the process of reconciling purchases and sales of options, futures, or securities, and the direct transfer of funds from one financial institution to another. Clearing houses were formed to facilitate such transactions among banks. In trading, clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying transaction.
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