To make exchanges of checks and bills, and settle balances, as is done in a clearing house.
The process by which a clearinghouse maintains records of all trades and settles margin flow on a daily market-to-market basis for its clearing members.
The formal completion of a trade.
To settle a trade is settled out by the seller delivering securities and the buyer delivering funds in the proper form. A trade that does not clear is said to fail. Comparison of the details of a transaction between broker/dealers prior to settlement; final exchange of securities for cash on delivery.
settle, as of a debt; "clear a debt"; "solve an old debt"
To complete a trade, i.e., when the seller delivers securities and the buyer delivers funds in correct form. A trade fails when proper delivery requirements are not satisfied.