← Options Glossary

Clearing House

Clearing houses act as intermediaries between counterparties (buyers and sellers) in financial transactions. In the securities industry, this structure is often referred to as central counterparty clearing (CCP). A central counterparty (such as the OCC), is a financial institution that provides clearing and settlement services for trades in securities, derivatives, and foreign exchange.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.