What is clearing house?Clearing House
An institution that stands between buyer and seller and guarantees the contract is honored.
Learn “clearing house” in an animated lesson
- Futures BasicsGoing Long and Short with Futures
Shorting futures needs no borrowing: just sell the contract and profit when the price falls. Gains and losses for longs and shorts are perfectly symmetrical.
- Futures BasicsWhat Are Futures?
A farmer and a bakery agree today on the price of wheat in 3 months. That's a futures contract: a standardized agreement to buy or sell at a fixed price in the future.
Related terms
See how “clearing house” works for yourself with an animation you can drag and play.
Go to “Going Long and Short with Futures”