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Out Trade

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Out Trade
A trade that cannot be settled by a clearing house because the counterparties have contradictory or otherwise inconsistent information on the trade. The clearing house may become aware of the discrepancy by reviewing the comps the brokers give one another, or by some other method. Out trades are returned to the counterparties for resolution; if they are unable to agree on the transaction, the trade is referred to the appropriate body on the exchange for arbitration. See also: Don't Know.


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