After a crypto trade, clearing offsets obligations between the parties, while settlement involves the actual payment and delivery of the assets. Clearing reduces the exchanges that must be completed, and collateral secures the proper performance of obligations. Payment and delivery are nevertheless separate from clearing and the posting of collateral. The Defiant team presents these distinctions between traditional finance processes and those used in crypto markets.
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Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
