Where a party to a contract does not make delivery against sale or payment against delivery, the other party can close out the transaction against the defaulting party. The gain or loss arising from the closing out is borne by the defaulter.
You may also like
Screen based trading
Form of trading that uses modern telecommunication and computer technology to combine information transmission with trading in financial markets. This opposed to […]
Ask refers to the price one demands for a security
: A member of a Stock Exchange who acts as an agent for clients and buys and sells shares on their behalf […]
The objective of the book building process is to identify the price that the market is willing to pay for the securities […]