Definitions for "Out Trade"
A trade which cannot be cleared by a clearinghouse because the data submitted by the two clearing members involved in the trade differs in some respect. All out trades must be resolved before the market opens the next day.
A futures trade by a floor trader which the clearing house cannot march with the other party to the trade, as recorded at the time of the trade.
A trade which cannot be cleared by a clearinghouse because the data submitted by the two clearing members involved in the trade differs in some respect. Mistakes are a fact of life in the futures markets, where human beings manually process hundreds or even thousands of customer orders per day by interacting with others in often tumultuous and chaotic open outcry, auction-style trading pits. Under such conditions, errors and miscommunications are from time to time inevitable, notwithstanding efforts to minimize such occurrences to the extent possible. Early each morning at exchanges around the U.S., miscommunications between and among floor brokers, local traders in the pits, and the brokerage companies clearing trades and carrying customer accounts on their books are reconciled by the parties or their representatives.