What is Clearing Price?

Clearing price refers to the price at which the market gives clearance to the security or commodity. The trade is usually carried out by the buyers and sellers and the quantity which is supplied is equal to the quantity which is demanded.

There is always a particular monetary value associated with any security or commodity. Sellers strive to get the highest price for their product while the buyers aim to get the lowest possible price. Thus, the final price at which the transaction is processed is known as the clearing price. It is also known as the equilibrium price. It is influenced by many other factors.