Where your order goes

Watch the order travel.

You tap **Buy**. In a moment it says the order is done. Here's what happened in between.

Three stops

• Your broker the way in — Takes your order and sends it to the exchange. By the end of the day it sends you a **contract note**: a bill listing every trade and its charges.
• The exchange the match — Matches your buy order with someone's sell order at an agreed price. Once matched, the trade is **executed**.
• The clearing corporation the guarantee — Works out who owes what, collects the money from the buyer and the shares from the seller, and makes sure **neither side defaults**.

Each exchange has its own clearing corporation: **NSE Clearing** for NSE and **ICCL** for BSE. You never deal with them directly.

Follow one order

Press send, or tap each stop.

When the shares actually arrive is the next lesson.

Why have a clearing corporation?

Switch between the two cases.

Imagine trading straight with a stranger, with no one in between.

**Remember:** the exchange matches the trade; the clearing corporation makes sure it's completed.

Check — Question 2 of 4

Match each job.

What you now know

• Your order goes from you to your broker to the exchange.
• The exchange matches it with a sell order, and the trade is executed.
• The clearing corporation settles the trade and makes sure neither side defaults.
• Your broker sends a contract note by the end of the trade day.
• You never need to know or trust the person on the other side.