Liquidation is a procedure to terminate the existing legal relationship, dispose of its remaining property and make it disappear, including calculation and verification. Liquidation is a legal procedure. When an association is cancelled, it must be liquidated.
Paid-in refers to the calculation and distribution of members' trading deposits, profits and losses, handling fees, settlement funds and other related funds according to the trading results and relevant regulations of the Exchange. The settlement includes the settlement of members by the exchange and the settlement of customers by the futures brokerage company, and the calculation results will be included in the customer's margin account.
Delivery refers to the act of performing the contract within the agreed time according to the liquidation results in the process of securities trading. It means that both parties to the transaction complete the receipt and payment of securities and currency related to the transaction on the next day, that is, the buyer receives the securities and the seller receives the currency.
2. Different roles
The significance of liquidation and company liquidation is that the company liquidation system is a very important part of the company's demise. Its importance lies not only in protecting the rights and interests of shareholders, but also in protecting the rights and interests of creditors. Settlement is a kind of social bookkeeping, and its functions are: facilitating commodity trading, shortening the settlement process and time, accelerating capital turnover, and accelerating the smooth progress of social expansion and reproduction. Save cash and reduce currency issuance, thus saving a lot of circulation management expenses and helping to strengthen market currency circulation management. Through the settlement process, the capital movements of various departments and units of the national economy are counted, reflected and supervised. Delivery is the collection and payment of net receivables and payables (secured securities and prices), and the actual transfer of property takes place.
3. The content involved is different.
Liquidation does not involve the transfer of creditor's rights and debts, but promotes reconciliation. Liquidation = liquidation and settlement.
Clearing is the promotion of settlement. Liquidation = liquidation and settlement.
Settlement is the final result of paying off creditor's rights and debts in business activities; Liquidation is the process of clearing the final result of the creditor-debtor relationship in the interbank fund account. Settlement is the transfer of creditor's rights and debts.
The essence of settlement is to realize the receipt and payment of securities and prices according to the settlement results, thus ending the trading process.