The settlement process typically involves several steps:
Agreement: The parties agree on the terms of the transaction, including the price, delivery, and payment conditions. Execution: The transaction is executed, often through a trading platform or a direct agreement between the parties. Clearing: The transaction is cleared, meaning that the details are verified, and the obligations of each party are calculated. Transfer: The agreed-upon goods, services, or funds are transferred from the seller to the buyer. Confirmation: The transaction is confirmed, and records are updated to reflect the settlement.