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General TradingC
Clearing Price
The clearing price is the equilibrium price at which the quantity of a security or commodity supplied equals the quantity demanded. In an auction or market context, it is the price at which all buy and sell orders are matched and executed. Understanding the clearing price is essential for traders participating in auctions, IPOs, and energy markets where supply and demand are matched at a single price point.
Example
“The IPO clearing price was set at $24 per share after the book-building process matched institutional supply and demand.”