Clearing is the procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller in a transaction to reconcile orders between transacting parties. Clearing is necessary for the matching of all buy and sell orders in the market.
National Securities Clearing Corporation Limited (NSCCL) is the clearing and settlement agency for all deals executed on the Currency Derivatives segment.
Forex transactions are settled two days after (T+2).
Check out Currency Derivatives Course for better understanding.