Clearing

Clearing is the act of removing obstacles, vegetation, or other impediments from a space, and the term is used in many contexts. It can refer to physical work, regulatory processes, or procedural steps in various industries, and its precise meaning depends on the field.

In finance, clearing refers to the post-trade process that prepares a transaction for settlement. A clearing house or central counterparty steps between buyer and seller to net obligations, determine margin requirements, and reduce credit risk. Clearing may precede settlement, and is often followed by a separate settlement step. Market structures may specify timelines such as T+2 or T+3 for when delivery and payment occur after a trade.

In aviation, clearance is authorization from air traffic control for a specific movement, such as takeoff, a flight path, or an assigned altitude. Aircraft must obtain clearance before entering controlled airspace or performing certain maneuvers, and clearances can be amended if traffic or weather changes require it.

In land management, clearing denotes the removal of trees, brush, or other vegetation to create space for agriculture, development, or firebreaks. While clearing can enable economic activity, it can also affect ecosystems, increase erosion, and reduce habitat quality. It is often regulated through environmental and planning controls.

In pharmacology and medicine, clearance describes the rate at which a substance is removed from the body, typically expressed as a volume per time. It is a key pharmacokinetic parameter that informs dosing and reflects the function of organs such as the liver and kidneys and overall blood flow.