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Business Definition for: fail position
Dictionary of Finance and Investment Terms
fail position

securities undelivered due to the failure of selling clients to deliver the securities to their brokers so the latter can deliver them to the buying brokers. Since brokers are constantly buying and selling, receiving and delivering, the term usually refers to a net delivery position-that is, a given broker owes more securities to other brokers on sell transactions than other brokers owe to it on buy transactions.

See also fail to receive , fail to deliver
Related Terms:
fail to receive

situation where the broker-dealer on the buy side of a contract has not received delivery of securities from the brokerdealer on the sell side. As long as a fail to receive exists, the buyer will not make payment for the securities.

fail to deliver

situation where the broker-dealer on the sell side of a contract has not delivered securities to the broker-dealer on the buy side. A fail to deliver is usually the result of a broker not receiving delivery from its selling customer. As long as a fail to deliver exists, the seller will not receive payment.

Referring Terms:
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