Investor's wiki



What Is Assign?

Overall, assign is to transfer the rights or property starting with one person or business then onto the next. An assignment can be any transfer of any kind of rights. In the financial markets, the term "assign" generally connects with the party that is required to deliver on a options contract. In the more extensive business world, it might likewise allude to the transfer of brand names, banknotes, or other property rights. Mortgage assignments include transferring mortgage deeds, while lease assignments transfer lease contracts.

Understanding Assign

To assign means one of two moves made in transferring rights. It alludes either to the transfer of property rights starting with one individual or entity then onto the next individual or entity or when an options contract is exercised. At the point when an options contract is exercised, the owner of the contract assigns an options writer to the obligation to satisfy the requirements of the contract.

In the options and futures contract markets, assign is the matching of counterparties. The cycle is random and carried out by clearinghouses and brokerages. When the assignment is made, the underlying securities or commodities are delivered to the holders of developing or exercised contracts.

For instance, on the off chance that one trader is hoping to purchase a May futures corn contract and another trader is hoping to sell a May futures corn contract, the clearinghouse would match the solicitations of the two traders, assigning them the suitable contracts. The actual traders won't need to look for the comparing contract however just execute their orders, which are then matched by the clearinghouse.

Not all options contracts will be exercised or offered. The ones that are exercised or offered must be settled with the delivery of the underlying security. These are randomly assigned to brokerages that, thus, randomly select which of their clients will be assigned.

During an assignment of options or futures contracts, the clearinghouse assigns an option writer who will be the required buyer or seller of the underlying contract upon its exercise.

Assign and Options

Options offer the right yet not the obligation to buy an underlying asset at a specific price. In the U.S. markets, options can be exercised whenever, while options in the European markets are exercised exclusively on the option expiration date. Assuming an option is exercised, the assignment will be made right away.

At the point when an option is exercised, the option writer, who is the call seller, in this case, must satisfy the obligations of the contract. The call writer could be committed to sell a specific number of underlying securities at a specific cost, for instance.

Options buyers guess on the future developments of stocks or different assets. Option buyers accept that the underlying asset will move one way, while option sellers, who are called writers, are betting that the asset moves the other way.

Brokerages and clearinghouses are expected to interface buyers and sellers of options contracts. The seller and writer of a call option will sell a set number of shares at a set price on the off chance that the option is exercised. On the off chance that the option is called, the brokerage assigns a client with a short position, again at random, to deliver the stock to one more client with a long position in a similar contract. The brokerage will randomly choose the counterparty who must deliver the asset when the contract expects it to be delivered.

Assign and Property

Concerning property, assign alludes to the transfer of rights. This can allude to any asset, whether unmistakable or intangible, property, or contract. The assignment is completed by means of a settled upon written document.

For instance, a mortgage assignment is the point at which the mortgage deed permits an individual interest in a property in return for payments received. Many banks that have mortgages sell their mortgages to different lenders in return for a lump payment to free up their balance sheet to make new mortgages. The bank would allocate their mortgages to another lender.

One more form of property assignment incorporates wage assignments, where a court rules that a portion of a person's wages must be kept to make specific payments, for example, alimony.


  • All the more generally, to assign is to transfer rights or property starting with one party then onto the next.
  • To assign in the options market is to randomly match buyers and sellers for developing or exercised options contracts.
  • The assigned party is required to deliver the assets underlying the options to the contract holder at the date laid out by the contract.