A broker's notice to a customer that an erroneous trade credited to the customer has been voided. For example, if a brokerage firm mistakenly purchases 200 shares of stock for an account when the customer has entered an order for only 100 shares, the firm will send the customer a cancellation for the 200-share trade to void the original confirmation and then will send a new confirmation showing the correct trade.
Main Entry: can·cel·la·tion Variant: alsocan·cel·a·tion Function: noun 1: the act or an instance of cancelling 2: a mark made to cancel something (as a check)