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Offset
What does it mean?
1. To liquidate a futures position by entering an equivalent, but opposite, transaction.
2. To offset an initial purchase, a sale is made; to offset an initial sale, a purchase is made.
In Other Words...
1. Investors will offset futures contracts and other investment positions in order to remove themselves from any associated liabilities.
2. For example, if you wanted to offset a long position in a stock, you can sell an identical number of the stock. After offsetting your position, you will no longer participate in any gains or losses to the position.
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Related Terms
Forward Contract | Futures Contract | Long | Position | Short
1 |
A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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