offsetting

offsetting
Eliminating the obligation to make or take delivery of a commodity by liquidating a purchase or covering a sale of futures. This is affected by taking an equal and opposite position: either a sale to offset a previous purchase, or a purchase to offset a previous sale in the same commodity, with the same delivery date. If an investor bought an August gold contract on the COMEX, he would offset this obligation by selling an August gold contract on the COMEX. To offset an option, the same option must be bought or sold; i.e., a call or a put with the same strike price and expiration month. The CENTER ONLINE Futures Glossary

Financial and business terms. 2012.

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Look at other dictionaries:

  • offsetting — off set ting adj. Compensating for. Syn: countervailing, compensatory, compensative. [WordNet 1.5] …   The Collaborative International Dictionary of English

  • offsetting — index contribution (indemnification) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • Offsetting — Offset Off*set , v. t. [imp. & p. p. {Offset}; p. pr. & vb. n. {Offsetting}.] 1. To set off; to place over against; to balance; as, to offset one account or charge against another. [1913 Webster] 2. To form an offset in, as in a wall, rod, pipe,… …   The Collaborative International Dictionary of English

  • offsetting — noun a) The act of offsetting b) An amount offset …   Wiktionary

  • offsetting — noun Offsetting is used after these nouns: ↑carbon …   Collocations dictionary

  • offsetting a long option — Offsetting a put by selling a put with the same strike price. Offsetting a call by selling a call with the same strike price. Chicago Mercantile Exchange Glossary …   Financial and business terms

  • offsetting claim — index setoff Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • Offsetting Transaction — In trading, an activity that exactly cancels the risks and benefits of another instrument in the portfolio. An offsetting transaction is used when it is not possible to simply close the original transaction as desired. This frequently occurs with …   Investment dictionary

  • offsetting positions — 1) Taking an equal and opposite futures position to a position held in the cash market. The offsetting futures position constitutes a hedge; 2) Taking an equal and opposite futures position to another futures position, known as a spread or… …   Financial and business terms

  • Offsetting — Отмарывание; Отмарывать (изображение свежеотпечатанного оттиска на обратную сторону вышележащего оттиска в стапеле) …   Краткий толковый словарь по полиграфии

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