Skip to main content
Options and Futures

Closing Sale

, while simultaneously establishing a short position in the same series. When a seller aims to decrease or remove their long position in a specific set of options and at the same time establish a short position in that same set, it is called a transaction. This strategy is often used to manage risk and protect against potential losses. By understanding this concept, you can make informed decisions in the world of finance.

Related terms

Supply, Law of

Understand the meaning and definition of Supply, Law of in the context of stock market, trading, and investments.

MORE
Commodity Trading Adviser

Understand the meaning and definition of Commodity Trading Adviser in the context of stock market, trading, and investments.

MORE
At-the-Money Option

Understand the meaning and definition of At-the-Money Option in the context of stock market, trading, and investments.

MORE
Expanded Traded Hours

Understand the meaning and definition of Expanded Traded Hours in the context of stock market, trading, and investments.

MORE
Cheapest to Deliver

Understand the meaning and definition of Cheapest to Deliver in the context of stock market, trading, and investments.

MORE
Premium (futures)

Understand the meaning and definition of Premium (futures) in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91