Options and FuturesClearinghouse Futures Commission Merchant National Futures Association (NFA) Maintenance Deferred (Delivery) Month Underlying security
Round-Turn (futures)
In finance, the offsetting of a long or short position can be achieved through various means such as entering into an opposite transaction or accepting/delivering the underlying financial instrument or physical commodity. This process, known as offsetting, is a crucial aspect of managing investment risk. By neutralizing the effects of a position, investors can safeguard their portfolios against market fluctuations and potential losses. Essentially, offsetting allows for a more balanced and strategic approach to financial management.
Related terms
Understand the meaning and definition of Clearinghouse in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Futures Commission Merchant in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of National Futures Association (NFA) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Maintenance in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Deferred (Delivery) Month in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Underlying security in the context of stock market, trading, and investments.
MOREExplore other categories


