In finance, we often come across the terms "liquidated" and "offset". These refer to the closing of a financial position, whether it be a stock, bond, or derivative contract. When a position is liquidated, it means that it has been sold or bought back in the market. On the other hand, offsetting a position means that an equal and opposite position has been taken, resulting in a net zero position. Understanding these concepts is key to successful trading and risk management.
