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Investments glossary

Offsetting Transaction


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Quotes of the day:

Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.

— Moliere

An offsetting transaction cancels out the effects of another transaction. Offsetting transactions can occur in any market, but typically offsetting transactions refer to the options, futures, and exotic instrument markets. An offsetting transaction can mean closing a transaction or taking another position in the opposite direction to cancel the effects of the first.

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