Meaning CLOSING TRANSACTION: Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction
More terms such as Closing transaction in Dictionary C.
- Definition Capital Gains Distribution:
- Examples A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders closing transaction definition.
- Definition Closing Purchase:
- Examples A transaction in which the purchaser's intention is to reduce or eliminate a short position in a stock, or in a given series of options closing transaction explain.
- Definition Collection:
- Examples The presentation of a negotiable instrument for payment, or the conversion of any accounts receivable into cash closing transaction what is.
- Definition Closing Range:
- Examples Also known as the range. The high and low prices, or bids and offers, recorded during the period designated as the official close. Related: Settlement price closing transaction meaning.
- Definition Combination Strategy:
- Examples A strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle closing transaction abbreviation.
