A transaction in which the seller ( writer) of an option terminates his/her obligation. In the case of a listed option, a seller effects a closing transaction by purchasing a new listed option having the same terms as the option which is being sold.
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.
An order to close out an existing open futures or options contract.
Refers to the sale or purchase of an option contract which offsets a previously established open position.
A reduction or an elimination of an open position by the appropriate offsetting purchase or sale. An existing long option position is closed by a selling transaction. An existing short option position is closed by a purchase transaction. This transaction will reduce the open interest for the specific option involved.
A purchase or sale that liquidates (offsets) an existing position. That is, selling an option that was previously purchased or buying back an option which was previously sold.
Buy or sell transaction that eliminates existing positions.
Sale or purchase of an option contract to eliminate or undo an existing position.
The transaction executed to close an option contract. The holder would sell to close while the writer would buy to close.
A trade which reduces or decreases the net position of an investor.
A trade that reduced an investor's position. Closing buy transactions reduce short positions and closing sell transactions reduce long positions. See also Opening Transaction.
A transaction in which at some point prior to expiration, the option holder makes an offsetting sale of an identical option, or the option writer makes an offsetting purchase of an identical option. A closing transaction in an option reduces or cancels out an investor's previous position as the holder or the writer of that option.
An option that is purchased or sold to eliminate an existing long or short position. See: Closing Purchase; Closing Sale; Long Position; Options; Short Position
The transaction the writer of an option undertakes to end his or her obligation.
