reversing trade

reversing trade definition - business

reversing trade

In futures trading, a trade that brings an investor's position in a particular contract back to zero. The purchase of a stock index contract that has previously been sold short is an example of a reversing trade.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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