cabinet trade

cabinet trade definition - finance
A trade made in an inactive stock or bond. A cabinet trade also may be an off-market transaction that is completed in order to close out a nearly worthless option contract because it is out of the money.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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A cabinet trade with out of the money stock and index options can be used to take a tax loss for the current year instead of waiting for the next year when the position expires.

Posted by Oleg P 84 days ago.

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