Close out: Difference between revisions
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imported>Doug Williamson (Broaden to derivative instruments generally.) |
imported>Doug Williamson (Add link.) |
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Close out is the early termination of an obligation under a derivative instrument, before the normal final maturity. | Close out is the early termination of an obligation under a derivative instrument, before the normal final maturity. | ||
For a futures contract this means taking a second offsetting position in order to remove the delivery obligation. | For example, for a futures contract this means taking a second offsetting position in order to remove the delivery obligation. | ||
== See also == | == See also == | ||
* [[Futures]] | * [[Close]] | ||
* [[Forward contract]] | |||
* [[Futures contract]] | |||
* [[ICE Swap Rate]] | * [[ICE Swap Rate]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Latest revision as of 08:28, 24 August 2022
Derivative instruments - early termination.
Close out is the early termination of an obligation under a derivative instrument, before the normal final maturity.
For example, for a futures contract this means taking a second offsetting position in order to remove the delivery obligation.
