Close out: Difference between revisions
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imported>Doug Williamson m (Added 1 line space before see also) |
imported>Doug Williamson (Broaden to derivative instruments generally.) |
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''Derivative instruments - early termination''. | |||
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 a futures contract this means taking a second offsetting position in order to remove the delivery obligation. | ||
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== See also == | == See also == | ||
* [[Futures]] | * [[Futures]] | ||
* [[ICE Swap Rate]] | |||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Revision as of 09:44, 1 September 2018
Derivative instruments - early termination.
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.
