Close out: Difference between revisions
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imported>Doug Williamson (Broaden to derivative instruments generally.) |
imported>Doug Williamson (Identify futures as an example.) |
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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. | ||
Revision as of 10:08, 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 example, for a futures contract this means taking a second offsetting position in order to remove the delivery obligation.
