Close out: Difference between revisions

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For a futures contract this means taking a second offsetting position in order to remove the delivery obligation.
''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.
 


== See also ==
== See also ==
* [[Futures]]
* [[Close]]
* [[Forward contract]]
* [[Futures contract]]
* [[ICE Swap Rate]]


[[Category:Manage_risks]]
[[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.


See also