Offset

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Related to set back: gloating, follow through

Offset

Elimination of a long or short position by making an opposite transaction. Related: Liquidation.

Offset

To change from a long position to a short position or from a short position to a long position. A long position is ownership of a security, while a short position is debt. Thus, to offset a long position is to sell a security, and to close a short position is to buy out the debt.

offset

The liquidation of a futures or option position by purchasing (for a short position) or selling (for a long position) an equal number of identical contracts so that no further obligation exists.

Offset.

You offset an options or futures position by taking a second position in a contract with identical terms, buying if you sold initially or selling if you bought initially.

With the offset, you neutralize any potential obligation you had to fulfill the terms of the contract, and you may make a profit or reduce a loss with the transaction.

For example, if you'd sold an equity call option that is close to being in-the-money, you might buy an offsetting call option. That neutralizes your obligation to deliver the underlying stock if the option you sold is exercised.

In a tax context, you can use capital losses to offset an equivalent dollar amount of capital gains, or up to $3,000 in capital losses to offset ordinary income. In either case, the offset allows you to reduce the tax you owe.

Further, banks have the right of offset if a borrower defaults on a loan. That right allows a bank to seize assets in the borrower's deposit accounts with the bank to reduce or eliminate any loss on the loan.

References in periodicals archive ?
Progressive struggles throughout the world have been set back by the attacks in the USA.
Using a computer imaging program, the blackened stones were set back in their original places, an act of historical veracity that explains the new building's speckled appearance.
The governor's failure has also set back the reform movement, and wiped out much of the political capital he will need to be effective in working with the Legislature.
Digging To Indochina is very highly recommended reading that will linger long in the mind after the book has been finished and set back upon the shelf.
Had Nora Ephron not fallen ill on March 10, 1987, it's safe to say that the course of gay rights may have been set back by at least 10 years.
There are four shuttle flights ahead of Magellan, for example, and even a slight postponement could set back the spacecraft's launching by more than two years, says project manager John Gerpheide of Jet Propulsion Laboratory in Pasadena, Calif.
If California's global warming initiative fails and has a discernible negative impact on the state's economy, it would set back any national or international initiatives to do the same," said Stewart.
Coming off the injury, I was kind of set back, but now I'm back in the position I want to be.
The Wishing Star is an original, entertaining, deftly written story that carries a message of courage, compassion, and friendship while thoroughly enthralling young readers with a fantasy adventure that will be remembered long after the story is finished and the novel set back upon the shelf.
From this central point of orientation, students and teachers can descend to the basement laboratory suite (contained within a recessed masonry plinth to the south), proceed through to the library, bookstore, cafeteria, and reception spaces on the ground floor, or rise to the set back upper level which contains the principal teaching and faculty office spaces.
But it means the court date for the parents' legal battle has been set back by six months until early summer next year.
I think there's a good chance the agreement will be signed,' said one; although, cautioned another observer, "there could always be another Poland' that might set back the negotiations.