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


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.


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.


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 ?
The Contractor shall supply and deliver to the County, on an as needed basis, Offset Press and Bindery Supplies as
Lease for a period of 7 years of an offset press for the new provincial printing.
Installation and instruction of a Heidelberg Speedmaster (two color offset press, adjustable to perfecting, model SX-P 52-2).
Offset press given by the candidate must be able to ensure that production.
A seven-unit VSOP 520 offset press with varnishing was launched at Drupa 2004, and presented at the last Labelexpo Americas.
Reproscan, Mumbai-based announced that it has reinforced its print operations by injecting in a Presstek 52DI AC digital offset press.
Prnt Source's print facility features a Xerox 770, Ricoh 905 press, two four-colour offset presses, a single-colour offset press, a FFEI CTP platesetter and entire pre-press and post-press set-up.