Round-trip trade


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Round-trip trade

The purchase and sale of a security within a short period of time.

Round Trip

In futures and equities, to take a position and then later to close it. For example, an investor who buys a futures contract and then sells it and an investor who short sells a contract and then covers it are both round tripping. The practice is also called a round turn.
References in periodicals archive ?
With the resignations of two of the three CEOs whose companies were involved in the round-trip trades, attention has now moved to the third CEO, Steve Letbet-ter, chairman, president and CEO of Reliant Energy and its subsidiary, Reliant Resources.
Aquila has already responded to various requests by the Federal Energy Regulatory Commission (FERC) by stating that it did not engage in round-trip trades and that all its trades were conducted for legitimate business purposes.
NYSE:ILA) announced that it responded today to the Federal Energy Regulatory Commission (FERC) data requests on gas trading in the Western Systems Coordinating Council and Texas, and again confirms it has not conducted round-trip trades.