Switching
Also found in: Dictionary, Thesaurus, Medical, Idioms, Encyclopedia, Wikipedia.
Related to Switching: Circuit switching
Switching
Liquidating a position and simultaneously reinstating a position in another futures contract of the same type.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Switching
1. The act of closing a position and opening another with better prospects. This term often applies to securities and mutual funds. See also: Load.
2. In futures, the act of liquidating a contract and using the proceeds to buy another on the same type with a longer maturity. This is often done to avoid receiving delivery of the underlying.
2. In futures, the act of liquidating a contract and using the proceeds to buy another on the same type with a longer maturity. This is often done to avoid receiving delivery of the underlying.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved