closing transaction

Closing transaction

Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Closing Sale

1. Any transaction that closes a position, especially a long position.

2. An option buyer's sale of a second option that cancels out the provisions of the previous option by having the same provisions.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

closing transaction

1. The final transaction for a particular security during a trading day. Compare opening transaction.
2. An option order that eliminates or decreases the size of an existing option position. An investor who repurchases three options that have been sold short is entering into a closing transaction. Also called closing purchase, closing sale. Compare opening transaction. See also close a position.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Additional terms of the closing transaction were not disclosed.
Separately today, 10K Jan 40 calls print $2.40 and appears to be a closing transaction, as it matches 10K for $2.80 on 4/8.
The closing transaction follows completion of the European merger-clearance process.
The big trade in the automaker today is a 40K lot of Jan 8 puts for 6c and probably a closing transaction - the contract is expiring in two days and has 275.6K open interest, which is the largest OI in Ford and the eight biggest OI across all listed options contracts.
Maxwell Technologies said that the purchase price is subject to working capital and closing transaction adjustments.
The risk-reversal in the June term appears to be a closing transaction because trade history shows a matching trade on 4/19 when 104K Jun 51 calls sold at 30c to buy 104K Jun 44 - 46 put spreads bought for 35c.
Working closely with the CBRE Tri-State Investment Team which arranged the sale of the property greatly enhanced our ability to effectuate a quick, problem free closing transaction."
She stated that Nieginski claimed that when the closing transaction to acquire the building was taking place, the demand for the $115,000 was made by Shpak and his wife and attorney Berfond.
In addition, Romano claimed that Gutterman signed the purchase agreement for the house which stated that he was accepting the house "as is," and that all representations previously made were merged in the deed and would not survive the closing transaction.
In order for a client to hold his broker responsible for representations made to him, the client should insist that the representations be in writing and that the broker agree that they will survive the contract of sale and the closing transaction.
During his time at XIN, Tavsanoglu was responsible for sourcing, negotiating, structuring and closing transactions in multi-family investments, ground-up condo developments and residential conversion projects.
The company has secured fully-committed debt financing from SummitView Capital, a highly respected private equity firm with a track record of successfully closing transactions in the United States and around the world.