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.

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.

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.
References in periodicals archive ?
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.
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.
Ideal candidates will be able to demonstrate sound moral character and ethical behavior, a meaningful role in originating and closing transactions, leadership qualities, solid teamwork skills, significant contributions to their firm's growth and success and participation in charitable endeavors.
We have access to more capital for acquisitions and more expertise in closing transactions than most of our competitors.
Carey, an industry leader and sale-leaseback pioneer, who has established a presence in Europe and has a track record of closing transactions on time and as proposed.
To reach that level of expertise, brokers that are having problems closing transactions today are going to have, to "kick it up a notch".