reversing trade

Reversing trade

Entering the opposite side of a currently held futures position to close out the position.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Reversing Trade

A term for closing a position. It is usually used with respect to futures positions.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

reversing trade

In futures trading, a trade that brings an investor's position in a particular contract back to zero. For example, the purchase of a stock index contract that has previously been sold short is an example of a reversing trade.
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.
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