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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.
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The purchase and sale of the same security. Some brokerage firms offer a discounted commission if a round trip is completed within a certain length of time. Also called round turn.
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.