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Related to set back: gloating, follow through


Elimination of a long or short position by making an opposite transaction. Related: Liquidation.


To change from a long position to a short position or from a short position to a long position. A long position is ownership of a security, while a short position is debt. Thus, to offset a long position is to sell a security, and to close a short position is to buy out the debt.


The liquidation of a futures or option position by purchasing (for a short position) or selling (for a long position) an equal number of identical contracts so that no further obligation exists.


You offset an options or futures position by taking a second position in a contract with identical terms, buying if you sold initially or selling if you bought initially.

With the offset, you neutralize any potential obligation you had to fulfill the terms of the contract, and you may make a profit or reduce a loss with the transaction.

For example, if you'd sold an equity call option that is close to being in-the-money, you might buy an offsetting call option. That neutralizes your obligation to deliver the underlying stock if the option you sold is exercised.

In a tax context, you can use capital losses to offset an equivalent dollar amount of capital gains, or up to $3,000 in capital losses to offset ordinary income. In either case, the offset allows you to reduce the tax you owe.

Further, banks have the right of offset if a borrower defaults on a loan. That right allows a bank to seize assets in the borrower's deposit accounts with the bank to reduce or eliminate any loss on the loan.

References in periodicals archive ?
I've seen sizing dies with problems, and enough times to say, "What's next?" Generally, the problems are from inadequate capacity to set back the case shoulder.
"Progressive struggles throughout the world have been set back by the attacks in the USA.
Coaching point: Any time the center falls forward after the snap, his weight had not been set back. If he snaps the ball too high, he had probably not bent his knees enough.
Pat Buchanan: Remembered primarily for giving a convention address so vicious and negative that it set back hate speech a full six months, Buchanan steadfastly refuses to compromise his lack of ideals, seeking the Presidency as a Pit Bully pulpit.
One can only hope that this symbol miscue will not set back the environmental cause or result in decreased book sales.
It is well set back from the road and has a good-sized, well-maintained garden at the front and back.
"It would not only set back the game, it would set back the anti-racist initiative."
With a commanding position at the junction of Valley Drive and Durham Road, in Low Fell, Gateshead, the imposing Stanley Thompson-built property has a corner plot and is set back from the road.
The decision set back hopes of stemming the crisis after six days of violence that has left 38 people dead and destabilised the country.
That is called "set back." We have set back the shoulder on this case .003".
This set back just spurred Marine to greater things and Parle (60 mins) and a third from Shaun Tuck on 74 minutes capped a fine display.