A transaction that cancels or eliminates all market risk in an open position.
Offsetting Transaction
Related Terms
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A One Cancels Other Order (OC) is a set of two orders (usually a limit order and a stop order) placed simultaneously for the same asset.
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Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn. You can look at risk sentiment as the expression of traders’ and investors’ willingness to […]
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Open interest is more than just a number—it’s a lens through which traders can gauge market activity, liquidity, and sentiment
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Position sizing refers to the process of determining the number of units to trade, based on your risk tolerance and the size of your trading account.
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Currency hedging is the creation of a foreign currency position, simply known as a “hedge“, with the purpose of offsetting any gain or loss on the underlying transaction by an equal loss or gain on...