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reversing trade

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Financial Dictionary

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 by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Open a Scottrade Account
Take Advantage of Free Real Time News & In-Depth Research! $7 Trades
www.Scottrade.com/Trade
$4.95 Online Trading
$4.95 per trade, market or limit Top Rated Service & Tools 2009
www.TradeKing.com
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