closing transaction investment & finance definition
The final transaction for a particular security during a trading day. Compare opening transaction 1.
An option order that eliminates or decreases the size of an existing option position.
Closing transactions are the final transactions that complete the terms of a contract. Generally, each detail of the contract must be met in order for the closing transaction to take place, and thus complete the business deal.
Closing Transaction
A trade that reduced an investor's position. Closing buy transactions reduce short positions and closing sell transactions reduce long positions.
Closing Transaction
The transaction executed to close an option contract. The holder would sell to close while the writer would buy to close.
Closing Transaction
An order to close out an existing open futures or options contract.
Commission
The fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
Closing transaction
Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction.
Closing TRIN
See: TRIN ...
Close / Closing transaction
A reduction or an elimination of an open position by the appropriate offsetting purchase or sale. An existing long option position is closed by a selling transaction.
An option purchase may be in connection with either an opening or a closing transaction.
Calendar spread: Another name for a time spread.
closing transaction The fulfillment of a contract that causes an existing investment to end. A sale... cloud on title Any encumbrance or claim that might invalidate a title to a property. Also known as title defect.
Closing Transaction The purchase or sale of an option that offsets an existing open position. For example, if your first trade is to buy an option, that contract is considered open and is factored into the open interest until you sell it.
Open / Close: Describes open and closing transactions. In more detail, "To Open" means your initial transaction to enter you in a position. "To Close" is used to describe a transaction that will exit you from a position.
A closing transaction takes place at a later date to offset the initial buy or sell. An investor who initially buys a put option adds to the open interest.
This form gives a picture of the closing transaction, and provides each party with a complete list of incoming and outgoing funds. "Buyers" are referred to as "borrowers" on this form even if no loan is involved.
Secondary Market
A market that provides for the purchase or sale of previously sold or bought options through closing transactions.
Open Interest - The net total of outstanding open contracts in a particular option series. An opening transaction increases the open interest, while any closing transaction reduces the open interest. Read More About Volume and Open Interest.
many of those were bought and how many were sold by various option traders. The answer is you have no way to know for sure. That is why when you buy or sell an option, the transaction needs to be put in as either an opening or a closing transaction.
Although the cash covered put offers a somewhat lower per annum yield than the covered call (51.0% versus 57%), it offers investors the advantage of no closing transactions if the stock ends up above the $22.50 strike price.
 See also: Transaction, Action, Investment, Options, Option
  
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