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A transaction that cancels or eliminates all market risk in an open position.
Offsetting Transaction
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Related Terms
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Risk sentiment is a term used to describe how financial market participants (traders and investors) are...
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Forex stands for “foreign exchange” and refers to the buying or selling of one currency in exchange for...
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A forward contract is a non-standardized contract between two parties, who enter into an agreement to...
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RORO stands for “Risk On, Risk Off”. RORO describes a market environment where price behavior responds to...
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Currency hedging is the creation of a foreign currency position, simply known as a “hedge“, with the...
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