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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Closing transaction  

Definition 1.

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.
 

Definition 2.

The fulfillment of a contract that causes an existing investment to end. A sale could be a closing a transaction for a long position, and a purchase could be a closing position for a short position.
 
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