- Futures. Covering a futures market short position by purchasing an offsetting long position, or taking delivery of securities or commodities.
- Securities. The process whereby a broker or dealer bank, after purchasing securities that a selling broker cannot deliver, completes the transaction with another source at current market prices and charges the original selling broker the difference in cost.
Options trading: procedure whereby the responsibility to deliver or accept stock can be terminated.
Securities: transaction between brokers wherein securities are not delivered on time by the broker on the sell side, forcing the buy-side broker to obtain shares from other sources.
Options trading: procedure whereby the responsibility to deliver or accept stock can be terminated. In a transaction called buying-in or closing purchase, the writer buys an identical option (only the premium or price is different). The second of these options offsets the first, and the profit or loss is the difference in premiums.
Securities: transaction between brokers wherein securities are not delivered on time by the broker on the sell side, forcing the buy side broker to obtain shares from other sources.
