What is close?

sometimes referred to as offset or evenly up, closing includes a reduction or termination of the current position on the investment. At the same time, the investor will perform the opposite transaction using the same basic security. In fact, the result of the closure strategy is to maintain the amount of investment, but the possible position of the investor to realize a greater return on basic security.

One of the simplest ways to understand the closure function is to use a futures contract. In fact, the owner of the possibility of futures may decide to get out of the existing contract on the basis of a Futures sale contract. Once the buyer is secured by contracts, the investor can freely conclude another futures contract with more pleasant conditions, but still associated with the same basic security.

Regarding the use of resources, the aim of the closure is to maximize the return in the minimization component of investment necessary to ensure the revenue. So if an investor encounters an option that brings betterResults for smaller investments, take steps to meet the conditions of the current possibility and then proceed to ensure a new possibility.

Close to include a change in a long or short position associated with an investment involving security and at the same time undertook into an enemy position with a new investment that is based on the same security. In other words, the investor may decide to reduce or remove a long position and create a new transaction using a short position based on the same security. If the original and new positions are performed as part of the investor's anticipation, this activity will lead to a greater return. However, the details are not sure in any way. In the event that Underlying Security is experiencing a decline for some reason, the investor could cost more money from the output than if he simply maintained his original position.