reversing trade

Reversing trade

Entering the opposite side of a currently held futures position to close out the position.

Reversing Trade

A term for closing a position. It is usually used with respect to futures positions.

reversing trade

In futures trading, a trade that brings an investor's position in a particular contract back to zero. For example, the purchase of a stock index contract that has previously been sold short is an example of a reversing trade.