What is an offsetting transaction? - ProProfs Discuss
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What is an offsetting transaction?

Asked by Kayla, Last updated: Nov 30, 2021

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

Offsetting a transaction means closing your position and taking a profit of loss depending on the circumstances. Inthe stock market, for example, if you buy stock and later want to offset the transaction (i.e., close the trade), you would sell your shares. In the stock market, if you sell short shares and later want to offset the transaction, you would buy back shares in the market.

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