Round Trip – Fincyclopedia
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Derivatives




Round Trip


The opening and subsequent closing of a position such that the original position is returned to before starting to enter into transactions. For example, a round trip may involve a purchase and a subsequent sale or a sale and a subsequent purchase of a cash instrument or a derivative security.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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