Evening Up

DEFINITION of 'Evening Up'

A slang phrase used to describe an investor who closes a position by making an offsetting transaction. An investor will eliminate his or her exposure to a security's risk by evening up.

Also referred to as "even up."

BREAKING DOWN 'Evening Up'

Evening up in the equity market involves selling a stock that one currently holds, or buying to cover a short position. In the context of futures, one would even up by entering an opposite position in the contract.

An investor could tell his or her broker to "even up" a current position. Alternatively, one could say "I avoided the price drop by evening up early."

RELATED TERMS
  1. Take A Report

    A slang phrase signifying that an individual's trade order has ...
  2. Each Way

    A slang phrase used when a broker earns commissions from both ...
  3. Cover

    The act of completing an offsetting transaction so as to eliminate ...
  4. Close Position

    Executing a security transaction that is the exact opposite of ...
  5. Taking The Street

    A slang phrase referring to the hedge fund tactic of buying large ...
  6. Free and Clear

    A slang phrase describing the situation of someone when he or ...
Related Articles
  1. Trading

    Can You Buy Stock Insurace? 3 Strategies to Limit Stock Losses

    Investors can use derivative securities to effectively buy insurance on their individual holdings or on their portfolio as a whole.
  2. Managing Wealth

    Offset Risk With Options, Futures And Hedge Funds

    Though all portfolios contain some risk, there are ways to lower it. Find out how.
  3. Retirement

    Consolidating Your Retirement Money – Evaluate Performance

    Now that you know where you're going, it's time to see how well what you have matches your investment profile and objective(s).
  4. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  5. Markets

    Why You Should Never Short a Stock

    Short selling a stock means you are betting on the stock decreasing in price. Before taking on this investment, you should fully understand the risks
  6. Retirement

    Evaluate the Performance of Your Investments

    Congratulations, you’re halfway done! Now that you know what you have along with some idea of how to accomplish your goals, it’s time to go over your portfolio to see whether it fits ...
  7. Trading

    Short Selling Risk Can Be Similar To Buying Long

    If more people understood short selling, it would invoke less fear, which could lead to a more balanced market.
  8. Trading

    Offset Risk Without Investing Abroad

    With a little know-how, you can keep risk from topling your portfolio of domestic equities.
  9. Personal Finance

    Money Market Accounts vs. Savings Accounts

    An interest-bearing account that pays a higher interest rate than a savings account and gives the account holder limited check-writing ability.
  10. Investing

    Short Squeeze

    A short squeeze refers to a jump in a stock's price, forcing a large number of short sellers to close their position, which in effect pushes the price even higher. When an investor shorts a stock, ...
RELATED FAQS
  1. What is the difference between risk avoidance and risk reduction?

    Learn what risk avoidance and risk reduction are, what the differences between the two are, and some techniques investors ... Read Answer >>
  2. What's the difference between a long and short position in the market?

    Understand long and short positions for stocks and option contracts; combine long and short positions for added leverage ... Read Answer >>
  3. Where do investors tend to put their money in a bear market?

  4. What is the difference between diversification and hedging?

    Learn what diversification and a hedge are, how investors can diversify and hedge their investments, and the main difference ... Read Answer >>
  5. When short selling, how long should you hold on to a short?

    Explore the reasons for short selling and the various factors that influence how long an investor may wish to maintain a ... Read Answer >>
  6. Is going long considered to be less risky than going short?

    Learn what the difference between going long and going short, why it is riskier to be short than long, and the risk associated ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center