Evening Up

Dictionary Says

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."
Investopedia Says

Investopedia explains '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 Definitions

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    1. The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.2. In the context of options, the buying of an options ...
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  • Short (or Short Position)

    1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.2. In the context of options, it is the sale (also known as "writing") of ...
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  • Offset

    1. To liquidate a futures position by entering an equivalent, but opposite, transaction which eliminates the delivery obligation.2. To reduce an investor's net position in an investment ...
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    • Position

      The amount of a security either owned (which constitutes a long position) or borrowed (which constitutes a short position) by an individual or by a dealer. In other words, it's a trade ...
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    • Futures Contract

      A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. ...
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    • Offsetting Transaction

      In trading, an activity that exactly cancels the risks and benefits of another instrument in the portfolio. An offsetting transaction is used when it is not possible to simply close the ...
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