Pairoff

Filed Under »
Dictionary Says

Definition of 'Pairoff'

1. A purchase of securities to offset a previously transacted sale of the same security. 

2. A transaction in securities markets where off-setting buy and sell trades are settled in cash, based on the difference in the prices between the off-setting trades. No securities trade hands; instead the settlement difference between the trades is calculated, and a money wire is sent to the appropriate party.
Investopedia Says

Investopedia explains 'Pairoff'

1. The offsetting position is usually transacted within the same day of the original purchase. This is also referred to as crystallization.

2. Matching trades for pairoff can reduce settlement risks and security wire transfer fees. It is ultimately a form of speculation.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Buy

    1. A ...
  2. Crystallization

    The act of ...
  3. Sell

    The process of ...
  4. Speculation

    The act of ...
  5. Settlement Price

    In derivatives ...
  6. Boom

    A period of time ...
  7. Dow Jones Industrial Average - DJIA

    The Dow Jones ...
  8. Blue-Chip Index

    A stock index ...
  9. Hong Kong Stock Exchange (HKG) .HK

    One of the ...
  10. Hollywood Stock Exchange - HSX

    An online ...

Articles Of Interest

  1. The Secret To Finding Profit In Pairs Trading

    Read about a market-neutral trading strategy using relatively low-risk positions.
  2. How do speculators profit from options?

  3. What is the difference between hedging and speculation?

  4. DCF Valuation: The Stock Market Sanity Check

    Calculate whether the market is paying too much for a particular stock.
  5. How Interest Rates Affect The Stock Market

    Whether you're buying lunch, a home or a stock, you're influenced by interest rates.
  6. Stock Market Simulators: Play Your Way To Profits

    Online stock simulators make learning about stocks as fun and easy as playing a game.
  7. Understanding Interest Rates, Inflation And The Bond Market

    Get to know the relationships that determine a bond's price and its payout.
  8. Why There Are Few Sell Ratings On Wall Street

    We outline reasons that may show why enforcing more sell ratings isn't guaranteed to increase Wall Street's objectivity.
  9. The Roles Of Traders And Investors In The Marketplace

    Discover how these two groups work together to keep the market functioning properly.
  10. Advocacy Group Seeks To Change Name Of S&P 500

    "Brokers Against Unpleasant Sociolinguistics" are campaigning to change the name of the S&P 500 Index.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center