to settle a debt or to convert to cash.This literally means to do away with. Glossary of Business Terms
Selling (or purchasing) futures contracts of the same delivery month purchased (or sold) during an earlier transaction or making (or taking) delivery of the cash commodity represented by the futures contract. Taking a second futures or options position opposite to the initial or opening position. Chicago Board of Trade glossary
Refers to closing an open futures position. For an open long, this would be selling the contract. For a short position, it would be buying the contract back ( short covering, or covering his short). The CENTER ONLINE Futures Glossary
To offset an existing position. Chicago Mercantile Exchange Glossary

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liquidate liq‧ui‧date [ˈlɪkwdeɪt] verb FINANCE
1. [transitive] to sell an investment for cash:

• Holdings of units can be liquidated quite quickly.

2. [intransitive, transitive] if someone liquidates a company, or if the company liquidates, all of its assets are sold in order to pay its debts. Any money left after that is returned to shareholders and the company stops operating:

• Rather than trying to reorganize, the airline will liquidate.

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   To close or offset a long or short trading position to realize a gain or loss.

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liquidate UK US /ˈlɪkwɪdeɪt/ verb
[I or T] LAW, FINANCE if a business liquidates or is liquidated, it is closed so that its assets can be sold to pay its debts: »

The only way for management to return value to shareholders in the short term is to liquidate the company and return the cash.


As the customer of a brokerage that's being liquidated, you should receive a warning in the mail or see notices in the newspaper.

[T] ACCOUNTING, FINANCE to sell something in order to get cash: »

She liquidated the stock and pulled about $10,000 from savings to pay off her debt.


In the event of a reclamation, the Fund may liquidate sufficient shares from a shareholder's account to reimburse the government or the private source.

[T] ACCOUNTING, FINANCE to pay off a debt: »

They were required to liquidate the debt within 30 days of the date due.

Financial and business terms. 2012.


Look at other dictionaries:

  • liquidate — liq·ui·date / li kwə ˌdāt/ vb dat·ed, dat·ing vt 1: to determine by agreement or litigation the precise amount of; also: to settle (a debt) by payment or other adjustment 2 a: to determine the liabilities and apportion the assets of esp. in… …   Law dictionary

  • Liquidate — Liq ui*date (l[i^]k w[i^]*d[=a]t), v. t. [imp. & p. p. {Liquidated} ( d[=a] t[e^]d); p. pr. & vb. n. {Liquidating}.] [LL. liquidatus, p. p. of liquidare to liquidate, fr. L. liquidus liquid, clear. See {Liquid}.] 1. (Law) To determine by… …   The Collaborative International Dictionary of English

  • liquidate — liquidate, liquidize Liquidate is the word used in business contexts and in the sense ‘eliminate by killing’. Liquidize is a more recent word meaning ‘to make liquid’ (in physical senses) and is now principally used in the context of the kitchen… …   Modern English usage

  • liquidate — [v1] pay; change into cash cash, cash in, cash out, clear, convert, discharge, exchange, honor, pay off, quit, realize, reimburse, repay, satisfy, sell off, sell up, settle, square; concept 330 Ant. invest, keep liquidate [v2] destroy, dissolve… …   New thesaurus

  • liquidate — [lik′wi dāt΄] vt. liquidated, liquidating [< ML liquidatus, pp. of liquidare, to make liquid or clear < L liquidus, LIQUID] 1. to settle by agreement or legal process the amount of (indebtedness, damages, etc.) 2. to settle the accounts of… …   English World dictionary

  • liquidate — (v.) 1570s, to reduce to order, to set out clearly (of accounts), from L.L. or M.L. liquidatus, pp. of liquidare to melt, make liquid or clear, clarify, from L. liquidus (see LIQUID (Cf. liquid)). Sense of clear away (a debt) first recorded 1755 …   Etymology dictionary

  • liquidate — ► VERB 1) wind up the affairs of (a company) by ascertaining liabilities and apportioning assets. 2) convert (assets) into cash. 3) pay off (a debt). 4) informal eliminate; kill. DERIVATIVES liquidation noun liquidator noun …   English terms dictionary

  • liquidate — /lik wi dayt /, v., liquidated, liquidating. v.t. 1. to settle or pay (a debt): to liquidate a claim. 2. to reduce (accounts) to order; determine the amount of (indebtedness or damages). 3. to convert (inventory, securities, or other assets) into …   Universalium

  • liquidate — [[t]lɪ̱kwzɪdeɪt[/t]] liquidates, liquidating, liquidated 1) VERB To liquidate a company is to close it down and sell all its assets, usually because it is in debt. [TECHNICAL] [V n] A unanimous vote was taken to liquidate the company. Derived… …   English dictionary

  • liquidate — UK [ˈlɪkwɪdeɪt] / US [ˈlɪkwɪˌdeɪt] verb Word forms liquidate : present tense I/you/we/they liquidate he/she/it liquidates present participle liquidating past tense liquidated past participle liquidated 1) a) [intransitive/transitive] business to… …   English dictionary

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