successor position

Definition

In the application of wash sale rules involving a straddle, a position created 30 days prior to or following the disposition of a loss position to offset a second position. The new position succeeds the previous loss position in the straddle which requires that the trader must defer the loss on the closed position to the extent it is less than any unrecognized gain in the successor position at the end of the tax year.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
succession successor trustee