In accounting, reconciliation is the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. Reconciliation is used to ensure that the money leaving an account matches the actual money spent.
What does reconciliation in finance mean?
Definition: Reconciliation is the process of comparing transactions and activity to supporting documentation. Further, reconciliation involves resolving any discrepancies that may have been discovered.
What does rolling forward mean?
Roll forward refers to extending the expiration or maturity of an option, futures contract, or forward by closing the initial contract and opening a new longer-term contract for the same underlying asset at the then-current market price.
How do you roll a call forward?
Rolling forward involves a buy-to-close trade on a current short option, replaced with the sale of a later-expiring option on the same underlying stock. The strategy can be used for either calls or puts. The intention is to avoid or delay exercise when the option has gone in the money or threatens to before expiration.
What is the definition of a rolling contract?
A rolling contract is a contract that has no defined cancellation date and ends only upon the request of one of the involved parties.
What are the duties of a contract reconciliation?
Contract Reconciliation Duties. When a contract ends, the amount of money budgeted for the contract should match what was paid out. In practice, there may be mistakes, bonuses that weren’t earned, withheld fees and other places in the contract budget where the books don’t balance. Contract reconciliation is the process of explaining…
What happens when you roll a futures contract?
A trader who is going to roll their positions may choose to switch to the next month contract when volume has reached a certain level in that contract. When rolling forward, a trader will simultaneously offset his current position and establish a new position in the next contract month.
What is the legal definition of the word reconcile?
Legal Definition of reconcile. transitive verb. 1 a : to restore to harmony reconciled the parties reconciled the marriage. b : to bring to resolution reconcile differences. 2 a : to check (a financial account) against another for accuracy. b : to account for. intransitive verb.