1 Using the cash from the sale of one investment to purchase another. This may, or may not, involve a liability for capital gains tax, depending on the circumstances.
2 Closing an open position in a commodity market and opening a similar position in the same commodity but for a different delivery period. For example, a trader may switch a holding of sugar for October delivery FOB to an equal quantity of sugar for March delivery FOB for the next year.
3 A country's intervention in the international currency market to stop an outflow of its currency.
4 Exporting and importing through a third nation, where the currency paying for the goods can be easily exchanged into one acceptable to the seller.
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