Offset

See: Defeasance.

You let slip that you think your spouse looks stupid in those new red boots. Immediately, you tell them how much you love their new haircut. One form of offset.

In finance, it involves creating a position directly opposed to a previous position you held. You buy 100 shares of Happy Flier, Inc. You get nervous about the company, so you decide to offset the position. This decision can manifest itself as simply selling the 100 shares...basically, undoing the original position. Or you can get tricky about it. You can use options or futures to set up a hedge. You develop an offsetting position that doesn't directly unravel the original position, but still protects you if the stock should suddenly drop.