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Offer |
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The rate at which a Dealer is willing to sell the base currency. |
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Offset |
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The liquidation of a purchase of futures through the sale of an equal number of contracts of the same delivery month, or the covering of a short sale of futures contracts through the purchase of an equal number of contracts of the same delivery month. Either action transfers the obligation to make or take delivery of the actual commodity to another principal. |
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Omnibus Account |
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An account carried by one futures commission merchant with another in which the transactions of two or more persons are combined rather than designated separately and the identity of the individual accounts is not disclosed. |
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On Track (or Track Country Station) |
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A type of deferred delivery in which the price is set f.o.b. seller' location and the buyer agrees to pay freight costs to his destination. |
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One Cancels Other Order |
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Where the execution of one order automatically cancels a previous order. |
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Open |
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The period at the beginning of the trading session officially designated by the exchange during which all transactions are considered made "at the open." |
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Open Interest |
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The total number of futures contracts of a given commodity that have not yet been offset by opposite futures transactions nor fulfilled by delivery of the commodity; the total number of open transactions. Each open transaction has a buyer and a seller, but for calculation of open interest, only one side of the contract is counted. |
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Open Outcry |
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Method of public auction for making verbal offers in the trading pits or rings of commodity exchanges. |
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Opening Range |
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Range of closely related prices at which transactions took place at the opening of the market; buying and selling orders at the opening might be filled at any point within such a range. |
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Open Trade Equity |
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The unrealized gain or loss on open positions. |
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Opening Transaction |
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A purchase or sale that establishes a new position. |
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Option Contract |
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A contract which gives the buyer the right, but not obligation, to buy (call) or sell (put) a commodity or futures contract at a specified price on or before a specified date. The seller of the option has the obligation to sell the commodity or futures contract or buy it from the option buyer at the exercise price if the option is exercised. See also Call (Option) and Put (Option). |
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Open Position |
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Any deal which has not been settled by physical payment or reversed by an equal and opposite deal for the same value date. |
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Option Premium |
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The "price" a buyer pays for an option. Premiums are arrived at through open competition between buyers and sellers on the trading floor of the exchange. |
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Option Seller |
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See Grantor.
Orders, Types of - "Market Orders" are the most commonly used in futures markets. They instruct the broker to buy or sell a given number of futures contracts in a given delivery month at the best price obtainable; the price is not specified. A "Limit Order" to either buy or sell also gives the market, the quantity, and the delivery month, but states the specific price level at which the order is to be filled. "Stop Orders" to buy or sell are commonly used either to protect profits or to cut losses. The stop order to buy could be used to protect a short position against a rising market; the buy stop order is activated when the futures market trades at the stop price or is bid at or above the stop price. The sell stop order could be used to protect a long position against a falling market; the sell stop order is activated when the futures market trades at the stop price or is offered at the stop price or below. |
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Original Margin |
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Term applied to the initial deposit of margin money required of clearing member firms by clearinghouse rules, or to the initial margin deposit required of customers by exchange regulations. |
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Originate A Loan |
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Make or issue a loan |
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OTC |
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Over The Counter. |
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Out-Of-The-Money |
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An option having no intrinsic value. That is, a call whose strike price is above the current futures price or a put whose strike price is below the current futures price. |
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Overbought |
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A technical option that the market price has risen too steeply and too fast in relation to underlying fundamental factors. |
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Outright Forward |
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Similar to spot deals except that they are for value (delivered for cash settlement) more than two business days after the conclusion of the transaction. |
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Outright Rate |
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The forward rate of a foreign exchange deal based on spot price plus forward discount/premium. |
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Oversold |
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A technical option that the market has declined too steeply and too fast in relation to underlying fundamental factors. |
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Odd Lot |
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Order to buy or sell less than 100 shares of stock. |
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Offer |
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Same as the ASK price. See Ask. |
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Open Order |
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A buy or sell order that has not yet been executed or canceled. |
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Options |
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An agreement allowing an investor to buy or sell stock during a specific time for a specific price. Options are traded on several exchanges, including the Chicago Board of Options Exchange, the American Stock Exchange, the Philadelphia Stock Exchange, the Pacific Stock Exchange and the New York Stock Exchange. |
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Over The Counter (OTC) |
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Market where transactions are conducted over the telephone and computer network of dealers, rather than on the floor of an ex change.
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Overnight Trading |
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Refers to a purchase or sale between the hours of 9.00 pm and 8.00 am. on the following day |
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