| Offer
(Asked): |
The
lowest price at which anyone is willing to sell a security. |
| Offset: |
See
Liquidate. |
| Omnibus
Account: |
An
account carried by one Futures Commission Merchant (FCM) with another
FCM in which the transactions of two or more persons are combined and
carried in the name of the originating FCM rather than of the individual
customers; the opposite of Fully Disclosed. |
| One-Eighties
(180s): |
A
two-day reversal pattern for strongly trending stocks described by Jeff
Cooper in his book Hit and Run
Trading. For buys, on day one, the stock must close in the bottom
25% of its daily range. On day two, the stock must close in the top
25% of its range. The pattern is reversed for sells. |
| Open
(or Opening
Price): |
The
first trade price of the day (or other time period). In futures markets,
the open is a representative price of the first minute of trading. In
stocks, the open is the first recorded trade price.
|
| Open
Outcry:
|
A method of public auction for making bids and offers in the trading
pits of futures exchanges. |
| Open
Trade Equity: |
The
unrealized gain or loss on open positions.
|
| Opening
Range: |
The
range of prices at which buy and sell transactions took place during
the opening of the market. |
| Opening
Transaction: |
The
implementing of a new position. |
| Open
Interest: |
The
cumulative total of all option contracts of a particular series sold
but not repurchased or exercised.
|
| Option
Buyer: |
See
Holder. |
| Option
Contract: |
A
contract which gives the buyer the right, but not the obligation, to
buy or sell a contract at a specific price within a specified period
of time. The seller of the option has the obligation to sell the contract
or buy it from the option buyer at the exercise price if the option
is exercised. See also Call Option and Put Option. |
| Option
Premium:
|
The
price of an option. |
| Option
Seller:
|
See
Grantor. |
| Oscillator: |
A
technical indicator that measures (usually) the velocity of shorter-term
price action to determine whether a market is overbought or oversold.
Well-known oscillators include the relative strength index (RSI) and
stochastics. See also Momentum and Rate of Change.
|
| Out
Trade: |
A
trade which cannot be cleared by a clearinghouse because the data submitted
by the two clearing members involved in the trade differs in some respect.
All out trades must be resolved before the the market opens on the next
day. |
| Out
of the Money (OTM): |
|
| Outside
Day: |
A
day with a high price higher than the previous day's high and a low
price lower than the previous day's low.
|
| Over-the-Counter
Market (OTC): |
A
market where products such as stocks, foreign currencies and other cash
items are bought and sold by telephone and other electronic means of
communication rather than on a designated exchange |
| Overbought: |
When
a market has presumably risen too far too fast and is due for at least
a short-term correction. See Oscillator.
|
| Oversold: |
When
a market has presumably fallen too far too fast and is due for at least
a short-term correction. See Oscillator. |