Investment Terms: O
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This article is from the Investment Terms.
Investment Terms: O
- Offer:
An expression indicating one's desire to sell a commodity at a given price; opposite of bid. - Offset:
Taking a second futures or options position opposite to the initial or opening position. See Liquidate. - OPEC:
Organization of Petroleum Exporting Countries, emerged as the major petroleum pricing power in1973, when the ownership of oil production in the Middle East transferred from the operating companies to the governments of the producing countries or to their national oil. Members are: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. - Opening Range:
A range of prices at which buy and sell transactions took place during the opening of the market. - Open Interest:
The total number of futures or options contracts of a given commodity that have not yet been offset by an opposite futures or option transaction nor fulfilled by delivery of the commodity or option exercise. Each open transaction has a buyer and a seller, but for calculation of open interest, only one side of the contract is counted. - Open Market Operation:
The buying and selling of government securities Treasury bills, notes, and bonds by the Federal Reserve. - Open Outcry:
Method of public auction for making verbal bids and offers in the trading pits or rings of futures exchanges. - Option:
A contract that conveys the right, but not the obligation, to buy or sell a particular item at a certain price for a limited time. Only the seller of the option is obligated to perform. - Option Buyer:
The purchaser of either a call or put option. Option buyers receive the right, but not the obligation, to assume a futures position. Also referred to as the holder. - Option Premium:
The price of an option the sum of money that the option buyer pays and the option seller receives for the rights granted by the option. - Option Seller:
The person who sells an option in return for a premium and is obligated to perform when the holder exercises his right under the option contract. Also referred to as the writer. - Option Spread:
The simultaneous purchase and sale of one or more options contracts, futures, and/or cash positions. - Option Writer:
See Option Seller. - Original Margin:
The amount a futures market participant must deposit into his margin account at the time he places an order to buy or sell a futures contract. Also referred to as initial margin. - Out-of-the-Money Option:
An option with no intrinsic value, i.e., a call whose strike price is above the current futures price or a put whose strike price is below the current futures price. - Over-the-Counter (OTC) Market:
A market where products such as stocks, foreign currencies, and other cash items are bought and sold by telephone and other means of communication.
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