Category: O

  • OTC

    ResourcesSee AlsoOver-the-Counter Futures Trading Consumer Protection Consumer Finance

  • Over the Counter Transaction

    Over the Counter (otc) TransactionConcept of Over the Counter (otc) Transaction in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A derivative (i.e. an instrument that transfers risk from one party to the other) transaction between two […]

  • OCO

    ResourcesSee AlsoOne Cancels the Other Order Futures Trading Consumer Protection Consumer Finance

  • Open Trade Equity

    Concept of Open Trade Equity in Futures TradingIn this context of financial law, the following is a definition of Open Trade Equity: The unrealized gain or loss on open futures positions.

  • Omnibus Account

    Concept of Omnibus Account in Futures TradingIn this context of financial law, the following is a definition of Omnibus Account: An account carried by one futures commission merchant, the carrying FCM, for another FCM, the originating FCM, in which the transactions of two or more persons, who […]

  • Option Writer

    Concept of Option Writer in Futures TradingIn this context of financial law, the following is a definition of Option Writer: The person who originates an option contract by promising to perform a certain obligation in return for the price or premium of the option. Also known as option grantor […]

  • Offer

    Concept of Offer in Futures TradingIn this context of financial law, the following is a definition of Offer: An indication of willingness to sell at a given price; opposite of bid, the price level of the offer may be referred to as the ask.

  • Opening

    Concept of Opening in Futures TradingIn this context of financial law, the following is a definition of Opening: The period at the beginning of the trading session officially designated by the exchange during which all transactions are considered made ‘at the opening’

  • Option

    Concept of Option in Futures TradingIn this context of financial law, the following is a definition of Option: A contract that gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or other instrument at a specific price within a specified period […]

  • Open Outcry

    Concept of Open Outcry in Futures TradingIn this context of financial law, the following is a definition of Open Outcry: A method of public auction, common to most U.S. commodity exchanges during the 20th century, where trading occurs on a trading floor and traders may bid and offer […]

  • One-to-Many

    Concept of One-to-Many in Futures TradingIn this context of financial law, the following is a definition of One-to-Many: Refers to a proprietary trading platform in which the platform operator posts bids and offers for commodities, derivatives, or other instruments and serves as a counterparty […]

  • Options

    Knock-out OptionConcept of Knock-out Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) which ceases to be in effect at the crossing of a […]

  • Overnight Trade

    Concept of Overnight Trade in Futures TradingIn this context of financial law, the following is a definition of Overnight Trade: A trade which is not liquidated during the same trading session during which it was established.

  • Option Buyer

    Concept of Option Buyer in Futures TradingIn this context of financial law, the following is a definition of Option Buyer: The person who buys calls, puts, or any combination of calls and puts.

  • Out-Of-The-Money

    Concept of Out-Of-The-Money in Futures TradingIn this context of financial law, the following is a definition of Out-Of-The-Money: A term used to describe an option that has no intrinsic value. For example, a call with a strike price of $400 on gold trading at $390 is out-of-the-money 10 dollars.