Education Glossary

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Definitions Starting with "o"

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Term Definition
Options Clearing Corporation

A clearing firm collectively owned by the major exchanges of the listed options.

Option Series

A collection of calls and puts that have the same unit of trading, expiration and strike prce on the same underlying security.

Option Class

A collection of options which have the same underlying security.

Outside Reversal

A daily bar chart pattern where the security's high is higher than the previous trading day.

Oscillator

A mathematical model for determining prices where a security is overbought or oversold. By identifying the extreme high and low prices, an oscillator can issue buy and sell signals when market activity nears either level.

Odd Lot

A securities order which is less than the conventional 100 shares.

Overbought\Oversold Indicator

A technical analysis decision support tool that identifies when prices for a financial asset have moved too far and/or too fast in either direction. It is calculated through the use of a moving average applied to the difference between advancing and declining issues.

Option

A trader's right, without obligation, to buy or sell a financial asset at a specific, pre-determined price during a specific time period.

OPG Order

A type of "time in force" order transaction instructing that the trade be executed as close to the open as possible and will only be accepted up to l 9:15am Eastern.

Open-End Fund

A type of mutual fund with no limit on the amount of shares issued. A trader purchases shares from the fund directly rather other shareholders.

Oversold

An occurrence where a market's price has fallen sharply, where the decline exceeds the level of it's true value.

Overbought

An occurrence where a market's prices are unjustifiably high due to extensive demand (buying).

On Balance Volume

Developed by Joseph Granville, this is a technical analysis indicator that tracks volume to predict changes in a financial instrument's price.

Order Flow

Refers to the trade orders sent by brokers to market makers. 

Over the Counter (OTC)

Securities that are traded in a medium (such as a Dealer Network) other than a formal exchange.

OEX

Symbol for Standard & Poor's 100 Cash Index.

Open Outcry

The audible communication between professionals on the trading floor of an exchange for bids and offers on a stock or commodity.

Offer

The highest price that a buyer will pay and the lowest price that a seller will sell, a security.

Opening Range

The price range for the highest bid and the lowest offer during the first few minutes of the Exchange's official open.

Opening Transaction

The process of initiating a trade to buy or sell a financial instrument.

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