ODD LOT: This happens when a stock is bought in less than the typical round lot increment of 100 shares. 

OEX: is the symbol for the S&P's 100 cash Index. 

OFFER: This is the price of an equity at which a seller is offering to sell. Another name for the ask price.

ONE CANCELS OTHER (OCO): This is an order type in which two orders will be submitted at the same time, by one customer. Once the two orders are placed, if one order is filled, the other order is instantly canceled. 

OPEN (O), THE: This is the start of trading on a securities exchange.

OPEN (PRICE) ORDER: An order placed to buy or sell securities that have not been executed or canceled.

OPEN EQUITY: In stock and options, the open equity is the total value of all open positions, minus the margin requirements of those positions.

OPEN INTEREST: The total number of overdue options and/or futures contracts that are not closed or delivered on a given day. Also, The number of buy market orders before the stock market opens. 

OPEN OUTCRY: The use of bids and asks, for securities on the floor of an exchange.

OPEN POSITION: As defined in securities, a long or short position. 

OPENING PRICE/RANGE: The ranges of the initial bid and ask prices made on a specific equity, or the prices of the first transactions for that equity.

OPENING ROTATION: This is the procedure by which options are priced after the opening of the underlying stock.

OPENING TRADE/TRANSACTION: This is an initial transaction that adds long stock or options to a position, or an initial sale transaction that adds short stock or options to a position. Also; Rights for a buyer are created as is the obligation of the seller. 

OPTION CHAIN: A technique of quoting options prices through a list of all of the options on a particular stock. 


OPTION PRICING MODEL: Any model based technique for calculating the accurate value of an option. Models typically use six factors in their calculations:  the volatility of the stock, the strike price, dividends, and the amount of time until the option expires interest rates, and the primary stock price. 

OPTION: A financial contract sold by one party, the option writer, to another party, the option holder. The contract gives the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price (the strike price) during either a specific period of time or date, also known as the exercise date.

OPTIONS CLEARING CORPORATION, THE (OCC): A clearing firm that acts as both the issuer and underwriter for an option and futures contract. The corporation also oversees the listing of options and futures to guarantee performance on both option and futures contracts.

ORDER BOOK OFFICIAL (OBO): This is an employee of a specific exchange that will supervise investors' orders on the floor of that exchange. 

ORDER FLOW: The collective, small securities orders, to either buy or sell a specific security that a broker will send to dealers. 

ORDER ROUTING SYSTEM (ORS): The system used by the Chicago Board Options Exchange (CBOE) to collect, store, route and execute orders for investors of the exchange. 

ORDER: This is a request from an investor to a broker to buy or sell a particular amount of a specific security or commodity at a certain price or at the market price. 

OTC (Over-The-Counter) OPTION: Exotic options traded on the over-the-counter (OTC) market, where investors can choose the unique terms of the options traded.

OUT-OF-THE-MONEY (OTM): When trading options; an OTM for a call, is when an option's strike price is higher than the market price of the underlying security. For a put, it is when the strike price is below the market price of the underlying asset. Out-of-the-money options have zero essential value. 

OUT-TRADE(S): A situation in where there is some error on a trade. 

OVER-THE-COUNTER (OTC) MARKET: A securities market where there is no physical exchange floor. The OTC market is made up of dealers who may or may not be members of a securities exchange.

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