| Offer |
An auction term meaning “a motion to sell” at a specified price. |
| Offset |
A transaction which closes out an open futures or options position. One offsets a short by buying a contract (cover); or offsets a long by selling a contract (liquidate). |
| Omnibus Accounts |
An account carried by an FCM (a non clearing member) with another FCM (a clearing member of the exchange) in which the transactions of two or more customers are combined and carried in the name of the originating FCM. |
| Open Interest |
The total number contracts outstanding at any one time. See commitment. |
| Open Order |
A good till cancelled (GTC) order. |
| Open Outcry |
The method of trading used in futures market. A public auction for making verbal bids and offers in rings or pits on exchange floors. |
| Opening Price |
The price or range of prices established by open outcry during the opening call. |
| Option |
The right, (but not an obligation), to buy or sell anything at a set price (strike price) for a period of time in exchange for a fee called a premium. Options are granted (sold or written) on futures contracts, stocks and real estate, as well as anything else that can be bought or sold. |
| Original Margin |
See margin. |
| Out of the Money |
An option term used to describe an option that has no intrinsic value; e.g. a $10.00 call is $1.00 out of the money if the underlying instrument is trading at $9.00. |
| Out Trade |
A break or an unmatchable trade usually cause by an error in entering trade or clearing information. Also called a DK. Sometimes caused by a mistake between brokers, e.g., buying May when the opposite broker is selling March. |
