| OB |
Order qualifier that instructs a broker to fill an order at a specific price or better. |
| OCO (order-cancels-other) |
A type of order that includes two orders, one of which cancels the other when filled. Also referred to as order-cancels-other or one-cancels-other. On CME Globex, this order type is only available via CME Globex Trader, which is scheduled to be decommissioned by the end of 2007. |
| Offer |
An offer to sell a specific quantity of a commodity at a stated price. (Opposite of a bid.) |
| Offer (or Ask, or sell) |
A willingness to sell at a given price; the opposite of bid. |
| Offset |
1 - To remove a position from an account by establishing a position opposite an existing position, making or taking delivery, or exercising an option (i.e., selling if one has bought, or buying if one has sold). 2 - To report reductions of a firm's inventory of open long purchase dates to CME Clearing. |
| Offsetting a hedge |
For a short hedger, to buy back futures and sell a commodity. For a long hedger, to sell back futures and buy a commodity. Also called lifting a hedge. |
| Offsetting a long option |
Offsetting a put by selling a put with the same strike price. Offsetting a call by selling a call with the same strike price. |
| OHMS |
Overhead Monitoring System; a CME-specific application for providing the visual display of quote information on the Upper Trading Floor. |
| OM |
Order Management Database. |
| Omnibus account |
An account held in the name of an entity or person that may be utilized for placing and clearing the trades of one or more undisclosed customers of the account holder. |
| On track |
On a railroad team tract or on a railroad siding which has facilities for delivery and reshipment. |
| Open interest |
The total number of futures contracts long or short in a delivery month or market that has been entered into and not yet liquidated by an offsetting transaction or fulfilled by delivery Also known as Open Contracts or Open Commitments.Each open transaction has a buyer and a seller, but for calculation of open interest, only one side of the contract is counted. |
| Open order |
An order that remains good until filled, canceled, or eliminated. |
| Open outcry |
The method of trading that the CFTC requires in the exchange trading pits whereby all trades are made with verbal bids and offers.In open outcry, only the highest Bid and lowest Offer prices can compete (that is, be shouted, accompanied by hand signals, by the floor brokers and floor traders) on the trading floor at any given moment. |
| Open position |
A long or short position that has not been liquidated. |
| 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." |
| Opening Only Order - Open Outcry |
An order that is to be executed in the initial RTH session opening range. Any such order or portion thereof not so executed shall be treated as cancelled and reported as "unable" to the customer within a reasonable time. |
| Opening price |
The range of prices at which the first bids and offers were made or first transactions were completed. |
| Opening range |
The range of prices at which the first bids and offers were made or first transactions were completed. |
| Option |
The right, but not the obligation, to sell or buy the underlying (in this case, a futures contract) at a specified price on or before a certain expiration date.There are two types of options: call options and put options. Each offers an opportunity to take advantage of futures price moves without actually having a futures position. |
| Option assignment |
The random selection of an option writer to take a futures position when an option is exercised. The option writer receives a short futures position (if the trader was short a call) or a long futures position (if the trader was short a put) at the option's strike price. |
| Option buyer |
One who purchases an option and pays a premium. |
| Option buyer (faker) |
The person who buys calls, puts or any combination of calls and puts and pays a premium. |
| Option calendar spread |
The simultaneous purchase and sale of options on futures contracts of the same strike price, but different expiration dates. |
| Option contract |
A contract that gives the bearer the right, but not the obligation, to be long or short a futures contract at a specified price within a specified time period. The specified price is called the strike price. The futures contract that the long may establish by exercising the option is referred to as the underlying futures contract. |
| Option seller |
One who sells an option and receives a premium. |
| Orange crush |
Nickname for FIX API 2.3 Express project. |
| ORAPI |
Order Routing Application Programming Interface. |
| Order |
A request by a trader to buy or sell a given futures instrument with specified conditions such as price, quantity, type of order. |
| Order To Pay |
A payment guarantee provided by a buyer's (or in some cases, the seller's) paying bank to CME's agent bank to guarantee payment on a currency delivery transaction. Orders to Pay are due by 1:00 p.m. on the day following the last day of trading in currencies. |
| Order type |
A property of an order, containing the conditions to which this order must adhere for execution (e.g., limit, market, stop). |
| Order-cancels-order (OCO) |
See "OCO." |
| Origin |
The type of account (house, customer, or customer non-segregated) for which a trade was executed. Also see segregation type. |
| OTC |
Over The Counter; a market in which custom-tailored contracts such as stocks and foreign currencies are bought and sold between counterparties and are not exchange traded. |
| Out trade Session |
A session that the exchange holds to ensure the resolution of outstanding out trades. |
| Out-of-the-money |
A term used to describe an option that has no intrinsic value. A call option with a strike price higher (or a put with a strike price lower) than the current market value of the underlying futures commodity. Since it depends on current prices, an option can vary from in the money to out of the money with market price movements during the life of the options contract. |
| Out-trade |
An unmatched trade. Generally results when there is some confusion or error on a trade - for example, when both traders think they were buying. |
| Overbought |
A technical opinion of a market which has risen too high in relation to underlying fundamental factors. |
| Oversold |
A technical opinion of a market which has fallen too low in relation to underlying fundamental factors. |