Glossary

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

O

Offer (ask)
The rate at which a dealer is willing to sell a currency. See Ask (offer) price

Open Order
Buy or sell order that remains in force until executed or cancelled by the customer.

Open Position
Any position (long or short) that is subject to market fluctuations and has not been closed out by a corresponding opposite transaction.

Options
An agreement that allows the holder to have the option to buy/sell a specific security at a certain price within a certain time. Two types of options – call and put. A call is the right to buy while a put is the right to sell. One can write or buy call and put options.

Order
A customer's instructions to buy or sell currencies.

Out-of-the-Money
A put option is out-of-the-money if the exercise/strike price is below the price of the underlying instrument. A call option is out-of-the money if the exercise/strike price is higher than the price of the underlying instrument.

Over the Counter (OTC)
Used to describe any transaction that is not conducted over an exchange.

Overnight Position
Trader's long or short position in a currency at the end of a trading day.