Terminology forex : O

Offer

The price a dealer is willing to sell a currency.

 

 

 

 

 

 

Offsetting transaction

A transaction that cancels or eliminates all market risk in an open position.

 

 

 

 

 

 

 

Oman Rials

The currency of Oman. Currency code (OMR)

 

 

 

 

 

 

One cancels the other order

An order in which one order will cancel when another order is executed. Also known as OCO.

 

 

 

 

 

 

Open position

An active trade that has yet to be closed.

 

 

 

 

 

 

 

Order

A request for a trade to be executed.

 

 

 

 

 

 

 

OsMA

OsMA is the abbreviation used to express a function of Oscillator within technical analysis, OsMA standing for Oscillator – Moving Average (or sometimes Oscillator – Moving Average of Oscillator.)
Oscillator itself is an indicator that allows the demonstration of the relationship between any two given set periods of the Moving Average, which may then be either expressed as a percentage or as a number. There are two forms of oscillator, the price oscillator and the volume oscillator.
Oscillator itself is a useful trend indicator and allows the discovery of short-term conditions that may have been either oversold or overbought. When the value of the oscillator begins to approach the upper extreme levels the asset can then be deemed to have been overbought, shows an example of oversell when it approaches the lower extremes.
OsMA, on the other hand allows a clear demonstration of the variance of the oscillator from its moving average, in which case the main line of the MACD then serves as the oscillator, with the signal line of the MACD becoming the moving average.

 

 

 

 

 

 

Overnight position

A position that stays open until the next trading day.

 

 

 

 

 

 

Over the Counter

A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor.
Stocks of small companies, bonds, and other securities that aren’t traded over a formal exchange can be traded over the counter. In over-the-counter markets, dealers, also known as market makers, buy and sell securities from their own inventories. As such, if an investor wanted to buy or sell a certain security, he would contact a dealer of the particular security and ask for appropriate bid or ask price.
In the U.S., the OTC Bulletin Board (OTCBB) is a popular electronic inter-dealer quotation system through which over-the-counter securities are traded. The OTCBB, and other inter-dealer quotation networks such as Pink Quote, is regulated by the Financial Industry Regulatory Authority (FINRA).
Forex trading also takes place in over-the-counter markets as transactions are executed outside of a centralized exchange. This is what allows forex traders to trade 24 hours a day as trading isn’t limited by the market hours of a formal exchange such as the New York Stock Exchange. Instead, traders are able to buy and sell currencies through a network directly connecting various banks, dealers, and brokers.

 

 

 

 

 

Outright Forward

Foreign exchange transaction involving either the purchase or the sale of a currency for settlement at a future date.

 

 

 

 

 

 

Organization of the Petroleum Exporting Countries

The Organization of the Petroleum Exporting Countries, also known as “OPEC,” is an intergovernmental organization of 12 oil-exporting countries that coordinates the petroleum policies of its members. Its mission is also to ensure the stabilization of the oil markets to secure a regular and efficient supply of petroleum to consumers, income to producers, and a fair return on capital to industry investors.

 

 

 

 

 

 

Operation Twist

Operation Twist pertains to the Federal Reserve’s action to sell short-term US Treasury bonds and invest the proceeds into long-term US Treasury bonds.
In September 2011, the Federal Reserve implemented Operation Twist in order to lower long-term interest rates. Lower interest rates would hopefully increase household and business borrowing and spending, therefore boosting the economy.

 

 

 

 

 

 

 

Open order

An order that will be executed when a specified market price is reached.

 

 

 

 

 

 

 

 

One Cancels Other Order

The execution of one order automatically cancels a previous order. Also referred to as OCO or “one cancels the other”.

 

 

 

 

 

Oil

Oil is a substance that is used for power and energy in order to run all the machines that we humans use. It is normally referred to as petroleum. It is important for consumers because they depend on oil for everyday activities. Naturally, companies also need oil to run their machinery and keep up production.However, like other commodities on the market, not all regions can produce the same amount of oil. Thus, the oil market is created in order to match supply and demand of oil. Oil is traded through the purchasing and selling of oil futures. Futures are contracts that carry an obligation between two parties to make a transaction in the future at a predetermined price and date. Such contracts are standardized in terms of quality, quantity and transaction date and are traded on regulated futures exchanges. The main exchange markets for crude oil are the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). These exchanges are regulated by the Financial Services Authority (FSA) in the UK and the Commodity Futures Trading Commission (CFTC) in the US. The different types of oil that are produced also affect the way it is traded and where it is traded. As it is, when people talk about oil, they normally refer to crude oil, which is the type most traded the most on international markets.The biggest consumers of crude oil are (in millions of barrels per day):United States = 20.5 China = 6.5 Japan = 5.4 Germany = 2.6 Russia = 2.6 Canada = 2.3 – This shouldn’t come as a surprise – these nations all rely heavily on manufacturing and industrial production, and energy consumption. At the same time, the US, Canada, Russia and China are also some of the leading producers of crude oil. Of course, the biggest producer in the world is Saudi Arabia, with neighboring countries like Kuwait, Iran, UAE, and Iraq also being major producers of oil.There are several factors that influence the trading of oil. For one, global demand plays a major role in determining the price of oil. If demand is high and business is booming, production may pick up, which could lead to an increase in the demand of oil. The weather can also play a crucial role as it can affect the dynamics of supply and demand. Natural disasters could hinder the production of oil, which in turn could cause oil prices to rise. Of course, politics always plays a major role in crude oil – the wars in the Middle East are an example of this. Oil trading can also be influenced by how investors view the state of the dollar. Take note, oil is sometimes used as a hedge against inflation. Also, always remember that the crude oil is bought and sold in US dollars, the movement of the USD can affect the pricing of oil.

 

 

 

 

 

 

 

 

Offered market

Situation in which offers are greater than bids.

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