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Odd lot |
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Any order for a quantity less than one board lot. |
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Of record |
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On the company’s books or record. |
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Offer |
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See Ask. |
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Ontario Securities Commission (OSC) |
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The OSC is the government agency that administers the Securities Act (Ontario)
and the Commodity Futures Act (Ontario) and regulates securities and listed
futures contract transactions. |
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One-cancels-other order (OCO) |
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A type of option order which treats two or more option orders as a package,
whereby the execution of any one of the orders causes all the orders to
be reduced by the same amount. For example, the investor would enter an
OCO order if he/she wished to buy 10 May 60 calls or 10 June 60 calls or
any combination of the two which when summed equaled 10 contracts. An OCO
order may be either a day order or a Good-'til-cancelled (GTC) order.
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On stop (O/S) order |
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A special term order entered with the intention of trading at a later date
when the price of the stock reaches the specified stop price. An on stop
order becomes a limit order once a trade at the trigger price has occurred.
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Open interest |
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The total number of futures or options contracts of a given derivative instrument
that have not yet been offset by an opposite futures or option transaction
nor fulfilled by delivery of the security or option exercise. Each open
transaction has a buyer and a seller, but for calculation of open interest,
only one side of the contract is counted. |
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Open order |
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An order which remains in the order book longer than a single day. See Good
‘til Cancelled (GTC) or Good ‘til Date (GTD). |
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Open outcry |
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The trading method by which competing market-makers and traders representing
public orders make bids and offers on a trading floor. |
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Opening transaction |
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An addition to, or creation of, a trading position. An opening purchase
transaction adds long options to an investor's total position, and an opening
sale transaction adds short options. An opening option transaction increases
that option's open interest. |
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Open-end fund |
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An open-end mutual fund continuously issues and redeems units, so the number
of units outstanding varies from day to day. Most mutual funds are open-ended.
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Option |
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An option is a transferable contract giving the holder the right, but not
the obligation, to buy (call option) or sell (put option) a fixed amount
of a given asset, at a price stipulated in advance, any time until the contract's
expiration date. At Bourse de Montréal Inc., one can trade options on stocks,
bonds, futures and indexes. |
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Option class |
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See Class of options. |
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Option eligible |
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A stock that meets all the criteria required by the clearing corporation
for the listing of options on that stock by an exchange. |
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Option eligible securities |
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Assets which meet the eligibility criteria as underlying assets for Canadian
exchange-traded put or call options. This criteria is set by the Canadian
Derivatives Clearing Corporation (CDCC). |
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Option holder |
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The buyer of an option contract who has the right to exercise the option
during its lifetime. |
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Option series |
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See Series. |
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Optionable stock |
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A stock on which listed options are or can be traded. |
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Option period |
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The time from when an option contract is created by a writer to the expiration
date. Sometimes referred to as an option's "lifetime."
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Option pricing curve |
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A graphic representation of the estimated theoretical value of an option
at one point in time, for various prices of the underlying security.
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Option spread strategy |
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A strategy whereby one buys and sells options of the same type within the
same class. |
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Option writer |
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See Writer. |
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OSC |
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See Ontario Securities Commission. |
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OTC market |
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See Over-the-counter market |
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Out-of-the-money option |
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When the exercise price of a call (or put) option is higher (or lower) than
the security price. |
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Over-the-counter (OTC) derivative |
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An over-the-counter derivative is one which is traded in the over-the-counter
market. OTC derivatives are not listed on a derivatives exchange and do
not have standardized terms. These are to be distinguished from exchange-listed
and traded derivatives which are standardized. |
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Over-the-counter contract |
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A customized contract transacted directly with a financial institution. |
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Over-the-counter (OTC) market |
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The over-the-counter (OTC) market or unlisted market is the market maintained
by securities dealers for issues not listed on an organized exchange. |
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Overwrite |
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An option strategy involving the writing of call options (wholly or partially)
against existing long security positions. This is different from the buy-write
strategy which involves the simultaneous purchase of security and writing
of a call. (See also Ratio write.) |
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Owner |
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Any person who has made an opening purchase transaction, call or put, and
has that position in a brokerage account. |
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