| OCO | |
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(One Cancals the Other) - this is a mechanism for placing two orders at the same time, one above and one below the market; if one is triggered then the other is cancelled. Note that with normal stop or limit orders, cancelling one doesn't automatically cancel the other. An OCO order included both stop and limit so when one is activated, the other automatically gets cancelled. For instance someone that had bought the Dow at 13,300 who wanted a stop loss at 13,200 and a limit to take profits at 13,600 could use an OCO order to ensure that as soon as either the limit or the stop is hit the other order would be automatically cancelled and not left hanging in the market. |
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| OCO MOC order | |
| Once Cancels Other - Market On Close order. Two orders placed against the same trade, e.g. a stop loss and a limit-sell on a long position. If one order is executed the other one will automatically be cancelled. Also known as a 'linked order'. | |
| Offer price | |
| The price at which a stock, index or commodity can be bought. In spread betting this is the price at which the client can make an 'up bet' (buy) with the spread betting company. Sometimes, referred to as the ask or asking price. | |
| Open positions | |
| trades that are currently running within a portfolio. | |
| Opening range | |
| Busy markets do not usually open at one price but are given an opening range (usually the first 2 minutes) where opening orders are filled in. | |
| Options | |
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The right to buy (call option) or sell (put option) a specified share at a specified price within a specified period. For this privilege you pay option money. There is no obligation for you to buy or sell the shares. You can let the option lapse if you wish. Example: You pay 20p per share for a three months' call option on Lucky Day shares at 265p, being the price at which they are standing in the market at present. During the next three months the shares rise to 305p so you take up your option to buy at 265p and make a net profit of around 20p a share. Alternatively, if the shares fall to 250p you do not take up your option, but lose 20p per share. A double option gives the right to buy or sell a share. A traded option is an option which itself can be traded throughout the course of its life. Another definition: The right, but not the obligation, to buy or sell an underlying financial instrument on or before a give date at the given price (called the strike price) A call is a right to buy while a put is a right to sell. The main attraction of options is that you limit your risks but not your rewards. The rule is if you see a good profit, take it quickly. They are however risky and not for the unexperienced. |
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| Order | |
| a pending trade that is only executed as a trade when the trader's conditions are met. For example, a spread better might place an order to buy an index future if its price falls to a certain level. | |
| Ordinary share | |
| A share on which the dividends vary in amount depending on the decision of the directors and based on the profitability of the company. | |
| Ordinary stop-loss | |
| a pre-determined level at which a bet is closed to limit the loss on that bet if the price moves adversely. A risk management tool in spread betting. Also called non-guaranteed stop-loss. See guaranteed stop-loss | |
| Our Quote | |
| orders and stops may be left basis the spread betting firm ("our quote"). | |
| Out of hours trading | |
| Trading a market outside of its regular trading hours. Also called 'After hours trading'. | |
| Out of the money | |
| an option where the strike price is above the current level for a call and below the current level for a put. | |
| Overbought | |
| this describes markets or stock that have risen rapidly so that a decline is likely in the near future. | |
| Overclosure | |
| see cut and reverse | |
| Oversold | |
| this describes markets or stock that have fallen to quickly and too steeply so that a rise is likely. | |
| Over trading | |
| opening more positions that the account can support. | |
| Over the counter market (OTC) | |
| A market outside the stock exchange in which small companies are able to raise money by issuing shares to the public. Very risky. |