O — Trading Terms Starting With O
Explore trading terms beginning with O, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with O
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Open Interest
Open interest is the total number of active futures or options contracts that have not been closed, exercised, or settled. It helps traders study participation and positioning.
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The opening price is the first traded price of an asset during a session. It may differ from the previous close because of overnight news, order imbalance, or changes in market expectations.
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The opening range is the high and low formed during the first part of a trading session. Traders often use it for breakout, reversal, and volatility strategies.
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An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price before or on expiry.
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Option premium is the price paid by the buyer and received by the seller of an option. It reflects intrinsic value, time value, volatility, interest rates, and expected movement.
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An order book is a list of active buy and sell orders at different prices. Traders use it to study market depth, liquidity, supply, demand, and possible slippage.
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Overbought describes a condition where an asset may have risen unusually far or quickly relative to recent behaviour. It does not guarantee an immediate decline.
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Oversold describes a condition where an asset may have fallen unusually far or quickly relative to recent behaviour. It may support a rebound thesis but does not guarantee one.
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Overtrading occurs when a trader takes too many positions, often because of boredom, revenge, FOMO, or pressure to reach a target. It can increase fees, errors, and emotional damage.
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