Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.

The industry’s
most important terms explained.

Discover a wealth of financial terms and definitions that every trader should know.

Forex Glossary

O

Order

An instruction to execute a trade at a specified rate.

Overnight Position

A trade that remains open until the next business day.

Over the Counter (OTC)

Used to describe any transaction that is not conducted over an exchange.

Open position

An active trade with corresponding unrealised P&L, which has not been offset by an equal and opposite deal.

Open order

An order that will be executed when a market moves to its designated price. Normally associated with Good ’til Cancelled Orders.

One Cancels the Other Order (OCO)

A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.

Offsetting transaction

A trade with which serves to cancel or offset some or all of the market risk of an open position.

Offer (ask)

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