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Glossary of Forex (Foreign Exchange) Terminology  O – Q




Offer – The rate at which a dealer is willing to sell a currency.


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


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.


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


Open position – A deal not yet reversed or settled with a physical payment.


Over the Counter (OTC) – Used to describe any transaction that is not conducted over an exchange.


Overnight – A trade that remains open until the next business day.




Pips – Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also c a lled Points.


Political Risk – Exposure to changes in governmental policy which will have an adverse effect on an investor’s position.


Point & Figure charts – The Point & Figure Chart disregards Time and focuses entirely on price activity.


Position – The netted total holdings of a given currency.


Premium – In the currency markets, describes the amount by which the forward or futures price exceed the spot price.


Price Transparency – Describes quotes to which every market participant has equal access.




Quote – An indicative market price, normally used for information purposes only.


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