Glossary: O

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OB15

Order Book Trading 15

 

OB25

Order Book Trading 25

 

OBC

Order Book Closed

 

OBT

Order Book Trading

 

OBT1

Order Book Trading 1

 

OBT2

Order Book Trading 2

 

OBT3

Order Book Trading 3

 

OBTD

Order Book Trading Dynamic Monitoring

 

OBTS

Order Book Trading Static Monitoring

 

ODR1

No Order Hitting Allowed

 

ODRH

Order hitting Allowed

 

ODRM

Order Removal

 

ODRS

Order Entry Suspended

 

OEICs

These are Open-Ended Investment Companies. OEICs are a ‘hybrid’ of unit trusts and investment trusts (see unit trusts and investment trusts).

 

OESP

Order Execution Suspended

 

OETY

Order Entry

 

Offer for sale

A method of bringing a company to the market. The public can apply for shares directly at a fixed price. Details of the sale must be printed in a national newspaper.

 

Offer for subscription

A method of bringing a company to the market. The public can apply for shares directly at a fixed price.

 

Offer price

The selling price for securities in the market.

 

Official List

A list of securities maintained by the UK Listing Authority. The Official List includes all securities that are approved for trading in the UK.

 

OPEN

Open

 

Open Period (OPEN)

The period that defines when the trading service is opened.

 

Open-ended fund

These funds have no limit to the number of units (or shares) they can issue. The price of the units (or shares) remains closely aligned to the NAV of the fund. Unit trusts and OEICs are open-ended funds.

 

Option

The right (but not the obligation) to buy or sell securities at a fixed price within a specified period.

 

Option premium

It is the price paid by a buyer to acquire the option right. The amount is typically expressed as pence per share.

 

Order

An offer to buy or sell a tradable instrument with a variety of conditions attached. See limit, at best, fill or kill, execute and eliminate and market orders.

 

Order book

An automatic execution facility operated by the Exchange. Order books facilitate the trading of order book securities.

 

Order book security

A security that is admitted to trading on the order book.

 

Order management

The period of a trading day when no automatic execution occurs. During order management, participants are only allowed to delete their orders.

 

Order matching

The process of automatically matching and executing buy and sell orders. Order matching is carried out by the system.

 

Order-driven

Trading services that are based on the order book.

 

Ordinary

The transaction was not covered by any of the other trade types listed.

 

Ordinary shares

The most common form of share. Holders may receive dividends in line with the company's profitability and recommendation of its directors.

 

Out-the-money

For a Call covered warrant, this is where the strike price is greater than the price of the underlying. For a Put covered warrant, this is where the strike price is less than the price of the underlying.

 

Over the counter (OTC) contracts

OTC contracts are off-exchange futures contracts that are individually negotiated. These are tailor-made and illiquid.

 

Overbought

A term describing a market (or a particular security), which is at an artificially high price level due to excessive buying. When a market (or security) is believed to be overbought, it is also believed to be due for a downward correction. On the other hand, when a market (or security) is believed to be oversold, it is believed that there has been excessive selling and the price is due for an upward correction.

 

Overnight Trade

The transaction was reported after 17:15 and before 7:15 the following day.