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.

P

Pips Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called 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.