Trading glossary

OCO (One Cancels the Other) OCO Order Definition: An OCO (One Cancels the Other) order is a pair of conditional orders where the execution of one automatically cancels the other — combining a take-profit limit order with a st... Off-Chain Off-Chain Definition: Off-chain refers to any transaction, data or decision that is processed or stored outside a blockchain's public ledger. Off-chain systems avoid block space, so they settle in ... On-Balance Volume (OBV) On-Balance Volume (OBV) Definition: On-Balance Volume is a volume-based momentum indicator developed by Joseph Granville and published in his 1963 book "Granville's New Key to Stock Market Profits,... On-Chain On-Chain Definition: On-chain refers to any transaction, balance or piece of data recorded directly on a blockchain's public ledger. Every on-chain transaction is broadcast to the network, checked ... On-Chain Analysis On-Chain Analysis Definition: On-Chain Analysis is the practice of examining blockchain data — transactions, wallet activity, network flows, mining/staking patterns — to derive insights about crypt... OPEC OPEC Definition: OPEC, the Organization of the Petroleum Exporting Countries, is an intergovernmental group of oil-producing nations that coordinates how much crude its members pump in order to inf... Open Interest Open Interest Definition: Open interest is the total number of outstanding derivative contracts (futures or options) that have not been settled, closed, or exercised — measuring the aggregate expos... Open Position Open Position Definition: An open position is any trade that has been entered but not yet closed — a buy or sell that is currently active and exposed to market price movements. Every open position ... Operating Costs Operating Costs Definition: Operating costs (also called operating expenses or OPEX) are the ongoing expenses a business incurs to run its day-to-day operations — distinct from capital expenditure ... Opportunity Cost Opportunity Cost Definition: Opportunity cost is the value of the next-best alternative you give up when you choose one option over another. In investing, it equals the return your capital could ha... Optimal Capital Structure Optimal Capital Structure Definition: Optimal capital structure is the mix of debt and equity financing that minimises a company's weighted average cost of capital (WACC) and maximises its value to... Optimism (OP) Optimism Definition: Optimism is an Ethereum Layer 2 scaling solution using optimistic rollup technology similar to Arbitrum, processing transactions off-chain while settling on Ethereum mainnet. O... Optimistic Rollup Optimistic Rollup Definition: An Optimistic Rollup is a Layer 2 scaling solution that assumes off-chain transactions are valid by default and only verifies them through fraud proofs if challenged w... Options Chain Options Chain Definition: An options chain is a table that lists every available call and put option on a single underlying asset, organized by expiration date and strike price. For each contract i... Options Premium Options Premium Definition: The Options Premium is the price paid by the buyer to the seller for an options contract — calculated using pricing models that combine intrinsic value (immediate exerci... Oracle Oracle Definition: An Oracle in cryptocurrency is a service that provides smart contracts with external data — such as asset prices, weather information, or sports results — by connecting blockchai... Order Book Order Book Definition: An order book is a real-time list of all unfilled buy and sell orders for an asset on a trading venue, organized by price level and quantity. It shows the highest bid prices ... Order Flow Order Flow Definition: Order flow refers to the stream of buy and sell orders entering financial markets, providing real-time data about market participant intentions, supply and demand dynamics, a... Ordinals (Bitcoin) Ordinals (Bitcoin) Definition: Ordinals is a protocol that assigns a unique serial number to every satoshi, the smallest unit of bitcoin, in the order it was mined. Because each satoshi becomes ind... Orphan Block Orphan Block Definition: An orphan block is a valid block that is not part of the main blockchain because another block at the same height became part of the longer chain. It happens when two miner... Out of the Money (OTM) Out of the Money (OTM) Definition: An option is Out of the Money (OTM) when exercising would result in no payoff — for a call option, the underlying spot price is below the strike price; for a put ... Over-the-Counter (OTC) Over-the-Counter (OTC) Definition: Over-the-Counter trading is the direct exchange of financial instruments between two parties without going through a centralized exchange, typically conducted thr... Overbought Overbought Definition: Overbought describes an asset whose price has risen so far and so quickly that buying pressure looks stretched and a pause or pullback becomes more likely. Traders usually me... Overnight Position Overnight Position Definition: An overnight position is a trade that remains open after the market's daily close, which in forex is 17:00 New York time. Holding it past that point triggers a rollov... Overnight Rate Overnight Rate Definition: The Overnight Rate is the interest rate at which financial institutions lend to each other for one business day — the most fundamental short-term rate in the financial sy... Oversold Oversold Definition: Oversold is a market condition where an asset's price has fallen substantially over a short period to levels that suggest the downward move may be unsustainable, indicating pot... Overtrading Overtrading Definition: Overtrading is the destructive behavioral pattern of executing too many trades relative to genuine opportunities, often driven by emotional needs (entertainment, control, eg...