Financial Glossary for Traders & Investors
Explore the key trading and market terms and their meanings in this comprehensive glossary. Whether you're new to trading or looking to refine your knowledge, our financial glossary provides clear definitions of essential terminology used across global markets. From fundamental concepts to advanced trading strategies, discover the language of finance and enhance your understanding of the markets.
O
A pair of linked orders where if the one order is filled, the other is cancelled.
The synonym for Ask/Purchase price.
A technical indicator that uses trading volume to measure buying and selling pressure. It adds volume on days when price closes higher and subtracts volume on days when price closes lower, helping traders identify trends and potential reversals by tracking whether volume confirms price moves.
Count of outstanding derivative contracts in the market that have yet to be settled.
In CFD trading, an Open Position is an active trade that hasn’t been closed yet, where profits or losses change as the asset’s price moves.
A contract that gives the right, not the obligation, to buy an asset at a set strike price.
A technical indicator that fluctuates within a set range (e.g., 0–100) to show whether an asset is overbought, oversold, or neutral, helping traders spot potential trend reversals or entry/exit points.
An abbreviation for "Over the Counter", which refers to an off-exchange trading directly between parties.
Option with zero intrinsic value. Out of the money refers to options with no intrinsic value, only extrinsic value, such as time value and the underlying asset's volatility. This means that if a contract is out of the money when it expires, it expires worthless, and the buyer loses any premium paid.
An asset is considered overbought when it is technically priced too high, due to a pullback or reversal.
An asset is oversold when is technically priced too low and could experience a rebound.