[Soultrader]

Alphabetical Order O - R

On S&P 500 Term
Same as bid, E.g. 10 on 1: someone wants to pay 10 for 1 S&P.
On the Bid/Offer
XYZ House is ON THE BID"…"ABC Bank joins the bid." They have orders to buy on the Bid - usually limit orders. The inverse is true for the Offer.
Open Interest General Floor Term
Total number of futures or options-on-futures contracts that have not yet been offset or fulfilled by delivery. An indicator of the depth or liquidity of a market (the ability to buy or sell at or near a given price) and of the use of a market for risk- and/or asset-management.
Open Order General Floor Term
An order to a broker that is good until it is canceled or executed.
Opening Price (Or Range) General Floor Term
The range of prices at which the first bids and offers were made or first transactions were completed.
Opening, The General Floor Term
The period at the beginning of the trading session during which all transactions are considered made or first transactions were completed.
Option General Floor Term
A contract giving the holder the right, but not the obligation, hence, "option," to buy (call option) or sell (put option) a futures contract in a given commodity at a specified price at any time between now and the expiration of the option contract.
Out-Trades General Floor Term
A situation that results when there is some confusion or error on a trade. A difference in pricing, with both traders thinking they were buying, for example, is a reason why an out-trade may occur.
Paper S&P 500 Term
Pre-existing written orders held by brokers usually from retails or institutions, not locals.
Performance Bond General Floor Term
(Previously referred to as Margin) Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member, or by a clearing member, with the Clearing House. The performance bond helps to ensure the financial integrity of brokers, clearing members and the Exchange as a whole.
Performance Bond Call General Floor Term
(previously referred to as Margin Call) A demand for additional funds because of adverse price movement.
Position General Floor Term
An interest in the market, either long or short, in the form of open contracts. (see Open Interest)
Premium General Floor Term
1.) The excess of one futures contract price over that of another, or over the cash market price. 2.) The amount agreed upon between the purchaser and seller for the purchase or sale of a futures option -- purchasers pay the premium and sellers (writers) receive the premium.
Premium S&P 500 Term
The futures price above the cash price.
Price Trades
Price trades and is printed.
Print
A price that is actually traded and sent out (printed) to real-time data feeds.
Program Traders S&P 500 Term
(Ranked in order of activity) Morgan Stanley, UBS Warburg, RBC Dominion, CS First Boston, Bear Sterns, Salomon Brothers, Lehman Bros, Merrill Lynch, and Susquehanna.
Pulls or Pulled
When an offer or bid quoted gets cancelled/withdrawn. Example: 20 offered at 500, 450 bid in ten, 500 offer PULLED.
Put General Floor Term
An option to sell a commodity, security, or futures contract at a specified price at any time between now and the expiration of the option contract.
Rally General Floor Term
An upward movement of prices following a decline; the opposite of a reaction.
Range General Floor Term
The high and low prices or high and low bids and offers, recorded during a specified time.
Reaction General Floor Term
A decline in prices following an advance. The opposite of rally.
Registered Representative General Floor Term
A person employed by, and soliciting business for, a commission house or Futures Commission Merchant.
Retail
Retail brokerage business usually from individual traders calling their brokers.
Roll-over S&P 500 Term
As the front month expires and the following month becomes the front month.
Round-Turn General Floor Term
Procedure by which a long or short position is offset by an opposite transaction or by accepting or making delivery of the actual financial instrument or physical commodity.