Glossary

All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

O

Off-exchange Traded Option

Non-standardised options contract, the details of which are mutually agreed by both parties and which is not traded on a stock exchange.

Offsetting

The cancellation of a position by entering a converse position.

Offsetting Transaction

A transaction where a short or long position is offset by the purchase or sale of the same number of contracts with the same maturity date.

Open Interest

The number of non-offset contracts following a stock exchange session.

Open Outcry System

A trading method on the stock exchange whereby the floor traders shout out their supplies and demand or use hand signals for this.

Open Outcry Trading

A trading method on the stock exchange whereby the floor traders shout out their supplies and demand or use hand signals for this.

Open Position

The position, which was entered through the purchase or sale of a contract and has not yet been offset by an opposed position.

Opening Trade

The purchase or sale of contracts through which a new position is entered.

Option

An agreement, which entitle a contracting partner the unilateral right to buy (call) or sell (put) a previously agreed amount of goods or security at an agreed price within a defined time.

Option Holder

An investor with a long position in option from which the right – but not the obligation – results to buy or sell the basic value at the exercise price.

Option traded on the stock exchange

Standardised option contract, which is approved for trade on a stock exchange.

Options Buyer

A market participant, who buys options contracts.

Options Class

All options of the same type with the same basic security.

Options Premium

The price, which the options buyer pays the options writer for the right to buy (call) or sell (put) the basic security.

Options Price

The price, which the options buyer pays the options writer for the right to buy (call) or sell (put) the basic security.

Options Price Model

A mathematical model to calculate the theoretical options price and the implicit volatility of an option. The Black&Scholes, Cox, Ross and Rubinstein options price models are among the most famous models.

Options Series

The total of all options of the same type (puts or calls) with the same basic security, basic price and expiry date.

Options Writer

A seller of an options contract, who enters the obligation to buy or sell the basic security if the options buyer decides to exercise his option.

Options Writer Option

A share option, which is hedged through the provision and pledging of a corresponding number of prescribed titles by the options writer.

Order valid until cancelled

Orders, which stay in the system until they are either used or cancelled.

OTC Market

Off-exchange market for securities, which takes place directly via telecommunications systems between the traders.

OTC Option

Non-standardised options contract, the details of which are mutually agreed by both parties and which is not traded on a stock exchange.

Out-of-the-money Option

An option, whose exercise price is clearly above or below the price of the basic security. A call is out of the money if the market value of the basic security is lower than the exercise price; a put is out of the money if the market value of the basic security is higher than the exercise price.

Out-of-the-money-Option

An option, whose exercise price is clearly above or below the price of the basic security. A call is out of the money if the market value of the basic security is lower than the exercise price; a put is out of the money if the market value of the basic security is higher than the exercise price.

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