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Futures Terms |
| Browse our glossary of terms by using the Alphabet below. You may also search the glossary by using the search box in the right column. | |
| O | |
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| Term | Definition |
|---|---|
| OCC Option Clearing Corporation | The firm that processes NQLX Single Stock Futures transactions for settlement and delivery. |
| Offset | Extinguish an obligation. The obligation created by entering into a Single Stock Future can be offset by entering in the opposite transaction. For example, the holder of a long position in a Single Stock Future can offset his obligation by selling a contract on the same underlying asset and the same delivery month. |
| Open Interest | Open interest refers to the number of outstanding contracts that remain open. For example, if a position was taken in a contract, and at the expiry of that contract, instead of closing out the position, the trader decided to roll the contract over (ie open a similar position in the next expiry month), their open interest in that contract would continue. If however the trader decided to close out their position, the open interest for that contract would decrease. |
| Option | The buyer of an option has the right, but not the obligation, to undertake an action on an underlying asset. The right to buy is a "call" option, while the right to sell is a "put" option. A right exercisable only on the expiration date is "European"-style, while a right exercisable on or before the expiration date is "American"-style. The pre-determined price at which exercise occurs is the strike price. |