Terminology Guide - "O"

Open Interest: The number of options or futures contracts that are still open at the end of a trading day.

Oscillator: An indicator that determines when a market is in an overbought or oversold condition.

Over The Counter (OTC): Securities that are traded through a telephone and/or computer network. OTC markets do not have a geographical location and can be traded from anywhere.

Overbought: When a stock is overextended to the upside and the price is likely to decline. An RSI value over 70 indicates that a stock is overbought.

Oversold: When a stock is overextended to the downside and the price is likely to rally. An RSI value under 30 indicates that a stock is oversold.

 

P