Financial Spread Betting Words: O-R
OCO MOC order - Once Cancels Other - Market On Close order. Please click here for a more detailed explanation on the different types of orders
OCO order - One Cancels Other order. Please click here for further details.
Offer or Ask - The price at which a spread better can buy the market to either go long or cover a short position. Click Here for more info
Open Position - A spread bet position long or short that has not been closed out
Opening range - Markets, especially busy ones never really open at one price, rather they are given an opening range (usually the first 2 minutes) where opening orders are filled in.
Option - Please click here for the LearnMoney guide to Traded Options
Overbought - A term used to describe a market or a stock that has appreciated so rapidly and has generated such excessively bullish sentiment that a near-term decline is highly likely
Oversold - A term used to describe a market or a stock that has declined so rapidly and has generated such excessively bearish sentiment that a near-term rally is highly likely
Pairs trade - Another name for a spread trade but done with 2 stocks, usually from the same sector. Buying a spread bet on Barclays and selling short HSBC is an example. The trade makes money if Barclays outperforms HSBC in either an up or down market. Click here for further details on pairs trading
Point - The minimum fluctuation of a spread bet trade. 0.1 is a point on the Gold market, or from 380.0 to 380.1. Also referred to as a tick or tic.
Pre-market - Spread betting companies will make a market on certain products even before they have opened in the cash market. For example the London Stock Exchange opens at 8am but spread betting companies will normally quote their prices from 7am. Not all markets are offered in pre-market, usually only the biggest and most popular ones.
Property futures - Some spread betting companies offer spread bets on the price of property, both residential and commercial.
- Note: Currently IG Index offers the best markets on property prices
Resistance - The price at which a prior advance was terminated or a future advance is likely to terminate, or where the market expects selling to materialise. For example, if the Nasdaq 100 is trading at 1,200 you may hear pundits report that 'resistance is expected at 1,225'.
Rollover - A detailed explanation on Rollovers is here
