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The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Out-of-the-money

An options contract that would not be profitable if it were exercised immediately.

Outright forward contract

A customised futures contract determined by two individual parties, as opposed to a fixed cutures contract determined by exchanges.

Outright option contract

A single-purchase options contract, as opposed to a multi-leg options contract.

Over-the-counter

Over-the-counter (OTC) is a decentralised marketplace for niche products not found on larger exchanges, using a broker-dealer network for trading.

Overbought

A condition in which a product has been bought to the point where its price is considered too high and may be due for a correction or decline.

Overexposure

A situation where a trader allocates a large amount of their capital to one product, thereby overexposing their portfolio to the risk of loss should the product perform badly.

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