Forex Terms O

Open interest. The total outstanding position in a currency.

Open Market Investment Committee (OMIC). Committee established in 1923 in order to coordinate the Reserve Bank operations. It was composed of the Governors of the Federal Reserve Banks in New York, Boston, Philadelphia, Chicago, and Cleveland. Not currently active.

Open Market Policy Conference (OMPC). Committee established in 1930 to replace the OMIC. It consisted of 12 Federal Reserve Banks governors and the members of the Board. Not currently active.

Optimal options. Options that refer to the most favorable rate of the underlying currency that existed (from the holder's perspective) during the life of the option. This rate becomes the strike in the case of optimal strike options, or it becomes the underlying, determining the intrinsic value when compared to a predetermined fixed strike in the case of optimal rate options. Optimals can be based on the spot rate (spot style) or the forward rate (forward style).

Option currency spread. A long currency option and an offsetting short currency option, generally in the same currency.

Option writers. Option sellers.

Oscillators. Quantitative methods designed to provide signals regarding overbought and oversold conditions.

Out-of-the-money (OTM) call. A call whose present currency price is lower than the strike price.

Out-of-the-money (OTM) put. A put whose present currency price is higher than the strike price.

Overnight position limit. A position kept overnight by traders.

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