Glossary

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OPEC (Organization of Petroleum Exporting Countries)
An organization consisting of the world's major oil-exporting countries, OPEC was founded in 1960 to coordinate the petroleum policies of its members and to provide member states with technical and economic aid. OPEC is a cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market. OPEC includes the following countries: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

Off-shore
A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or foreign business.

Offset
Elimination of a long or short position by making an opposite transaction.

Omnibus account
An account between two futures merchants (brokers) in which the transactions of two or more persons are combined and carried in the name of the originating broker, rather than designated separately.

Option
A privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date.

Order
Instruction to a Dealer to open or close the position when the price has reached the order level.

Out-of-the-money option
A call option is "out of the money" if the strike price is greater than the market price of the underlying security.

Overnight
A position at the end of the trading day in a foreign market that will be open while the local market is closed. The trade will be executed sometime that evening or early morning.