The following definitions may help you better understand the capital markets. O Odd lot A number of shares that are less than a board lot, which is the regular trading unit decided upon by the particular stock exchange. An odd lot is also an amount that is less than the par value of one trading unit on the over-the-counter market. For example, if a board lot is 100 shares, an odd lot would be 99 or fewer shares. Offer See Ask Offset To liquidate or close out an open futures or option contract. On-stop (O/S) order A special-term order placed with the intention of trading at a later date when the price of the stock reaches the specified stop price. An on stop order becomes a limit order once a trade at the trigger price has occurred. Ontario Securities Commission The government agency that administers the Securities Act (Ontario) and the Commodity Futures Act (Ontario) and regulates securities and listed futures contract transactions in Ontario. Open interest The net open positions of a futures or option contract. Open order An order that remains in the system for more than a day. See good till cancelled or good till date. Option The right, but not the obligation, to buy or sell certain securities at a specified price within a specified time. A put option gives the holder the right to sell the security, and a call option gives the holder the right to buy the security. Option class All options of the same type, either calls or puts, that have the same underlying security. Option cycle A set pattern of months when a class of options expires. Option holder The buyer of an option contract who has the right to exercise the option during its lifetime. Option series An individual option contract for a given security. Option type A call or put contract. Option writer The seller of an option contract who may be required to deliver (call option) or to purchase (put option) the underlying interest covered by the option, before the contract expires. Over-the-counter (OTC) market The market maintained by securities dealers for issues not listed on a stock exchange. Almost all bonds and debentures, as well as some stocks, are traded over-the-counter in Canada. An OTC market is also known as an unlisted market. Top