Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
O
Open Interest
Options & Derivatives
Open interest is the total number of outstanding (open) options contracts that have not been exercised, expired, or closed — it measures how
Option Premium
Options & Derivatives
Option premium is the total price you pay to buy an options contract, composed of two parts: intrinsic value (the amount the option is alrea
Out of the Money
Options & Derivatives
An option is out of the money (OTM) when exercising it immediately would not be profitable — a call is OTM when the stock price is below the