OFFER

A communication indicating a willingness to sell at a given price. Opposite to Bid.

OFFSET

The procedure by which the long or short position of an individual is liquidated or closed out by an opposite transaction.

ON OPENING

A term used to specify execution of an order during the opening if possible.

OPEN INTEREST

See Open Position.

OPEN POSITION

The total number of products which have not been liquidated by an offsetting other financial products transaction or by actual physical delivery.

OPEN POSITION STATEMENT

A document sent to a client showing each product the client holds as an open position.

OPENING PRICE (OR RANGE)

Generally the price (or price range) recorded during the period when a futures contract commences trading.

OPTION

The right, but not the obligation, to take up bought or sold futures position at a predetermined price (the exercise price), for which the buyer pays a premium, limiting potential loss in the market to the total amount of the premium. (See Exchange Traded Option).

OPTIONS EXERCISED

Open options contracts at, or before, expiry which have been exercised into futures contracts. (SFE options are American style.)

OUT-OF-THE MONEY

An option that would not show a profit if exercised. A call option with a striking price higher (or a Put with striking price lower) than the current market value of the underlying commodity for delivery at the expiration time.