Terms starting with “O”

25 definitions found.

Occupancy Rateasset_classes

Occupancy rate is the percentage of available rental space that is currently occupied in a property or portfolio.

OIS Ratemacro

The OIS rate is the fixed rate exchanged in an Overnight Indexed Swap. The swap’s floating leg is tied to an overnight policy rate such as the Secured Overnight Financing Rate (SOFR) in the United States or the Effective…

Okun's Lawmacro

Okun's Law is an empirical relationship linking changes in the unemployment rate to the growth rate of real GDP, suggesting that higher unemployment corresponds to slower output growth relative to potential.

Omega Ratiorisk_portfolio

The Omega ratio is a risk-adjusted performance metric that compares the probability-weighted gains above a chosen threshold to the probability-weighted losses below that threshold for a distribution of returns. It is thr…

On Balance Volume (OBV)technical

On Balance Volume (OBV) is a technical indicator that accumulates volume on up days and subtracts volume on down days to reflect buying and selling pressure behind price changes.

Open Interestderivatives

Open interest is the total number of outstanding futures and options contracts that have not been settled or closed.

Open Market Operationsmacro

Open market operations are a central bank tool in which the central bank transacts in government securities in the open market to influence the money supply and short-term interest rates.

Open Market Operations (OMO)macro

Open Market Operations (OMO) are acquisitions or disposals of government securities by a central bank in the open market to influence the level of bank reserves and the short-term interest rate.

Open-End Fundasset_classes

An open-end fund is a mutual fund that issues new shares and redeems existing shares at a price equal to the fund’s net asset value per share (NAV), with the number of shares outstanding changing in response to investor …

Opening Auctionmicrostructure

An Opening Auction is a price-discovery process at the start of a trading session in which orders accumulated during the pre-market period are aggregated and matched in a batch to determine the opening price.

Operating Cash Flowfundamental

Cash generated by a company’s core operating activities during a period; cash flow from operations (CFO) is reported on the cash flow statement and reflects cash effects of ongoing business operations, excluding financin…

Operating Expensesfundamental

Operating expenses are the costs a business incurs through its ongoing operations to generate revenue, excluding the cost of goods sold.

Operating Incomefundamental

Operating income, also called operating profit, represents the profit a company earns from its core business activities before financing costs and taxes. It is shown as a subtotal on the income statement and is closely r…

Operating Leasefundamental

A lease in which the lessee gains the right to use an asset for a defined period in exchange for lease payments, while ownership remains with the lessor.

Operating Leveragecorporate

Operating leverage is the degree to which a company's fixed costs dominate its cost structure, causing operating income to change more than sales in response to changes in demand. It reflects how sensitive earnings befor…

Operating Marginfundamental

Operating margin is a profitability metric that shows what portion of a company’s revenue remains after deducting operating expenses. It is calculated as operating income divided by net revenue and is expressed as a perc…

Optimism Biasbehavioral

A cognitive bias in which people overestimate the likelihood of favorable outcomes and underweight potential risks.

Option Premiumderivatives

Option premium is the price of an option contract. The premium is paid by the option holder to the option writer and is non-refundable whether the option is exercised.

Option-Adjusted Spreadfixed_income

Option-Adjusted Spread (OAS) is the yield spread over a benchmark interest-rate curve that, after accounting for embedded options (such as prepayment or call features) in a fixed-income security, would discount its optio…

Option-Adjusted Spread (OAS)fixed_income

Option-Adjusted Spread (OAS) is the yield spread, after accounting for embedded options, between a fixed-income security and a risk-free benchmark. It represents the additional yield associated with the security’s option…

Order Bookmicrostructure

A real-time list of outstanding buy and sell orders for a security, organized by price level and showing the quantity at each level.

Order Routingmicrostructure

Order routing is the process by which an order is transmitted from a broker's system to a market venue for execution, selected by routing logic in the broker's order-management system. The routing decision weighs price, …

Out Of The Moneyderivatives

Out of the Money (OTM) describes an option that has no intrinsic value today; for a call, the underlying price is at or below the strike, and for a put, the underlying price is at or above the strike.

Output Gapmacro

The output gap is the difference between an economy's actual output and its potential output, usually expressed as a percentage of potential output. It is commonly measured using real Gross Domestic Product (GDP) and est…

Overconfidence Biasbehavioral

Overconfidence bias is a cognitive bias in which individuals overestimate the accuracy of their judgments, knowledge, or forecasts. In finance and investing, it can contribute to excessive risk-taking and underestimating…