Category Archives: N-T

Naked Short Selling

The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver the borrowed shares. Another form is to sell stock that you do not own and are not borrowing from someone. Here you owe the shorted shares to the buyer but “fail to deliver.”

National Debt

The total amount that the federal government has borrowed including internal debt (borrowed from national creditors) and external debt (borrowed from foreign creditors). Click on this post for more information!

Offer Price

The offer price, or the Bid price is what an investor is willing to pay for an investment. It is only an offer and will not be accepted if the seller is not willing to let go at the offer price.

OHLC (Bar) Chart

“OHLC” stands for “Open, High, Low, Close”, and this is a chart designed to help illustrate the movement of a stock’s price over time (typically a trading day, hour, or minute). Click on this post for a visual and more details!

Oligopoly

An oligopoly is characterized by a small number of sellers who dominate an entire market. All of the firms who partake in an oligopoly are considered to be very large in terms of profit, size and client base. Click on this post for further details, and an example of an oligopoly!

Open Interest

This article explains Open Interest, which is the total number of options or futures contracts that are “open”, meaning currently owned by an investor and not yet expired.

Opportunity Cost

“Opportunity Cost” is what needs to be given up to get something. This is different from an item’s price. This article explains the different opportunity costs for producers and consumers.

Option Spreads

Options SpreadsĀ are option trading strategies which make use of combinations of buying and selling call and put options of the same or varying strike prices and expiration dates to achieve specific objectives (hedging, arbitrage, etc.). This article contains two crucial option spreads trading strategies, and is a must read!

Options Contract

An Options Contract is a contract which specifies how much of the underlying asset can be bought or sold at a specific price. An option contract to buy the underlying is a call option, and to sell the underlying is a put option. Most stock options contracts represent 100 underlying shares.