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Negative Divergence
When two or more indicators, indexes, or averages, fail to show confirming trends.
Net Change
The amount and direction of a security's price change since its previous close.
Odd Lot
An amount of stock consisting of less than 100 shares.
Offer
See 'Ask'
On Balance Volume (OBV)
Introduced by Joe Granville in 1963, On Balance Volume (OBV) is a momentum
indicator that relates volume to price change. On Balance Volume shows if volume
is flowing into or out of a security. When the security closes higher than the
previous close, all of the day's volume is considered "up" volume. When the
security closes lower than the previous close, all of the day's volume is considered
"down" volume.
Open
The price at which a security opened for trading on a given day.
Option
A contract that gives the buyer the right, but not the obligation, to buy or sell a
particular asset (the underlying security) at a fixed price for a specific period of
time. This contract also obligates the seller to meet the delivery terms if the buyer
exercises the contract right. The owner of call option has the right to purchase the
underlying asset at a specific price, and this right lasts until a specific date. The
owner of a put option has the right to sell the underlying asset at a specific price,
and this right lasts until a specific date. Clients may also take specialized positions,
such as spreads, straddles, and/or combinations, depending on the level of trading
for which they are approved.
Out of the Money
A call is out of the money when an option’s strike price is higher than the market
price of the underlying security. A put is out of the money when the strike price is
below the market price of the underlying security.
Outed
A term used by traders to confirm that an order was canceled by the Market Maker
or Exchange.
Over-the-Counter (OTC)
Over-the-Counter refers to stocks not traded on registered exchanges. Many OTC
stocks are traded through NASDAQ, OTCBB (Bulletin Board), or the Pink Sheets.
Overbought
Overbought is a technical condition described as such by various technical
indicators that occurs when prices are considered too high and may be susceptible
to a decline. Overbought conditions can be classified by analyzing the chart pattern
or with indicators such as the Stochastic Oscillator and Relative Strength Index
(RSI). A security is sometimes considered overbought when the Stochastic
Oscillator exceeds 80 and when the Relative Strength Index (RSI) exceeds 70. It is
important to keep in mind that overbought is not necessarily the same as being
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