← All Glossary Odd Lot An order for fewer than 100 shares of a stock, historically incurring higher transaction costs but now commonly traded through modern brokerages. Open Interest The total number of outstanding derivative contracts — such as options or futures — that have not been settled, indicating market liquidity and activity. Operating Margin A profitability ratio measuring operating income divided by revenue, showing how much profit a company makes per dollar of sales after variable costs. Option A financial derivative granting the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a defined timeframe. Option Premium The price paid by a buyer to an option seller for the rights conveyed by the option contract, determined by intrinsic value and time value. Over-the-Counter (OTC) Trading securities directly between parties without exchange supervision, typically for smaller companies, bonds, or derivatives not meeting exchange listing requirements. Overbought A technical condition suggesting an asset's price has risen too far too fast and may be due for a pullback or reversal, often identified by RSI or stochastic indicators. Oversold A technical condition indicating an asset's price has declined excessively and may be due for a bounce or reversal, frequently signaled by indicators like RSI below 30.
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