Encore Glossary |
Find here terms and their explanations commonly used in Energy Industry, Finance and Trading Boards
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| There are 19 entries in the glossary. |
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| Octane Number | A measure of the resistance of gasoline to pre-ignite or knock when burned in an internal combustion engine. |
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| Off-Peak | The load for the remaining hours that are not on-peak. |
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| Offer | A motion to sell a futures or options contract at a specified price. Opposite of bid. |
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| Offset | A transaction which liquidates or closes out an open contract position. In spread positions, one side offsets the other without liquidating the entire position. Risk is reduced when one side offsets the other. |
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| OFGEM | OFGEM is the Office of Gas and Electricity Markets, regulating the gas and electricity industries in Great Britain. Ofgem is governed by an authority and its powers are provided for under the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000. Everything that Ofgem does is designed to promote and protect the interests of gas and electricity customers. |
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| Omnibus Account | An account carried by one futures commission merchant with another in which the transactions of two or more persons are combined rather than designated separately and the identity of the individual accounts is not disclosed. |
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| On-Peak | Refers to hours of the business day when demand is at its peak. For example, the NYMEX Division California-Oregon border and Palo Verde electricity futures contracts define the on-peak period from the hour ending 0700 to the hour ending 2200 (6 A.M. to 10 P.M.), prevailing time. In the physical market, on-peak definitions vary by North America Electric Reliability Council region. |
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| One Cancels the Other | Two orders submitted simultaneously, either of which may be filled. If one order is filled, the other is considered to be canceled. |
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| Open Interest or Commitment | The number of open or outstanding contracts for which an individual or entity is obligated to the Exchange because that individual or entity has not yet made an offsetting sale or purchase, an actual contract delivery, or, in the case of options, exercised the option. |
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| Open Order | A resting order that is good until canceled. |
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| Open Outcry | A method of public auction for making verbal bids and offers for contracts in the trading pits or rings of commodity exchanges. |
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| Opening Price | The price for a given futures commodity that is generated by trading through open outcry during the opening range of trading on a commodity exchange. |
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| Option | A contract which gives the holder the right, but not the obligation, to purchase or to sell the underlying futures contract at a specified price within a specified period of time in exchange for a one-time premium payment. The contract also obligates the writer, who receives the premium, to meet these obligations.
See also:
American Option
European Option |
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| Original Margin | The initial deposit of funds, as good faith monies, when a position is initiated in order to guarantee fulfillment of its obligations. Also known as initial margin. |
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| Out-of-the-Money | An option which has no intrinsic value. For calls, an option whose exercise price is above the market price of the underlying future. For puts, an option whose exercise price is below the futures price. |
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| Outages | A planned outage is the shutdown of a generating unit, transmission line, or other facility for inspection and maintenance, in accordance with an advance schedule. A forced outage is the unplanned loss of service of a generating unit, transmission line, or other facility for purposes other than inspection and maintenance. |
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| Overbought | A technical opinion that the market price has risen too steeply and too fast in relation to underlying fundamental factors. |
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| Oversold | A technical opinion that the market price has declined too steeply and too fast in relation to underlying fundamental factors. |
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| Overwrite | The writing of more options than one expects to have exercised. Call options are overwritten because the writer considers the underlying overvalued. Put options are overwritten because the underlying is considered undervalued. |
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Glossary V2.0 |
