Odd Lot
A non standard amount for a transaction.

Offer
The rate at which a dealer is willing to sell the base currency.

Offset
The closing-out or liquidation of a futures position.

Off-shore
The operations of a financial institution which although physically located in a country, has little connection with that country's financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit.

One Cancels Other (OCO) Order
Where the execution of one order automatically cancels a previous order.

Open Position
Any deal which has not been settled by physical payment or reversed by an equal and opposite deal for the same value date.

Option
The right, but not the obligation, to buy or sell an asset, such as currency, on or before a set future date.

Out-Of-The-Money
Option calls with strike prices above the price of the underlying contracts, and puts with strike prices below the price of the underlying contracts.

Outright Forward
Foreign exchange transaction involving either the purchase or the sale of a currency for settlement at a future date.

Outright Rate
The forward rate of a foreign exchange deal.

Overnight Limit
Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures.

Overnight Trading
Refers to a purchase or sale between 9.00 pm and 7.00 am.

Over-The-Counter Transaction (OTC)
A transaction arranged by direct negotiation, usually by telephone, rather than on an exchange.