One Cancels the Other Order (OCO)

Similar financial terms

Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA) is based on a portfolio consisting of 30 blue-chipi stocks in the United States. The weights given to the stocks are proportional to their prices.

In-the-money
An option that has a positive value if exercised immediately. For example, a call when the exercise price is below the current price of the underlying asset, or a put when the exercise price is above the current price of the underlying asset.

Out-of-the-money
An option that has a negative value if exercised immediately. For example, a call when the exercise price is above the current price of the underlying asset, or a put when the exercise price is below the current price of the underlying asset.

Out-of-the-money options are usually not exercised.

At-the-money
An option that has zero value if exercised immediately. For example, a call or put when the exercise price is equal to the current price of the underlying asset.

Zero-one integer programming
An analytical method that can be used to determine the solution to a capital rationing problem.

All or none
Requirement that none of an order be executed unless all of it can be executed at the specified price.

All-or-none underwriting
An arrangement whereby a security issue is canceled if the underwriter is unable to re-sell the entire issue.

Near money
A domestic dollar deposit is money within the context of the US economy while tue euro-dollar deposit is near money held y a bank branch in an offshore money market, such as Luxembourg. So the eurodollar market is a place where banks outside the US accept (borrow from customers) and place (lend) dollar deposits.

Unseasoned issue
Issue of a security for which there is no existing market.

Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.

Tombstone
Advertisement listing the underwriters to a security issue.

Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received.

Target zone arrangement
A monetary system under which countries pledge to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates.

Stand-alone principle
Investment principle that states a firm should accept or reject a project by comparing it with securities in the same risk class.

Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.

Seasoned new issue
A new issue of stock after the company's securities have previously been issued. A seasoned new issue of common stock can be made by using a cash offer or a rights offer.

Seasoned issue
Issue of a security for which there is an existing market.

Seasoned datings
Extended credit for customers who order goods in periods other than peak seasons.

Risk prone
Willing to pay money to transfer risk from others.

Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a buffer stock of cash.

Postponement option
The option of postponing a project without eliminating the possibility of undertaking it.

Phone switching
In mutual funds, the ability to transfer shares between funds in the same family by telephone request. There may be a charge associated with these transfers. Phone switching is also possible among different fund families if the funds are held in street name by a participating broker/dealer.

Out-of-the-money option
A call option is out-of-the-money if the strike price is greater than the market price of the underlying security. A put option is out-of-the-money if the strike price is less than the market price of the underlying security.

One-way market
(a) A market in which only one side, the bid or asked, is quoted or firm. (b) A market that is moving strongly in one direction.

One-factor APT
A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows the expected return on any risky asset is a linear function of a single factor.

One man picture
The picture quoted by a broker is said to be a one-man picture if both the bid and offered prices come from the same source.

New money
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of those maturing.

Money supply
M1-A: Currency plus demand deposits
M1-B: M1-A plus other checkable deposits
M2: M1-B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits.
M3: M-2 plus large time deposits and term repos.
L: M-3 plus other liquid assets.

Money rate of return
Annual money return as a percentage of asset value.

Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called and individual account plan.

Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.

Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the home currency value of a foreign currency transaction.

Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances, commercial paper, repurchase agreements and government bills. The net asset value per share is maintained at $1. 00. Such funds are not federally insured, although the portfolio may consist of guaranteed securities and/or the fund may have private insurance protection.

Money market demand account
An account that pays interest based on short-term interest rates.

Money market
Money markets are for borrowing and lending money for three years or less. The securities in a money market can be U.S.government bonds, treasury bills and commercial paper from banks and companies.

Money center banks
Banks that raise most of their funds from the domestic and international money markets , relying less on depositors for funds.

Money base
Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.

Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts payable and receivable, and long-term debt) are translated at the current rate while non-monetary items (e.g. inventory, fixed assets, and long-term investments) are translated at historical rates.

Monetary policy
Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates.

Monetary gold
Gold held by governmental authorities as a financial asset.

Law of one price
An economic rule stating that a given security must have the same price regardless of the means by which one goes about creating that security. This implies that if the payoff of a security can be synthetically created by a package of other securities, the price of the package and the price of the security whose payoff it replicates must be equal.

Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge.

Hush money
Bribe; payment to keep someone quiet

Keep up with the Jones
Strive, especially beyond one's income to socialize and spend like others in the same neighborhood.

Prisoner's dilemma
A game frequently displayed in cop dramas on the telly. Two partners in crime are separated into separate rooms at the police station and given a similar deal. If one implicates the other, he may go free while the other receives a life in prison. If neither implicates the other, both are given moderate sentences, and if both implicate the other, the sentences for both are severe. Each player has a dominant strategy to implicate the other, and thus in equilibrium each receives a harsh punishment, ...

Tight money
When a restricted money supply makes credit difficult to secure. The antithesis of tight money is easy money.

Dear money
UK term for tight money.

Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price. Often substantially below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security.

Deep out of the money
A call option with an exercise pricesubstantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price. Often substantially below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security.

Monetary neutrality
A proposition that in the long run, a percentage rise in the money supply is matched by the same percentage rise in the price level, leaving unchanged the real money supply and all other economic variables such as interest rates.

This theory, a core belief of classical economics, was first put forward in the 18th century by David Hume. He set out the classical dichotomy that economic variables come in two varieties, nominal and real, and that the things that influence nominal variables ...

Earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.

Other sources
Amount of funds generated during the period from operations by sources other than depreciation or deferred taxes. Part of Free cash flow calculation.

Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations not requiring interest payments that must be paid over a period of more than 1 year.

Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due within 1 year.

Other capital
In the balance of payments, other capital is a residual category that groups all the capital transactions that have not been included in direct investment, portfolio investment, and reserves categories. It is divided into long-term capital and short-term capital and, because of its residual status, can differ from country to country. Generally speaking, other long-term capital includes most non-negotiable instruments of a year or more like bank loans and mortgages. Other short-term capital i ...

Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained earnings. Also called shareholders' equity.

Principal Orders
Principal orders refers to hte activity by a broker or dealer who buys or sells for his or her own account and risk.

Limit Order
An order that can be executed only at a specified price or one more favorable to the investor.

Good till cancelled order
A good till cancelled order (GTC) is an order to a broker instructing him to buy or sell shares at a specified price which remains valid until cancelled by the client or by execution.

Day Order
A buy or sell order that will expire automatically at the end of the trading day on which it is entered.

Stop-limit order
A stop order that designates a price limit. In contrast to the stop order, which becomes a market order once the stop is reached, the stop-limit order becomes a limit order once the stop is reached.

Stop order (or stop)
An order to buy or sell at the market when a definite price is reached, either above (on a buy) or below (on a sell) the price that prevailed when the order was given.

Stop-loss order
An order to sell a stock when the price falls to a specified level.

Sell limit order
Conditional trading order that indicates that a security may be sold at the designated price or higher.

Pecking-order view (of capital structure)
The argument that external financing transaction costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, new debt is next, debt-equity hybrids are next, and new equity is the least preferred source.

Open (good-til-cancelled) order
An individual investor can place an order to buy or sell a security. That open order stays active until it is completed or the investor cancels it.

Negotiable order of withdrawal (NOW)
Demand deposits that pay interest.

Market order
This is an order to immediately buy or sell a security at the current trading price.

Limit order book
A record of unexecuted limit orders that is maintained by the specialist. These orders are treated equally with other orders in terms of priority of execution.

Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated price or lower.

Cross-border risk
Refers to the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent.

Order
Instruction to a broker/dealer to buy, sell, deliver, or receive securities or commodities that commits the issuer of the "order" to the terms specified.

Fill-or-kill order (FOK)
A trading order that is canceled unless executed within a designated time period. A market or limited price order that is to be executed in its entirety as soon as it is represented in the trading crowd, and, if not so executed, is to be treated as canceled. For purposes of this definition, a stop is considered an execution.

At the opening order
In context of general equities, market order or limited price order that is to be executed at the opening (and corresponding price) of the stock or not at all, and any such order or portion thereof not so executed is to be treated as cancelled.

Day around order
A day order that supersedes (cancels and replaces) the previous order by altering its size or price limit.

Stop Limit Order
A stop limit order is an order that goes into force as soon as there is a trade at the specified price. The order, however, can only be filled at the stop limit price or better.

Good This Week Order (GTW)
Order which is valid only for the week in which it is placed.

Autocorrelation
The correlation of a variable with itself over successive time intervals.