Cyber*School

v. overnight

v. bond

abbr. Organization for Economic Cooperation and Developement

v. Ask-rate

abbr. Overnight Indexed Swap interest rate swap where the floating rate is linked to an overnight index, available for short terms (up to 1 year) and used in money markets contrary to regular IRS, the floating rate is not paid at every fixing date, but at maturity date as an effective interest rate, i.e. considering compound interest types of OIS: EUR: EONIA swap USD: Fed Funds swap GBP: SONIA Swap CHF: TOIS

(Unsecured exposure) The unsecured part of loans.

Sum of all received in an underlying futures contracts that have not been closed out or exercised yet.

The buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.

Interest rate for refinancing of commercial banks by the Austrian National Bank. Commercial banks sell securities to the Austrian National Bank. After an agreed period the commercial banks have to buy back the securities increased by the GOMEX rate.

a repo with unspecified maturity, i.e. with a maturity until further notice,It can be ceased both by the buyer and the seller

Transaction which creates a new long or short position.

The price at which a security first trades upon the opening of an exchange on a given trading day. (in contrast to the closing price)

The term operational risk is refered to risks within the company that may cause damage in a company. Under Basel II, in addition to the credit risk and market risk, operational risk is used to calculate the required equity capital for the first time.

An option is an agreement between two parties whereby one party (the option holder, buyer) has the right to perform a specified transaction having specified terms with the other party (the option issuer, seller). In finance, options are a type of derivative instrument. They are traded on exchanges as well as over the counter. They are linked to a variety of underliers including stocks, baskets of stocks, bonds, currencies, futures, swaps and commodities. While financial options come in many forms, there are two basic types: A call option gives the holder the right to purchase a specified quantity of the underlying at a specified strike price by a specified expiration date. A put option gives the holder the right to sell a specified quantity of the underlying at a specified strike price by a specified expiration date.

similar to convertible bond with the distinction, that the option can be traded apart from the bond

Options that are exercisable on each trading day during the entire term are American style options. Options that can only be exercised on the last trading day, are called European style options.

All options of the same type with the same underlying.

(Greeks) Indicate in absolute terms, how much the option price or a part of the option price changes when the influencing factors on the option price change by one unit. There are five sensitivity factors, which are marked with the Greek letter Delta, Gamma, Theta, Vega and Rho.

(Premium) Price, which is paid for an option.

Model for calculating the standard risk costs that considers a loan as a short put (= sold put option).

Identical options belong to one option series. ie type, underlying, strike price and expiration date are the same.

A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). Call options give the option to buy at certain price, so the buyer would want the stock to go up. Put options give the option to sell at a certain price, so the buyer would want the stock to go down. Options are extremely versatile securities that can be used in many different ways. Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset.

There are two types of options: calls and puts; Buy options and sell options

Statement of intent by a customer to buy or sell securities. An order can be specified according to specific criteria: Composition of the order (single / combined) and treatment in the order book (period of validity of limit orders; execution restrictions of market orders).

In the central order book of a stock exchange (with the exception of market orders) are all orders stored, examined for their feasibility and finally carried out. Therefore, the current order book is visible at any time.

An order document contains the name of the owner. The transmission of the order papers takes place by means of endorsement and delivery.

specified order type

The OECD was founded in 1961 and has its headquarters in Paris. It is a group of 30 member countries that discuss and develop economic and social policy. OECD countries are democratic countries that support free market economies. Over the years, it has dealt with a range of issues, including raising the standard of living in memeber countries, contributing to the expansion of world trade and promoting economic stability.

Was translated around 2005 in the German financial language. Designation will for a deal in which loans are issued to an independent company and eventually sold to investors in tranches.

abbr. for over the counterindicates a non exchange traded deal,typical for OTC-contracts is that all contractspecifications (e.g. maturity, volume etc.) can be fixed individually by the participating parties.opposite: exchange traded contracts at which the contractspecifications are fixed by the stock market.

abbr. over-the-counter Market

abbr. out-of-the-money

A call is out of the money when the price of the underlying is below the strike price. A put is out of the money when the price of the underlying is above the strike price.

Securities or mutual funds whose performance exceeds the market performance.

v. OTC

A decentralized market, without a central physical location, where market participants trade with one another through various communication modes such as the telephone, email and proprietary electronic trading systems. An over-the-counter (OTC) market and an exchange market are the two basic ways of organizing financial markets. In an OTC market, dealers act as market makers by quoting prices at which they will buy and sell a security or currency. A trade can be executed between two participants in an OTC market without others being aware of the price at which the transaction was effected. In general, OTC markets are therefore less transparent than exchanges and are also subject to fewer regulations. It is typical for OTC transactions that all contract specifications (eg duration, volume, etc.) can be determined individually by the parties involved.

over the counter trading

indicates a period which starts on trading day and ends on the following bank dayexample: on Tuesday the 15.03. O/N indicates the period from 15.03. to 16.03.

An interest rate swap involving the overnight rate being exchanged for a fixed interest rate. This short-term swap is used in the money market. Unlike normal IRS the variable part is not paid at every fixing but at the end of the period with compound interest. Different OIS: EUR: EONIA Swap, USD: Fed Funds Swap, GBP: SONIA Swap, CHF: TOIS.

maximum extent of a risk position which a trader is permitted to hold from one day to the next day (overnight) opposite: intraday limit