Page 127 - PRIAA Glossary
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OUTRIGHT
An order to buy or sell only one specific type of contract, (two parties agree to buy or sell a given amount of currency at a predetermined rate at some point in the future); an order that is not a spread order.
OVERNIGHT INDEX SWAP (OIS)
A swap in which a fixed rate of interest is exchanged for cash flows based on a daily-compounded overnight interest rate (e.g., the Fed funds rate in the United States). OIS provides a flexible hedging tool for banks and corporate treasurers.
OVER-THE-COUNTER (OTC)
Financial contracts or other instruments between two counterparties where the terms of such transaction are freely negotiated, as distinct from an exchange-traded transaction where the size, tenor and other terms are prescribed by the rules of the relevant exchange. Also referred to as “off-exchange”.
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