What Is an Open Position? An open position in investing is any established or entered trade that has yet to close with an opposing trade. An open position can exist following a buy, a long position, a sell, or a short position. In any case, the position remains open until an opposing trade takes place. Key Takeaways An open position
What Is the Open Position Ratio? The open position ratio is calculated as the percentage of open positions held for each of the major currency pairs on a given trading platform or exchange, relative to the total number of positions held for all the major pairs on that platform. It is a local indicator of
What Is Open Rotation? Open rotation is the system that is used to open trading on an options market. This process usually takes place for the first time each morning during a regular trading day. The open rotation system may also be used again if, at some point, trading is halted in the middle of
What Is Open Source? Open source refers to a software program or platform with source code that is readily accessible and which can be modified or enhanced by anyone. Open source access grants users of an application permission to fix broken links, enhance the design, or improve the original code. Open source software (OSS) hubs
What Is Operating Profit? A company’s operating profit is its total earnings from its core business functions for a given period, excluding the deduction of interest and taxes. It also excludes any profits earned from ancillary investments, such as earnings from other businesses that a company has a part interest in. An operating loss occurs
What Are Operating Activities? Operating activities are the functions of a business directly related to providing its goods and/or services to the market. These are the company’s core business activities, such as manufacturing, distributing, marketing, and selling a product or service. Operating activities will generally provide the majority of a company’s cash flow and largely
What Is Operating Expense Ratio (OER)? In real estate, the operating expense ratio (OER) is a measurement of the cost to operate a piece of property, compared to the income brought in by the property. It is calculated by dividing a property’s operating expense (minus depreciation) by its gross operating income. OER is used for
What Is Operating Income? Operating income is an accounting figure that measures the amount of profit realized from a business’s operations after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS). Operating income—also called income from operations—takes a company’s gross income, which is equivalent to total revenue minus COGS, and subtracts all
What Is an Operating Lease? An operating lease is a contract that allows for an asset’s use but does not convey ownership rights of the asset. These leases allow businesses to use the asset without incurring the high expenses involved in purchasing it. The business that leases the asset is called the lessee, and the
What Is an Operating Loss (OL)? An operating loss occurs when a company’s operating expenses exceed gross profits (or revenues in the case of a service-oriented company). A company’s operating profit is its profit before interest and taxes. Interest and taxes are not considered operating expenses in the way that cost of goods sold, selling
