What Are Open Mouth Operations? Open mouth operations are speculative statements made by the Federal Reserve System (FRS) to influence interest rates and rising prices within an economy—called inflation. Open mouth operations are the announcements by the Fed, also known as the central bank when it informs exchanges where the preferred interest rates should be and not the action of
What is an Open Order? An open order is an un-filled, or working order that is to be executed when an, as yet, unmet requirement has been met before it is cancelled by the customer or expires. The customer has the flexibility to place an order to buy or sell a security that remains in
What Is Open Outcry? Open outcry was a popular method for communicating trade orders in trading pits before 2010. The verbal and hand signal communication used by traders at stock, option, and futures exchanges are now rarely employed, replaced by faster and more accurate electronic order systems. Signals and shouts made in a particular manner and sequence would convey trading
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
