A term used in corporate finance to describe bank accounts created and maintained outside the control of one’s country.

An offshore account is any bank account that was created in a foreign country and is generally funded from the proceeds of a person’s work in their own country. These accounts serve a variety of purposes, including as reserves for emergencies and as security against unreliable currency value fluctuations. The government of one’s own country may be aware or unaware of this account. If they know, it may have significant implications for the individual.

In crypto, as transactions are carried out online and globally, coins are often purchased with different currencies. However, some currencies are more valuable than others, so smart traders own offshore accounts to reduce the stress of using weak or fluctuating currencies.

A conditional pair of orders that ensure that the execution of one of the orders shuts down the other.

One Cancels the Other (OCO) orders are special orders characterized by controvert outcomes. OCO consists of two orders that are not generally opposite (that is, one buys and the other sells), but makes sure that once one of the orders has been executed, the other is terminated. It uses the typical ‘if-then’ condition to ensure that only favorable conditions are met.

OCOs are not very common. However, expert traders use them to enter and secure positions while reducing potential risks.

A crypto transaction that takes place outside a blockchain network.

Off-chain is a descriptive term used for transactions between crypto traders outside of a blockchain network. These transactions, although valid, are neither supervised by the network nor recorded at the time they were carried out. However, they are usually added later to the network, so that records can be created and affixed to the blockchain ledger.

Offshore Account

Previous term

Next term