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Other Peoples Money OPM

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Definition of 'Other Peoples Money OPM'

Other People's Money is often abbreviated to OPM.

This is exactly what it says, that is, you are using "other people's money" to trade with.

This could mean that you are a leveraged trader and putting down a small portion of the total monetary value of the trade that you are controlling.

It can also mean that you are a portfolio manager and the trades that you are making are with other people's money and not yours. In cases like this you will be paid a management fee which is a small percentage (usually between 0.2% and 5%) of the total assets under management.

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