What is the full form of OTB in the Share Market?

The OTB Full Form in the Share Market is Open to Buy. This is used to describe the goods that are planned to be purchased at a specific time, but has not been ordered yet. The process of organizing sales and purchases of items is referred to as OTB and it is commonly measured in dollars or in units.

Points to remember while using OTB:

It is mandatory to maintain and monitor OTB for each category separately. Retailers should monitor and calculate OTB only on the retail price. Traders should keep in count the deliveries that are in transit and all the outstanding merchandise purchase orders before calculating OTB. They should also close all the opened purchase orders if they are expecting more deliveries, as pending deliveries can cause errors in OTB calculation.

Benefits of OTB inventory:

OTB helps retailers to understand the quantity of merchandise that they wish to buy. By calculating OTB, retainers will create a plan to calculate the money they require to purchase future inventory orders for a specific period of sales. Planning OTB allows retailers to have better control over their inventory and also to stay cash flow positive at all times.