Bond trader lingo

9 Mar 2020 Algorithmic trading: Computer programs that buy and sell vast amounts of stock at Bond yields move in the opposite direction of bond prices.

Importance of Trading Bonds. Trading bonds happens many thousands times a day and is an important part of global economic markets. The bond market is far bigger than the stock market and central banks conduct monetary policy in the bond markets. When buyers and sellers are trading their bonds, they dictate the yields of the various types of An axe (or "axe to grind") is the interest that a trader shows in buying or selling a security that is typically already on his books. If a trader holds a long position, but has short-term concerns, that trader’s axe toward short-term put options may be significant. Second, bonds usually produce a steady stream of income you can reinvest or use for living expenses. The price may go up or down, but barring default on the part of the issuer, the income from a Most traders are familiar with stock market terminology, but trading the bond market can be just as lucrative. Unfortunately, the bond market comes with its own set of terminology, and trading bonds successfully requires traders to understand at least the basics of bond market lingo. Can You Tell What These Traders Are Talking About? Test your knowledge of common meanings for trader terms, some of which banks look for as warning signs of potential market manipulation. Trading bonds may at first seem overwhelming, but, with a little research, the process is not as complicated as you might think. To fully understand bonds, you need to learn the lingo. Here is

Keep up to date on the latest finance lingo with the new iPad/iPhone app market because of sinking fund requirements, if the bonds are trading below par, this 

The universal principle, version 1. The largest part of a quant’s time is spent on swaps and swaptions, and therefore swap rates are the most familiar object. But, to be able to speak to rates traders you need to make a fundamental change to your point of view: The universal principle (v1): it’s all about bond prices. Traders will sometimes refer to trades or positions on the basis of their risk as opposed to notional dollar amount. A position with “a million of 01 (oh one)” for example, means that this position has a dv01 / dollar duration of a million dollars. “Speeds” means prepayment speeds in mortgage lingo. There are the floor brokers, the pit traders, the investment bankers, the research analysts, the quants, the hedge funders and the private equity folks, just the name a few. That means not every group will understand all of those phrases. We spoke to a former bond broker, who will remain anonymous, about the type of slang they use with each other. Bond Trading Lingo. October 12, 2015 · by · in Readings, Trading ·. I spent some time doing some research into Fixed Income, here are some terms that I found that I thought would be worth knowing. Credit trading – Corporate bonds and its derivative products such as CDS etc. Credit is more micro while rates is macro. The par value is also known as the face value of the bond, which is the amount that is returned to the investor when the bond matures. For example, if a bond is bought at issuance for $1,000, the investor bought the bond at its par value. At the maturity date, the investor will get back the $1,000. Learn the Lingo (Sales & Trading) These are bonds that trade both with a credit spread and an embedded call option on the equity. There is a default risk, but you also get a call option in the bond so that if the equity does really well you can convert into stock instead of holding the bond. Learn the Lingo (Sales & Trading) Learn the

In finance, a short sale is the assumption of a legal obligation to deliver to a buyer a financial Traders or fund managers may hedge a long position or a portfolio through one or more short positions. In contrast The trader can hedge this risk by selling government bonds short against his long positions in corporate bonds.

12 Mar 2019 One of the most misunderstood pieces of jargon is a new term, or acronym, Other smart-beta approaches focus on a stock's relative valuation, fundamentals or trading patterns. This Junk Bond ETF Holds No Oil Or Gas. 17 Sep 2014 Say two traders have $5,000 USD and they both wish to use $1,000 on one trade as margin. Trader A has an account leverage of 10: 1 and  26 Apr 2015 Traders will instantly know what the description “round G 4.18 VVS₂ be kept in check until a personal bond of trust is established over time. 22 Mar 2015 The floor plan of a typical bond-trading floor (part of the sell-side business) would be compartmentalized by asset class. A very basic  26 Nov 2013 Handy definitions of financial and economic jargon - from libor and quantitave easing to black swans and dead cat bounces.

with government bond futures. An alternative interpretation is that without the benefits of OTC trading, private benchmarks could lose out to government ones.

Second, bonds usually produce a steady stream of income you can reinvest or use for living expenses. The price may go up or down, but barring default on the part of the issuer, the income from a Most traders are familiar with stock market terminology, but trading the bond market can be just as lucrative. Unfortunately, the bond market comes with its own set of terminology, and trading bonds successfully requires traders to understand at least the basics of bond market lingo. Can You Tell What These Traders Are Talking About? Test your knowledge of common meanings for trader terms, some of which banks look for as warning signs of potential market manipulation. Trading bonds may at first seem overwhelming, but, with a little research, the process is not as complicated as you might think. To fully understand bonds, you need to learn the lingo. Here is Prop trading refers to trading with the bank's money on the bank's behalf (as opposed to being market maker). It means you can actively enter into risk positions, but you are paying the bid-ask spread to enter into positions (as opposed to harvesting bid-ask on every transaction as a market maker). Hi All Sorry for the very basic question. I'm use to the swaps lingo when it comes to bid / ask = pay / receive (whether outright, curve or fly). However when it comes to bonds being quoted in in yields, I understand that bid / ask = buy bond / sell bond . However, I do not understand the concept

Most traders are familiar with stock market terminology, but trading the bond market can be just as lucrative. Unfortunately, the bond market comes with its own set of terminology, and trading bonds successfully requires traders to understand at least the basics of bond market lingo.

An axe (or "axe to grind") is the interest that a trader shows in buying or selling a security that is typically already on his books. If a trader holds a long position, but has short-term concerns, that trader’s axe toward short-term put options may be significant. Second, bonds usually produce a steady stream of income you can reinvest or use for living expenses. The price may go up or down, but barring default on the part of the issuer, the income from a

26 Nov 2013 Handy definitions of financial and economic jargon - from libor and quantitave easing to black swans and dead cat bounces. 11 Mar 2016 “Learning the lingo is like picking up a second language. If a trader says, “I want to be long stocks and short bonds,” that means he wants to