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15 Wall Street Trading Floor Words Explained! - YouTube
Channel: UpDive
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in this video i'm going to teach you 15
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wall street terms used by traders
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like bagel land chunky or fog and no
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i wasn't swearing but it's the
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abbreviation f-o-k
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i'm not talking about 15 of these terms
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in this video so you can easily sound
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smart the next time you talk with
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someone working in finance
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[Music]
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welcome back to the channel guys i'm
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jason and the first word
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on our list is puke and it's not really
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wall street traders are actually puking
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or vomiting
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on the trading floor but i suppose that
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could still happen so puke means where
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the trader needs to sell a position
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at a loss especially if he or she thinks
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that it will lose
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even more money carry on from this there
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is something called a puke point for
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every trader so which is a threshold of
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pain
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that makes a trader want to sell or have
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to sell so it's different for every
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trader because the threshold or pain
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and confidence level of each trader is
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really different so even for the same
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stock a trader a
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could have a pure point of 10 and
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another trader b could have a few point
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of nine dollars and savvy investors like
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hedge funds you know they try to take
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advantage of this
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if they know the puke point of the
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person that they're trading with
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because usually that's emotional driven
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selling and that's not very good for the
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seller but great for the buyer
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coming in at number two slippage and you
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should pay attention to this because
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this affects you as well so not just
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these traders
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so this happens when trades are done at
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an unexpected price whether you buy
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or sell but it costs you money so let's
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say you're monitoring a stock
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that you really really want to buy and
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finally it's at ten dollars it's the
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price that you've been waiting for and
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you
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input an order to buy just one share of
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this stock at ten dollars but however
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your buy order gets filled at ten
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dollars and ten cents
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so that is the extra 10 cents in
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slippage because it's costing you more
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money now similarly if you are trying to
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sell a 10
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stock and the order is filled at 9.99
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that one cent is slippage because you
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sold it for less i know i know the
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numbers sound quite small but if you
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multiply
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slippage by a million shares that
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slippage really starts to add up to real
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money because a million shares being
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traded each losing 10 cents
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is equal to a hundred thousand dollars
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traders and portfolio managers they
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really care about these things they want
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to avoid slippage and there's three
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things for you to keep in mind so the
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first thing is
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slippage is more common in thinly traded
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stocks and securities so
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stocks that no one really buys or sells
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the volume is very low the second thing
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is slippage is
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more common around significant news
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events so like trading in meme stock
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that slippage
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is huge now lastly to completely avoid
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snippet you should use limit orders
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instead of market orders so unless you
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absolutely want to buy or sell
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a position use a market order but
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otherwise limit orders make
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the most sense if you want to avoid
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slippage coming in at number three
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the iceberg order so this is one of the
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many tricks that traders will do and the
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intention is to hide
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a big buying or selling order cutting a
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big order into many
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smaller pieces of trading orders so they
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can trade with stealth like a quiet
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ninja and not affect the price so if a
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trader wants to sell a hundred thousand
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shares they may chop it up and sell two
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thousand here
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five thousand here ten thousand here so
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now you can see why it's called an
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iceberg because
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literally they just want everyone else
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to see that top bit
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but it's at the bottom mass the big lot
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of shares that makes it an iceberg so
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this is actually very common it also
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helps the trader
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actually get a better average executed
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price than just
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dumping all the shares on the market at
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once number four
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spoofing now it kind of sounds like a
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ghost right
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so this is when traders put up orders
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then immediately cancel them
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to spoof them to fake activity and make
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others think there's a lot of trading
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interest and it happens in two ways if a
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trader wants to
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fake excitement they create fake bid
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prices and so they can submit buy orders
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and cancel them before it's executed the
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second way is if the trader wants to
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fake
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pessimism they create fake asking price
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or sell dollars and then again cancel
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them before it gets executed it's market
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manipulation
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it's illegal so don't do it oh by the
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way this wall street language wall
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street jargon is something that you're
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interested in so let me know in the
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comments below
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one is you're interested you want to
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hear more two nah
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not really you've heard enough number
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five it's time for popcorn so popcorn is
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a real trader language it is usually
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sent to each other in messaging
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terminals and this one's easy for you
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now when do we mostly eat popcorn when
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we watch a movie right so this is what
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traders would say
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when they sit back and start to watch
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another trader start to make his or her
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move
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and the person saying it popcorn anyone
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is watching a movie the one being the
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observer being on the sideline
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time for you to get some popcorn as well
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because we're just at number six there's
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nine more to go bagel land so what
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number does this
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a bagel look like a zero right so this
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probably originally
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started in new york although i'm not too
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sure but just because new york bagels
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are so famous so
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traders would say this like abc stock is
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going to bagel land meaning this stock
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is going to zero i suppose they could
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have also said
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abc stock is going to doughnut land why
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bagel land
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up next we have chunky now traders can
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say wow this stock is trading pretty
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chunky now that means the stock or the
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security is seeing an
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unusual level of block trading activity
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block trading is referred to many times
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in a tv series billions you need a
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little bit more insight about block
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trading you can check out my video here
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next up in number 8 we have dead cat
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bounce
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it's used to describe when it's a bear
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market and big
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down markets when asset prices are
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dropping and suddenly prices shoot up
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and the trader would think at this
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moment this is the kind of head fake in
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boxing because prices don't go up as
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much and then they start to fall again
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so what do
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dead cats bounce sound like i need to
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find a cat and try
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i actually have a bonus for you after
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the 15th one on the list so
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if you want to know keep watching and
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this is number nine on our list
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to get hit or get lift so you probably
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don't quite get what i mean
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because that's really trader language so
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here's the truth traders working on wall
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street they don't talk like
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i just bought a bond no they say things
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like i got hit at 98
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or i lifted him at 100. it sounds weird
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at first but let me explain
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so when a trader says i got hit in 98
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the 98
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is like a bond price a bond price
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reference and hit means to buy
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so try to imagine this somebody threw
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their assets or bonds
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at the trader and made them pay for 98
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so the trader bought it and 98 they got
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hit at 98. so one step further so if you
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think about
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setting limit orders like let's say you
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want to buy one share of tesla at 600
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then when the order indeed gets executed
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and then next time you can say to your
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friends
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you got hit at 600. and got lifted at
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100 it means
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selling at 100. so it's almost like the
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assets or bonds
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that weight gets removed from your
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shoulders you're now lighter you're free
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of it
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you're lifting so a quick recap hit is
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to buy let's say someone throws the
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asset at you you get hit
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you pay them cash and lyft is to sell so
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someone removes the weight of the asset
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takes the asset away from you
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and you get cash next up number 10 one
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of my favorite
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fill or kill literally f-o-k
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so this is a special type of trade order
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and that means the trade must be
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completely 100 executed otherwise
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it must be cancelled so to fill the
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order or kill the order
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so sometimes people also say o or
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non-order a-o-n
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it's the same but i think fox sounds way
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better and if you're new here and still
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haven't subscribed
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man i'm not swearing i'm just
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saying feel or kill the subscribe button
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now
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number 11 after let's talk wake me
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up so traders usually hear this request
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from their customers so this is
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literally when a customer wants a trader
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to let them know when a stock
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or bond or an asset is trading at some
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particular level so someone could say to
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the trader you know why don't you wake
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me up at 1 20. i think i have more to do
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that now we're at number 12
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pass the book so this really isn't wall
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street language or jargon that they
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say but it's rather what they actually
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do and everyone really understands it
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especially nowadays there are trade
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desks
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all over the world they're trading
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commodities bonds futures stocks
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in the same company but in different
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time zones so trade desks in hong kong
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when they finish the day
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passes the book to those in london to
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take care of the trading book then later
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on passes the book to
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new york and so on so passing the book
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is literally
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different trading desks taking over that
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trading responsibility we're at number
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13. now here's the funny one
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missed the stock it's not really like
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falling in love with the stock
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and not seeing the stock ticker and
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suddenly for a few seconds you feel that
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you really miss
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seeing the stock no no no that's not
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what it means what this means is it's
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usually because of very unfortunate
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timing so let's say there's a customer
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who wanted to buy tesla at 600
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today and a stock was indeed six hundred
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dollars but the
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instant the customer relayed that order
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to the trader the stock went to
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605 610 620 and never looked back
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then the customer could say to the
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trader so you missed all that stuff
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traded at 600
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yikes that trade is not gonna have a
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good day and number fourteen
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gunning a stock so gunning a stock means
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a trader
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is aggressively and somewhat
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unprofessionally
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moving the price of the stock buying or
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selling aggressively of the stock so a
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trader could say
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this stock really is moving man i can
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see that someone's really
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gunning the stock so the last one on the
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list on trader lingo we're talking about
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if it fits
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or if you care so these two mean exactly
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the same thing and it's usually used at
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the end of a sentence and it's when
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traders try to fish
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interest from other traders they can say
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i'll offer you a 98 400 000
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if you care well i'll pay you 25 for 200
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000
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if it fits so the person that's saying
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this doesn't really need a commitment
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just fishing interest
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[Music]
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now here comes the bonus now but the
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truth is i actually miscounted
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let's talk about the term you money so
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all traders know this term
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but it's really not limited to just wall
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street everyone probably understands
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this
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and it's like a puking point everyone
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has a different level of fu money it's a
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different for every trader it's
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different for every person and it's a
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matter of money that
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one day one day and i hope you can do
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this too
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allows anyone to own back their own time
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choices and life because you have
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enough money to do what you want
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whenever wherever
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like always thanks for watching
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