Interpreting trader talk

Traders.pngCurrent financial and chemical market volatility is a bonanza for good traders, as it gives them more opportunity to take positions, up or down.

However, having traded on behalf of a chemical major in Houston, Texas, the blog knows from personal experience that not all traders get all their positions right, all of the time.

It therefore thought it might be helpful to provide some definitions of trader-speak, heard recently, to help clients interpret their comments:

The outlook seems pretty clear to me” = I’ve taken a long position, but I’m having second thoughts about it. What do you think?

It’s true that the market is not in good shape. But it’s not all bad either” = I’ve got a long position, and I can’t find any way of offloading it.

Its slightly worse than we anticipated, but its consistent with leading indicators” = I’ve got a short position which is in the money, but this might be the time to sell.

Not every product is heading south” = I’ve got a short position, and I’m hanging on to it till things really fall apart.

Nobody could have forecast these developments” = My boss is thinking of firing me, and hiring someone who knows what they’re doing.

More examples will, of course, be very welcome.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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2 Responses to Interpreting trader talk

  1. ashok 19 August, 2010 at 10:21 am #

    “It’s been very quiet recently, but we are in the middle of some stuff”.

    = Help, I have no clue how to make money in this market.

  2. Chris 23 September, 2010 at 3:08 pm #

    The armada coming is is all pre-sold.

    “those barrels are threatening my length and I wish to discredit them”

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