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.