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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: bazooka who wrote (3802)	11/17/1998 4:23:00 PM
From: steve goldman	Respond to of 4969

Verbiage. From our newsletters (subscribe by sending email to tdesk@yamner.com with words Subscribe in Subject line), In any industry, verbiage is critical. All businesses have particular jargon which permits participants to speak concisely and with great clarity. And within specific industries, certain zones of activity might even adjust their vocabulary again to provide even greater specificity. If anyone has seen the television shows relating to emergency medicine, such as Chicago Hope or ER, they know how exciting it can be to watch the doctors in the emergency rooms while they are "doing their thing". They spew phrases such as "Run a central line, and give me a CB7, Kem 6, the systolic is 96 over 130, dropping, V-Fib, paddles." These individuals are able to disseminate a tremendous quantity of information such that those privy know exactly what and how the transaction will proceed. The same specificity in verbiage is found in the financial industry. Outside of medicine and the saving of lives, few things are as exacting and time critical as the dissemination of information relating to a securities transaction. Respectfully, all brokers and traders learn how to speak to non-professionals. We become accustomed to having several different variations of speech based upon to whom we are speaking, similar to how a doctor might discuss a diagnosis with a layperson and how the doctor might discuss the case with her chief resident. As an investor in the brokerage industry, understanding how to properly phrase your order will not only allow you to disseminate the information more rapidly but will also allow you to feel as though you have gained another level of expertise in the financial industry's fast paced and demanding markets. Below please find several typical scenarios along with what we would consider standard verbiage. Market BUY "Buy 100 ABC at the market"; Action, quantity, symbol, qualifiers Market Limit "Buy 100 ABC at 10 1/2", "ABC, Bid 10 1/2 for 100 shares", The lingo changes slightly depending on the parties. If I were executing against a market maker, I might say "ABC, 10 1/2 bid for 2000, you're offering." Stop "Stop Order: Buy 100 shares of ABC 10 1/4 STOP" "Stop-order; Buy 100 abc with a 10 1/4 stop" Stop Limit "Stop Limit Order Buy 100 shares of ABC 10 1/4 stop with a 10 3/8 limit", "Stop Limit Order - Buy 100 shares of ABC 10 1/4 Stop 10 3/8 limit" Discretion order "Buy 100 shares of ABC at 10 1/4, with a 1/4 discretion" 6. All or non, minimum, Fill or Kill, Immediate or Cancel. "Buy 100 ABC 10 1/4, All or None" "Buy 100 ABC 10 1/4, Fill or Kill" "Buy 100 ABC 10 1/4, Immediate of Cancel" 7. Replacing a Day order "Day around, buy 100 ABC 10 1/4 cancels the buy of 100 at 10 1/16" Replace a GTC/Open order. **careful on the open "Open (of GTC Around)…buy 100 ABC 10 1/4 cancels the buy of 100 at 10 1/16) Straight Cancel "Cancel the buy of 100 ABC 10 1/4", "Straight Cancel the buy of 100 ABC 10 1/4" Options Order, Action, Qty, Call/Put, Symbol, Strike Month, Limit/Mkt, Open or Closing Transaction "Option Order, buy 10 calls ABC Jan 15 at the Market" The above verbiage is just a fraction of what is utilized on the street. Nonetheless it provides a basis from which you can learn to talk more professionally with industry players.