Stock Exchange Jargon


Stock Exchange Jargon

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H

Head Fake

Fancy Way to Say: Fake Move Similar to a dead cat bounce, except that is performed by a specialist or a market maker. The specialist or MM will make a stock 'look' strong in an effort to bring out buyers when her real intention is to sell. But, instead of advertising those true intentions, she does the opposite in order to sell. This temporary buying usually ends quickly and is followed by a reversal. The same can happen in the opposite direction, with apparent weakness being used as a buying opportunity by the knowing party.

Hedge

Fancy Way to Say: Offset, Protect No, we're not talking bushes or shrubs. Instead, the term hedge is generally used to mean offsetting a position. It can also refer to protecting a profit. For example, if one is long 100 shares of XYZ but is wary of potential disaster, she can 'hedge' her position by buying a put against IBM. This insurance is used in case her feeling is right and XYZ does go into a coma.

Hit the Bid

Fancy Way to Say: Sell Since the bid price represents the price at which an investor is willing to buy, by telling a broker/trader to hit the bid one is instructing them to sell. In other words, hit that buyer, take out that buyer's stock.