Currency Trading Slang
"The Loonie is looking slippery today. Let's focus on Bettie instead." Currency traders often speak a language of their own. Don't get caught off guard! Here is some essential trading slang.
Buba: a nickname for the German Central Bank, the Bundesbank. Although the Deutschmark is no longer around, Buba is still considered the most influential of the European System Central Banks, and it's reputation for focusing on controlling inflation is still respected to this day.
Choppy: If you ever take a look at a line-chart you might notice that it can sometimes look like Homer Simpsons hair: an up an down zig-zag across the chart. Choppy refers to short-lived price moves that do not continue for a long period in any direction. Kind of like a choppy sea.
Crater: when a market is ready to sell-off hard. "The EUR/USD market cratered earlier today after the Fed announced an interest rate hike".
Hit the bid: to buy or sell at the current market price, or bid.
Ship in, ship-out: another way of saying buy or sell.
Sidelines, sit on hands: when a market is looking slippery, or choppy, many traders will prefer to avoid trading, and wait for clear market conditions. "I sat on the sidelines, waiting for a clearer trend".
Slippery: a market is slippery when it looks like it could make a sudden move in either direction. Most traders want to avoid slippery markets, as it can mean a significant loss should they make the wrong decision.
Sloppy: is basically another word for choppy, meaning that the trading conditions lack any meaningful trend or clear direction.
Smoked: means to lose a lot of money on a trade or a series of trades. "We got smoked holding cables yesterday when the Asian market tanked."
Tanks: When a market suddenly drops. "Swissy tanked when Switzerland announced that it would no longer buy Euro reserves."
Trading Heavy:a market that keeps moving lower, despite attempts to rally it through buying.
Whipsaw: happens when a market makes a sharp movement in one direction and then quickly reverses course. Kinda of like getting whiplash when someone slams on the breaks while driving down the highway.
Yard: is a billion units of a currency. It comes from the French, milliard which means 1 billion. Although this is an older term, it is still frequently used by trader. For example "the ECB bought 2 yards of greenbacks", would mean that the "European Central Bank bought 2 billion US dollars".