The Market Has Its Own Lingo, With Nicknames for Stocks Like Glass/Glue (Corning) and Mister Softee (Microsoft)

More Day Trading Terms

Quote

A quote consists of a bid price and an ask price. The ask price is the price at which the holder of the security will sell. The bid price is the price at which the prospective buyer will actually buy the security.

At the Money

This term is used to describe a security when the security’s price and the strike price are the same.

Risk

Risk can be measured by determining how volatile a particular stock is in relation to the rest of the market. One measuring stick used mostly in the S&P 500 is termed beta. A beta of over one denotes a security that is more volatile compared to the total market and has a higher risk associated with it. A beta of less than one denotes a security that has less risk and is not as volatile as the overall market.

Humorous Terms

Glass/Glue

This is the nickname given to Corning. It is derived from the ticker name that denotes Corning (GLW). The glass portion is based on the first two letters of the ticker name, G and L, combined with the fact that Corning is involved with fiber production. The Glue nickname stems from the ticker name alone because if the W in the ticker name was truly a double U (UU) then the ticker name would read GLUU and could possibly be pronounced as Glue.

Head Fake

This is a move used by a specialist or market maker in order to fool traders. The technique involves making a security falsely appear weak or strong and derives its nickname from the basketball move in which a player uses a slight head movement to fake a shot and fool the defense.

Mister Softee

This is the nickname given to the Microsoft Corporation and is derived from the company’s ticker name, MSFT.

Noon Ballon and Noon Swoon

These two rhyming terms do not necessarily refer to the time of day but denote a down time in the market. The noon ballon refers to when the market makes a rally from the down state and the noon swoon refers to an increase in sell-offs during this down period of the market.

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