The TFG Trading Matrix Glossary is a constantly evolving collection of terms that may be heard on our live hedge fund broadcasts.  Some of the entries on this list are financial world colloquialisms and acronyms, and others have been borne out of our unique culture and communication style.  Whether common or unusual, these words, acronyms, and phrases help us to communicate effectively with each other and maximize our collective intelligence.

Glossary of Terms Definition
"A" Trade A trade where all signals confirm each other
"B" Trade A trade is entered despite conflicting signals
ABA American Bank Association
Absolute Return Basis The return of an asset over a certain length of time (expressed relative to invested capital)
ADR American Depository Receipt
ADV Average Daily Volume
ARPU Average Revenue Per Subscriber
ASP Average sale price per unit
At the Money Option strike price and market price are the same.
Backwardation In the futures market when the price is below the expected future spot price and so the price will rise to the spot price before delivery date
Beta Hedge A position that offsets the risk of another position based on the volatilitiy of a stock relative to an index or the market
Binary Event An occurrence or piece of news that will yield only two distinct outcomes (i.e., drive the stock price higher or lower)
Blind Don't have visibility on my screen
Blue Dog Democrat A fiscally conservative Democrat
Boondoggle Work that is done merely to look busy, not to actually improve anything
Buy Side Institutions that invest large amounts of money in securities, usually money management companies
Can Cancelling an order
Capitulation Giving up any prior gains in stock price as market sells off (panic selling)
Carry Trade Borrowing currencies with lower interest rates and using the funds to purchase currencies with higher interest rates (in attempts to captures the spread)
Collateral Debt Obligation (CDO) Structured security backed by collection of loans.   Split into tranches with differing maturity and risk.
Contango In the futures market when the price is above the expected future spot price and so the price will drop to the spot price before delivery date
Correction A temporary decline in a stock's trading price during an uptrend
Credit Default Swap (CDS) A contract in which the seller of protection receives coupon payments from the buyer of protection who in return receives a payoff if the underlying entity goes into default.  Means of hedging against risk of default.
Cyclical Market A short term trend that appears as a retracement move within a longer term (secular) trend
D.K. Don’t Know
Day Trader's Paradise A volatile and liquid stock that allows for good intra day long/short opportunities
Dead Cat Bounce Market bounces back up after being on its lows and then continues to fall back down
Deluge A flood
DIP Financing Debtor-In-Possession Financing is used by a company while under bankruptcy and usually has priority over existing debt.
Directional Misprint A false print of a stock price
Doji In a candlestick chart, a candle that has little or no body, meaning the opening price and closing price of the period are the same or nearly the same
Dollar/Yen A cross for the currencies of the U.S. and Japan that indicates how many yen (quote currency) are required to buy one dollar (base currency)
Durable Goods Products that do not wear out quickly and can be used over a period of time
DWAP Dean's Woe-Filled Average Price.  Always followed by Dean lamenting that he should have bought more or less.
Easter Shift The rise in retail sales created by Easter, which can fall in March or April, depending on the year
EBIT Earnings before interest and taxes  
EBITDA Earnings before interest, taxes, depreciation, and amortization
Equity Tranche The lowest risk class of a CDO that bears the risk of payment delays and credit losses as it receives the remaining cash flows after debt tranche claims are fulfilled
Euro/Dollar A cross for the currencies of the EU and U.S. that indicates how many dollars (quote currency) are required to buy one euro (base currency)
Execution Trader Someone who executes trades on someone else's behalf, at the best levels possible
Execution Trader A person who buys and sells securities upon receiving verbal orders from portfolio managers
Exogenous Event An outside shock/occurrence that impacts the market
Exponential Increase If costs stay the same and revenues increase, the increase in profitability increases exponentially compared to the growth in revenue.
Fair Value The equilibrium price for a futures contract and refers to the relationship between the value of the futures contract on an index and the actual value of the index
Feeler Trade The initiation of a trade through use of a small percentage of  your maximum position size for the sole purpose of confirming your entry signals, typically less than 20% of max position
FFX Trend A trend that lasts for a number of years
Fibonacci Retracement Technical trading tool created by taking the distance between two extreme points and dividing it by the key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 100%)
Fill or Kill Fill the order or it’s cancelled
Fund Investors' money is pooled, and a fund manager chooses investments, as opposed to the investor.  There is less transparency and control than with a managed account.  
Fund of Funds A fund that invests in other hedge funds, as opposed to specific securities
GAAP Generally Accepted Accounting Principles
Gamble Calculated investment
Game Theory A mathematical concept that assesses behavior in strategic situations where an individual's success in making choices is dependent on another individual's choices
Gap Up/Down Sharp stock price move up/down with no trading occurring in between
Good 'Til Canceled (GTC) An order to buy/sell stock at a predetermined price that remains open until filled or canceled
Greenshoe Underwriter has the right to sell more shares than originally planned to investors, effectively increasing supply and smoothing out price fluctuations.
Haia A term that is only used to explain that the stock GAIA is going higher
Hammer Shlacked A stock that is driven down hard
Handle Whole dollar price of a quote
Hedgecast TFG's term for the live broadcast of our real hedge fund
Hump Day Wednesday
Humphrey-Hawkins  Legislation that required the FOMC to report the economy and monetary policy to Congress twice a year (still colloquially called the Humphrey-Hawkins reports)
Iceberg Order One large order split into smaller lots to hide actual quantity from the market ("below the surface")
Ichthyology The study of fish
IMHO In my humble opinion
Immediately Accretive When, during an acquisition, the acquiring company's earnings don't take a hit after they take over the acquired company
In the Money Option is worth money so you can exercise it for a profit.  For a call, the strike price must be below market price.  For a put, the strike price must be above market price.
Independent Research Research that is sold for a fixed price, not for a commission
Inside Day  A stock trades within its previous day's high and low all day.
Intellectual Turrets Inability to control one's intellectual articulation.  It is the difference between Senator Levin who can't stop saying "shitty" and Klein who goes on five minutes of excessive intellectualization.
Invincible Complex Possessing excessive convinction due to a profitable streak in trading
Jobless Claims A weekly report on the number of newly filed unemployment benefit claims and can be used as a gauge for the nonfarm payroll release
Kleinocologist One who thinks and acts like Jeremy Klein
Kuleana Responsibility
Large Vanilla Buyers Institutional buyers
LBO Leveraged buyout
Limit Up/Down The maximum amount that a futures contract price is allowed to increase/decrease in one day
Liquidity A security's ability to be bought or sold in the market without affecting its price.  A stock's average daily volume is often positively correlated with its liquidity.
Liquidity Hedge A position that offsets the risk that a stock cannot be traded quickly enough in the market in order to exit that position
Low Risk Buy Buying a stock on an R4 buy signal just above R3 or buying a stock on an S3 buy signal just above S4.
Low Risk Sell Selling a stock on an S4 sell signal just below S3 or selling a stock on an R3 sell signal just below R4.
Managed Account The investor chooses the investments.  There is less credit risk in a managed account than there is in a fund.
Management Fee A fee charged by the manger of an investment fund to compensate the firm for managing investors' money, typically a specific percentage of assets under management
Market on Close Market order executed as close to the end of the trading session as possible.
N.O.L. Net Operating Loss
Not Held A trader is asked to make a trade, and is not held accountable for the price at which he makes the trade
Observationalist One who studies the nature of reality
Ohm A unit of resistance
Om/Aum A way of deepening the mind's concentration and is chanted while practicing yoga (or while under stress or after a poor trade)
Option Series A set of calls or puts on the same underlying security with the same strike and maturity
Orange Line In Bloomberg, indicates previous settlement
Ords Ordinaries
Out of the Money Option is worthless if it expired today.  For a call, the strike price must be higher than market price.  For a put, the strike price must be below the market price.
Outside Day A stock reaches above its previous day's high or below its previous day's low.
Outside Reversal Day A stock goes lower than its previous day's low and then goes all the way up above its previous day's high (vice versa)
Over the Counter Trading that occurs directly between buyers and sellers instead of through an exchange
P.B.M.P. (Post Beat/Miss Pivot) Trade In the event that a company surprised to the up/downside with earnings this name will be traded by the desk for 3-4 days afterward
Pack Trading One firm holding multiple positions across different traders' accounts in the same stock
Painting the Tape Traders buy and sell a specific security among themselves, creating an illusion of high trading volume to entice investors to buy the stock, which will enable them to profit from it.  Painting the tape is illegal.
Pairs Trade When a long position in one stock is offset by a short position in another stock of the same sector
Performance Allocation A percentage of fund profits to which the fund manager is entitled in periods of positive returns
Piker A trader who trades small and speculatively so that growth potential as a trader becomes limited
Pinning/Pegging A stock's per share price will trend toward the strike price of a heavily traded option contract as option expiration approaches
Posting Painting a clear picture of the stock's chart so that the trader does not need to view the chart in order to receive information on how the stock is trading.  A post consists of the symbol, pivot signal, and one or more pieces of color.
Priced to Perfection Stock price has been bid up so much that only if earnings are perfect will the price go up.
Prime Brokerage Services provided by financial services firms to hedge funds and other investors seeking to borrow securities and cash
Probability Analysis The process of assessing and drawing conclusions on the mathematical likelihood of events occurring
Proprietary Firm A firm that keeps their research and information in-house
Proprietary Trading Desk A firm that trades with the firm's own capital as opposed to that of the investors to gain direct profit for itself
R3 Reversal Sell Pivot Stock moves up through R3 and then back down through R3
RASM Revenue per available seat mile - an important airline metric
Red Rooter One who roots for market/name to go red on the day
Regulation Fair Disclosure (Reg FD) A rule passed by the SEC to ensure public companies disclose all information to all investors simultaneously, thus preventing them from selectively disclosing information to individual investors
Revenues First Phrase used before interrupting a principal when what you have to say is revenue related.
Rip and Roll When the chart for a stock has a steep incline, a rounded top, and a slow decline, eventually breaking
Roundtrip Stock breaches R4 (S4), then breaches S4 (R4) and then comes back to R4 (S4)
S1 A form that must be filled out for an IPO offering
S3 Reversal Buy Pivot Stock moves down through S3 and then back up through S3 
Same Store Sales/Comp Sales Sales revenue generated by a retail store (that has been open for at least one year)
Scaling Process of entering/exiting a position in increments
Scalp Trade Looks to make several quick profits off small price changes.
Schizo Market Uncertainty in the market creating frequent directional changes
Secular Market A long term prevailing trend that tends to last 5-25 years and can be classified as bullish or bearish
Sell Side  A broker/dealer selling their research to buy-side firms for a commission
Sell-In A sale at wholesale to a retailer
Sell-Through A sale at retail
Shakeout An industry consolidation where stronger names take over weaker names
Shitty Senator Levin's description of the Goldman Sachs Abacus deal
Shlob A combination of a shmo and a slob
Sizing Setting dollar value of and number of shares in position
Softee/Mr. Softee Microsoft (ticker MSFT)
SPYaddict One who is addicted to trading SPYs
Systemic Event An occurrence from within the financial system that impacts the market
Targeted Amortization Class (TAC) Credit derivative that protects investor from a rise in prepayment rate or fall in interest rates.
Texas Hedge A trade that looked like a hedge, but actually turned out to increase risk exposure
The Box NASDAQ market maker box
Thesis/Story Trade A trading strategy based on a well thought out fundamental belief about a name or industry that will affect the price of a stock (tends not to be market movers)
Trigger Puller Someone who makes substantial decisions
Unch'd Unchanged stock price
Under the Offer Offer below market price
Up-Fronts Bulk sales by television industry of advertising time to advertisers
VIX The implied volatility of S&P 500 index options
VWAP Volume Weighted Average Price.  Calculated by taking the sum of the price paid for each share of a specific stock during one day (number of shares x price per share) and dividing that number by the total number of shares bought on that day.  It is basically the average price of each share bought on a specific day.
VWAP Trade When a share of stock can be bought for a price below its VWAP, it is considered a good trade, and vice versa.  The expectation is that the price will usually move back to the stock's VWAP level.
Weasel Type Sophisticated day trading strategy
Whipsaw When a stock moves in one direction, but then quickly moves in the other direction
Whoosh A large and quick move up or down in the market
Window Dressing Fund managers trading during the last few days of the month and/or quarter to make their reporting holdings to the fund shareholders more attractive
Working Orders Open trade orders
Yard $1B notional value
Yield to Worst (YTW) The lowest potential bond yield without the issuer actually defaulting


The TFG Glossy-ry

Bad Mood Jeremy Klein
Foreigner Dean Machado
Trafficking Shine
Zen Mark Moskowitz