Help with technical trading terms

[suityou01]

Not checked the markets but I imagine they're ranging. Wouldn't Owly want a breakout trade, like a short straddle?

[Jog On]

If you want to trade Brexit make sure you look up the terms "margin call" and "guaranteed stop loss" and "negative balance protection".

Brexit could be another EUR/CHF or DJIA 'fat finger' event where price could go against you so violently that your stop doesn't mean anything and you end up not just blowing your antire account but with a negative balance and owing your broker money... Have a read of this :

How Switzerland made Alpari UK Insolvent in 2015

Some brokers tried to recover negative balances from thier clients without success, so they have since introduced clauses making customers liable to repay negative balances in the event of something like this...

That's the risk if using a trading account for Brexit - alternatively just go down the bookies instead

And the smart money will know the result in advance

[unemployed]

Bet on Brexit in euros

Bet on Bremain in sterling

Calculate arb =win

Minted

[Mordac]

If I had millions to waste ( I mean trade) I'd be selling sterling.

Wouldn't be buying Euros though. I may look stupid, but I isn't-ish...Oh feckity feck, where's me sodding coat...

[Mordac]

dogging?

Some of your private fantasies should remain just that. Private.

[Mordac]

Not a sarky post this, but I'm genuinely interested to know the technical term(s) for the "betting" or "positioning" which large investment banks might do in advance of the EU referendum in the hope of making pot loads of money.

I know, or think I know, that "hedging" is what they do to avoid losing loads of money, and I suspect the phrases I'm looking for may be, among possibly others, "going short" or "going long", depending on what they consider the most likely outcome.

Any ideas? Anyone round here a trader or savvy in trading lingo?

Or let's put it this way, if you were a Wall Street fat cat will billions to invest but eager to earn billions more, what would you do financially, assuming, say, you considered Remain more likely to win?

If I had millions to waste ( I mean trade) I'd be selling sterling.

[unemployed]

SmartShrimp has nailed it.

If you're familiar with horse racing, it's the equivalent of using oddschecker to get the best prices on what you want to do, or in-play betting in football (we're in-play on the long football match that is the campaign trail). Obviously there's the human element - gut feel. Do you realistically think that brexit or remain will happen and therefore you'd be more inclined to slight back one side more than the other.

I genuinely researched this Last night, Brexit vs pound to euro and vice versa.

The results are quite good

[LondonManc]

I doubt if any of the smart money has a direct position (too risky if it goes wrong), more likely a volatility arbitrage trade.

https://en.wikipedia.org/wiki/Volatility_arbitrage

They will be making money on the rising volatility between, say Euro or Pound vs something completely unaffected by the Brexit farce, and then make money on the falling volatility afterwards.

SmartShrimp has nailed it.

If you're familiar with horse racing, it's the equivalent of using oddschecker to get the best prices on what you want to do, or in-play betting in football (we're in-play on the long football match that is the campaign trail). Obviously there's the human element - gut feel. Do you realistically think that brexit or remain will happen and therefore you'd be more inclined to slight back one side more than the other.

[MrMarkyMark]

Snorting.........I mean shorting

[barrydidit]

dogging?

He's not talking abut toilet trading

[DimPrawn]

I doubt if any of the smart money has a direct position (too risky if it goes wrong), more likely a volatility arbitrage trade.

https://en.wikipedia.org/wiki/Volatility_arbitrage

They will be making money on the rising volatility between, say Euro or Pound vs something completely unaffected by the Brexit farce, and then make money on the falling volatility afterwards.

[FatLazyContractor]

dogging?

[OwlHoot]

Not a sarky post this, but I'm genuinely interested to know the technical term(s) for the "betting" or "positioning" which large investment banks might do in advance of the EU referendum in the hope of making pot loads of money.

I know, or think I know, that "hedging" is what they do to avoid losing loads of money, and I suspect the phrases I'm looking for may be, among possibly others, "going short" or "going long", depending on what they consider the most likely outcome.

Any ideas? Anyone round here a trader or savvy in trading lingo?

Or let's put it this way, if you were a Wall Street fat cat will billions to invest but eager to earn billions more, what would you do financially, assuming, say, you considered Remain more likely to win?