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lunes, 8 de julio de 2013
Terms Used During Squawk Broadcast
Terms Used During Squawk Broadcast
The E-mini S&P 500 Futures contract at the CME trades in dollars in .25 (1/4 point) intervals as the minimum price movement. Each tick is worth $12.50 and each index dollar or is also known as a "handle". A handle = $50. So the E-mini would trade in this order:
1091.75
1092.00 these are known as "evens"
1092.25 these are known as "quarters"
1092.50 these are known as "half's"
1092.75 these are known as "seventy-five"
1093.00|
1093.25
The difference between the bid/ask is known as the spread. Sometimes the bid/ask is wide and there could be a dollar or more difference.
Quotes:
To speed up the quotes, prices are always quoted to the last quarter so it is presumed you know the market is trading at that particular dollar level. It is very easy to follow along once you listen in. For example:
The market is trading at 1225. "Half Bid at Even" would mean 1225.50 (bid) at 1226.00 (offer).
"Fifty Bid" = 1225.50
"Even Bid" = 1225.00
FREQUENTLY USED SQUAWK BOX TERMS:
BOOK: Buyers that have actual resting orders to Buy below the market and Sellers that have resting orders to Sell above the market at any given time. Currently the CME feed shows orders five (5) ticks above and below the current price. These resting orders are known in the industry as the "book".
BUY PROGRAMS: Using our proprietary Program Trading Indicator, we alert you to automated programs used by institutions that cause buying in the E-mini S&P Futures.
SELL PROGRAMS: Using our proprietary Program Trading Indicator, we alert you to automated programs used by institutions that cause selling in the E-mini S&P Futures.
PAPER: Paper: A generic term used to describe an order, a non-local participant, when the broadcaster isn’t certain of what the clearing firm is. Sometimes orders are transmitted to the pit by headset which makes it tough to know exactly who the broker’s buying/selling for. So if we’re not certain, you will hear us call the activity as a “Paper” player.
LOCALS: The “Local” is the market maker in the pit. The Local is a scalper who has a membership at the exchange and stands in the pit to take advantage of opportunity based on the instantaneous measurement of supply/demand. Locals are similar to the salesman at a car dealership, the Local helps facilitate trade between the small retail client and the large institutional client. Locals also pay deeply discounted commission because of the frequency and size of contracts traded.
CAR: Phrase for "Contract". 10 "cars" = 10 contracts
BID: The current price you would get if you sold at market
OFFER: The current price you would pay if you bought at market
INSTITUTIONAL: Trade Size Lots of 200 contracts or more
OFFERED: This means offered for SALE. 100 Offered at 50 means 100 contracts offered for sale at 1445.50
If you hear a big offer, this means someone wants to sell a big number of contracts above the market
CHOPPY: No real trend. Market is erratic and usually controlled by local's
THIN: Volume is light.
BEST: Highest bid or lowest offer at that given time.
ALL DAY: Used a summation term usually regarding quantity Example?25000 traded all day".
PULLS (OR PULLED): When an offer or bid quoted gets cancelled/withdrawn
FADING or FADES: Going the opposite way of the move or trend
PRINT: A price that is actually traded and sent out (printed) to real-time data
EVEN: Price is at an even dollar level: 1445.00 OR 1444.00, etc.
SMALL: Small car or contract lot. Not a big trade.
LIGHT: Same as above
TEN TIMES: Ten contracts
FIFTY TIMES: Fifty contracts
ON THE BID: Orders to buy on the Bid - usually limit orders.How the E-mini Trades:
The E-mini S&P 500 Futures contract at the CME trades in dollars in .25 (1/4 point) intervals as the minimum price movement. Each tick is worth $12.50 and each index dollar or is also known as a "handle". A handle = $50. So the E-mini would trade in this order:
1091.75
1092.00 these are known as "evens"
1092.25 these are known as "quarters"
1092.50 these are known as "half's"
1092.75 these are known as "seventy-five"
1093.00|
1093.25
The difference between the bid/ask is known as the spread. Sometimes the bid/ask is wide and there could be a dollar or more difference.
Quotes:
To speed up the quotes, prices are always quoted to the last quarter so it is presumed you know the market is trading at that particular dollar level. It is very easy to follow along once you listen in. For example:
The market is trading at 1225. "Half Bid at Even" would mean 1225.50 (bid) at 1226.00 (offer).
"Fifty Bid" = 1225.50
"Even Bid" = 1225.00
FREQUENTLY USED SQUAWK BOX TERMS:
BOOK: Buyers that have actual resting orders to Buy below the market and Sellers that have resting orders to Sell above the market at any given time. Currently the CME feed shows orders five (5) ticks above and below the current price. These resting orders are known in the industry as the "book".
BUY PROGRAMS: Using our proprietary Program Trading Indicator, we alert you to automated programs used by institutions that cause buying in the E-mini S&P Futures.
SELL PROGRAMS: Using our proprietary Program Trading Indicator, we alert you to automated programs used by institutions that cause selling in the E-mini S&P Futures.
PAPER: Paper: A generic term used to describe an order, a non-local participant, when the broadcaster isn’t certain of what the clearing firm is. Sometimes orders are transmitted to the pit by headset which makes it tough to know exactly who the broker’s buying/selling for. So if we’re not certain, you will hear us call the activity as a “Paper” player.
LOCALS: The “Local” is the market maker in the pit. The Local is a scalper who has a membership at the exchange and stands in the pit to take advantage of opportunity based on the instantaneous measurement of supply/demand. Locals are similar to the salesman at a car dealership, the Local helps facilitate trade between the small retail client and the large institutional client. Locals also pay deeply discounted commission because of the frequency and size of contracts traded.
CAR: Phrase for "Contract". 10 "cars" = 10 contracts
BID: The current price you would get if you sold at market
OFFER: The current price you would pay if you bought at market
INSTITUTIONAL: Trade Size Lots of 200 contracts or more
OFFERED: This means offered for SALE. 100 Offered at 50 means 100 contracts offered for sale at 1445.50
If you hear a big offer, this means someone wants to sell a big number of contracts above the market
CHOPPY: No real trend. Market is erratic and usually controlled by local's
THIN: Volume is light.
BEST: Highest bid or lowest offer at that given time.
ALL DAY: Used a summation term usually regarding quantity Example?25000 traded all day".
PULLS (OR PULLED): When an offer or bid quoted gets cancelled/withdrawn
FADING or FADES: Going the opposite way of the move or trend
PRINT: A price that is actually traded and sent out (printed) to real-time data
EVEN: Price is at an even dollar level: 1445.00 OR 1444.00, etc.
SMALL: Small car or contract lot. Not a big trade.
LIGHT: Same as above
TEN TIMES: Ten contracts
FIFTY TIMES: Fifty contracts
ON THE BID: Orders to buy on the Bid - usually limit orders.How the E-mini Trades:
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