MARKET STRUCTURE DICTIONARY

T+1 A term used to indicate a settlement date that is one business day following the trade date. Also known as next day settlement.

T+2 A term used to indicate a settlement date that is two business days following the trade date.

T+3 A term used to indicate a settlement date that is three business days following the trade date. Also known as regular way settlement.

TABB Group A research and advisory firm established in 2003 that focuses on capital markets and trading.

tack A synonym for "side" or "direction of speculative interest." For example, Given the overwhelmingly positive sentiment, I'll be taking the bear tack in the market.

tag ends A slang term for the final shares remaining to be executed from a relatively large order. For example, ZVZZT, we've sold a million, and we're starting to get to tag ends. Let me know if anyone wants to participate on a clean up.

tail ender A small speculator who tends to make commitments after the majority of a price move has already run its course.

tailer A small speculator who emulates the trades of larger market participants.

tailgating Purchasing shares immediately after buying the same stock for a customer under the assumption that the customer possesses superior information.

tailwinds Forces that act to propel stock prices higher, as in XYZ has definitely caught a tailwind since the analyst at Morgan recommended it.

take a bath Experience a substantial loss in a position, as in We really took a bath in that ZVZZT trade your shop recommended.

take a flier Engage in high risk, possibly reckless trading activity. Sometimes implies that the commitment made was relatively small. For example, I think I'll take a flier in XYZ. After all, how much could it really hurt?

take a position To buy or sell stock in order to establish a net long or a net short position.

take a powder To temporarily cancel an order or an indication in anticipation of more favorable trading conditions. For example, I think I'm going to take a powder during this mid day lull and come back in the last hour when the trading heats back up.

take a report 1. Industry jargon meaning "your order has been executed in full." For example, Take a report, you bought a total of 100,000 XYZ at $50.1026. Working nothing right now. 2. More generally, a synonym for "you are done" or "go away." For example, My girlfriend wants to go shopping for wedding rings this weekend. --- Bro, take a report, you are done.

take delivery To accept and receive ownership rights of a security.

take down 1. Another term for buy. Usually implies that the purchase involves a relatively large block of stock. For example, I'm looking to take down some XYZ if you know of anyone looking to unload a piece. 2. More specifically, a purchase of shares by a member of an underwriting syndicate.

take 'em (it) Trader's jargon meaning "I will purchase the shares you offered under the terms you stipulated." For example, XYZ, 10,000 at $50.25. --- I'll take 'em.

take 'em and bid 'em Trader's jargon meaning buy all of the stock quoted at the best ask and then bid for the balance of the order at the former asked price.

take fee A per share fee charged by exchanges and alternative trading systems to customers who remove liquidity from their system. See also REBATE.

take liquidity  Hit bids or take offers.

take me/you along Industry jargon meaning participate equally in a situation in which a particular execution trader possesses more than one order of equal priority. For example, ZVZZT, I catch 100,000 to buy at the market outside of you. Do you want me to take you along? --- Yeah, take me along please. See also SPECIALIST GO ALONG.

take off Rally sharply in price. For example, ZVZZT has been building a base for a while. I bet it's about ready to take off.

take off (a trade)  Unwind a position.  

take on a line Establish a substantial long position, usually over a period of time. For example, I have been watching XYZ build a base for a while now, and I think it's time for me to take on a line. In contrast to PUT OUT A LINE.

take profits To exit a profitable position thereby converting paper profits to real profits, as in ZVZZT, I think I may take some profits before they report. See also PROFIT TAKING.

take stock down Aggressively offer stock at successively lower prices, as in It looks like Monty took the stock down a quarter to put up that block. The opposite of CARRY UP STOCK.

take the offers 1. In general, means to buy stock from the traders quoting the best ask. Usually implies bidding for enough stock to remove all liquidity from the best ask thereby establishing a new higher asked price. 2. More specifically, OTC traders take the offers by simultaneously bidding each market maker quoted at the best ask. For example, ZVZZT, I'm going to take the offers at $25 and bid for your balance there. Also known as lift the offers. Opposite of HIT THE BIDS.

take up shares To fully pay for formerly margined shares.

take your temperature Trader's lingo meaning "gauge your interest" in participating in a specific trading situation. For example, XYZ, I'm in touch with a natural seller. Why don't you take your guy's temperature and see if he lives in here.

takeover stock Shares of a company with a high likelihood of being taken over by another company.

takes a call Trader's lingo that is basically the equivalent of treat me subject. For example, ZVZZT, I can probably bring out 50,000 in line, but it's going to take a call.

takes me out of the name Trader's jargon meaning "after this trade, I will have no position (or further interest) in that particular stock." For example, XYZ, take an additional 100,000 for sale not held, takes me out of the name.

talking your book Publicly promoting a stock in which one has an existing position. For example, Hey, it looks like Joe is yapping on CNBC again. --- Don't even listen, he's just talking his book.

tank Drop precipitously, as in Hey Jim, thanks a lot for the recommendation this thing is tanking.

tap the bids To source liquidity by selling stock relatively lightly into the best bid. Less aggressive than HIT THE BIDS. For example, ZVZZT, why don't you tap the bids a little and see if we can uncover a hidden buyer.

tape 1. Short for ticker tape, as in XYZ, 100,000 just hit the tape. 2. Industry jargon for news services, as in ZVZZT, it looks like some news just hit the tape. See also ON THE TAPE.

Tape A The reporting service of the CONSOLODATED TAPE ASSOCIATION that covers New York Stock Exchange listed securities. Also known as Network A. See also TAPE B and TAPE C.

Tape B The reporting service of the CONSOLODATED TAPE ASSOCIATION that covers securities listed on any national securities exchange other than the New York Stock Exchange or the NASDAQ. Also known as Network B. See also TAPE A and TAPE C.

Tape C A trade reporting service that covers NASDAQ and over-the-counter securities. See also TAPE A and TAPE B.

tape is late Display of market data on an exchange tape is significantly delayed due to unusually heavy volume.

tape price The last sale of a stock as reported on the ticker tape.

tape racing Another term for front running.

tape reading 1. Watching the ticker tape to ascertain prices. 2. Watching the ticker tape in an attempt to forecast price movements.

tape trader A speculator who makes short term trading decisions based mainly on the action reported on the tape.

target inventory   Positions that a broker/dealer wishes to hold.  The target inventory of a broker/dealer who does not wish to invest, trade, or hedge is zero.  

target volume order An order to participate with overall trading volume at a specified percentage rate. For example, XYZ, take an order to buy 250,000 shares, be a quarter of the volume. See also PERCENTAGE ORDER.

TCA An abbreviation of transaction cost analysis.

technical conditions 1. A situation that exists when price movements are the result of stock manipulation. 2. A situation that exists when price movements are the result of enforced liquidations or forced short covering.

technical market 1. A market in which price movements are the result of stock manipulation. 2. A market in which price movements are the result of enforced liquidations or forced short covering.

technical trader  A trader who seeks to profit by uncovering recurring price patterns and using those patterns to predict future price movement.   

teenied A derogatory slang term used to describe a situation in which one trader undercut or outbid another trader by a sixteenth of a dollar. For example, ZVZZT, I'm getting teenied again by some dope in the machines.

teeny Trader's slang for sixteenth, as in ZVZZT, I'll pay a teeny for 10,000 for a number.

telephone booth A room or private area maintained by a member firm on the trading floor of an exchange. Used as a central order routing and communications hub for the firm's floor brokers and floor clerks. More commonly known as a booth.

temperature, take your Trader's lingo meaning "gauge your interest" in participating in a specific trading situation. For example, XYZ, I'm in touch with a natural seller. Why don't you take your guy's temperature and see if he lives in here.

tension See PRICE TENSION.

term A period of time. For example, XYZ, I'm in this for the long term. I am an investor.

test Describes the action of a stock as its price approaches a support or resistance level, as in It looks like XYZ is about to test its fifty two week lows again.

test the bid Sell a small amount of stock into the best bid in order to determine if a hidden reserve order is present. For example, I think I'm going to test the ZVZZT bid a little bit, see if that guy is real. See also PINGING.

test the offer Buy a small amount of stock from the best ask in order to determine if a hidden reserve order is present. For example, XYZ, why don't you go ahead and test the offer a little. If there's something actually there, I may get more aggressive. See also PINGING.

They Industry jargon for the mysterious, omnipotent, and omniscient forces that seemingly drive the markets. For example, It looks like They really want to close the market on the highs today.

thick stock Describes a stock with a high trading volume and narrow spreads. As opposed to a THINLY TRADED stock.

thin margin Using a relatively small amount of personal funds to establish and maintain a position. The vast majority of the position is financed.

thin market An illiquid market characterized by relatively wide spreads, as in The market has gotten pretty thin after that early morning flurry.

thinly traded Describes a stock with a low trading volume.

third market Industry jargon for the trading of exchange listed securities in the OVER-THE-COUNTER MARKET. Term does not apply to NASDAQ stocks. See also UPSTAIRS MARKET, FIRST MARKET, SECOND MARKET, and FOURTH MARKET.

third market firm An over-the-counter firm that deals in exchange listed securities.

third market maker An over-the-counter dealer that specializes in making markets in exchange listed securities.

Thomson Reuters See Reuters.

three quote rule A FINRA requirement that order entry firms call at least three dealers to obtain prices when they hold an order in a stock for which there are not at least two quotes visible on a quotation system.

throwaway quotation Industry slang for nominal quotation.

thundering herd An historic slang term for Merrill Lynch.

tick 1. The minimum price movement allowed, as in XYZ is only up four ticks today. 2. A change in price, as in XYZ, we're a seller of 25,000, need the tick. See UPTICK and DOWNTICK.

tick sensitive order A order whose limit price is conditional on the last change in market price. See BUY DOWNTICK ORDER and SELL PLUS (UPTICK) ORDER.

tick test rules Rules established by the Securities and Exchange Commission to govern the execution of short sales. When in force, tick test rules generally dictate that short sales can only be made on an uptick or a zero plus tick.

ticker An electronic device used to relay trade information from the exchanges to individual traders. Generally provides the ticker symbol along with quotes or the latest trade price and volume data. First introduced in 1867.

ticker symbol A system of letters used by traders to identify particular securities. Every publically traded stock in the United States is assigned a unique symbol. Historically, listed stocks were represented by symbols that contained three or fewer letters, while NASDAQ and over-the-counter stocks used symbols that contained four or five letters.

ticker tape 1. An electronic service that relays trade information from the exchanges to individual traders. Generally provides the ticker symbol along with quotes or the latest trade price and volume data. First introduced in 1867. 2. The actual paper originally used in ticker tape machines.

Photo Credit:  Museum of American Finance

tickerosis Industry slang for the habit of constantly monitoring trades as they cross the ticker tape.

The Bar Cafe Savarin has everything a thirsty man with tickerosis might need

Circa 1901

Photo Credit:  Museum of the City of New York

ticket A written (or electronic) customer order that provides detailed trading instructions. Short for order ticket. For example, ZVZZT, take an order to buy 10,000 at $25, ticket coming.

tight Describes a price that is very close to the current inside market. For example, ZVZZT, where can you offer my guy 100,000? This one needs to be tight.

tight market A liquid market characterized by relatively narrow spreads. For example, I know spreads have tightened since decimalization, but has liquidity really increased in these names? I'm not so sure.

time and sales A record of each individual trade during a specific time period. Includes time, price, volume, and exchange.

time horizon The period of time that a trader expects to hold a position, as in My time horizon on this trade is about two hours.

time of day order An order that becomes live at a specific predetermined time.

time order 1. An order that is good only for a specified amount of time. 2. An abbreviation of time of day order.

time precedence rules Exchange rules that stipulate that orders with the same limit price must be prioritized by time of entry. See also PRECEDENCE RULES.

time stop order A stop order that uses time instead of price as its trigger mechanism.

time weighted average price order (TWAP order) An order that evenly distributes partial executions over a specified period of time, as in ZVZZT, take an order to buy 100,000, just TWAP it to the bell.

tip Supposed inside information given by one trader to another.

tip from a dip Supposed inside information given by one trader to another.

tippee One who receives tips.

tipper One who offers tips. Also known as a tipster.

tipster One who offers tips. Also known as a tipper.

tired Describes the last stage of a bull market as buy interest becomes exhausted. For example, The market has really looked tired the past few days. I bet we see a reversal soon.

to come Trader's jargon meaning "remains to be bought." For example, XYZ, you've bought 15,000 so far at $50, 10,000 more to come.

to go 1. Equivalent of "for sale," as in XYZ, I have 100,000 to go at $50. Sometimes stated as to travel. 2. Trader's jargon meaning "remains to be sold," as in ZVZZT, you've sold 15,000 so far at $25, 10,000 to go.

to the bell To the close of trading, as in XYZ, sell 100,000 from now to the bell.

to travel Equivalent of "for sale." For example, XYZ, I have 100,000 to travel with an ultimate $50 low. Also known as to go.

tone The overall condition of the market as indicated by trading activity. For example, The tone of the market was decidedly upbeat today after XYZ pre-announced better than expected results.

Tontine Coffee House A coffee house established in New York City in 1793. It was located at the northwest corner of Wall and Water Streets. The Tontine became the central meeting place for the original signers of the Buttonwood Agreement as well as other prominent New York merchant traders. As such, it was the most prominent unofficial securities exchange in New York from the end of the 18th century through beginning of the 19th century. It was the group of merchant traders at the Tontine that would officially form the New York Stock and Exchange Board in 1817. The Tontine continued to be used as a coffee house until 1834 when it was legally converted exclusively to business use. The structure was ultimately replaced by an office building in the 1850s. See also NEW YORK TONTINE COFFEE HOUSE COMPANY.

Tontine Coffee House by Francis Guy, circa 1797

too late to cancel An addendum provided by a trader to a customer who has cancelled his order. It stipulates that the order was already executed (or partially executed) prior to the cancellation. For example, XYZ, you bought 9500 additional at $50 too late to cancel, you're out on the balance.

top 1. The highest price a buyer is willing to pay, as in ZVZZT, buy 50,000 with a $25 top. See also ULTIMATE TOP. 2. An abbreviation of top price, as in It is quite possible that we have seen the top in XYZ for a while.

top heavy Describes an overbought market where a price decline appears imminent. For example, We've certainly seen a lot of positive news out recently, but honestly, I think the market is getting a little top heavy.

top of the book The best bid or offer published by a particular market center.

top price The highest price reached during a specific time period.

top the bid To make a bid slightly higher than the current best bid, as in Some guy just topped me at three teenies in ZVZZT.

topping out A leveling of prices after a prolonged advance.

toppy An abbreviation for top heavy. Describes an overbought market where a price decline appears imminent. For example, I gotta say, XYZ is really starting to look a little toppy up at these levels.

torpedo stock A stock whose price has already fallen precipitously and appears set to continue to fall.

total A complete representation of trading interest in a stock for a particular period of time. For example, XYZ, I have 100,000 to buy, that's my total.

total volatility  The sum of FUNDAMENTAL VOLATILITY and TRANSITORY VOLATILITY.  

total volume The total number of shares traded across all exchanges during a particular period of time.

TotalView A subscription service offered by NASDAQ that provides the full order book depth for all NASDAQ market participants. Also disseminates the net order imbalance indicator for opening and closing crosses. Services NASDAQ, NYSE, and Amex stocks.

touch off the stops A situation in which a move in the market causes stop orders to be exercised, which in turn magnifies the price move thereby causing more stop orders to be exercised. Creates a snowball effect.

touch, the Industry jargon for the inside market. Used primarily in England. Also known as the touchline

touched off Describes a limit order or a stop order as it begins to receive partial executions because the market has moved in line with the stop price on the order. For example, XYZ, your order at a half just got touched off. I'll be back to you shortly with an official execution price.

touchline Industry jargon for the inside market. Also known at the touch.

tout Promote a stock.

trade 1. A completed transaction between a buyer of shares and a seller of shares (or their intermediaries), as in ZVZZT, we've traded a total of 85,000 so far today. 2. To cross stock, as in XYZ, we trade 50,000 at $51, come out in touch with two ways. 3. To execute a customer order. Sometimes implies that a dealer has front ended the order. For example, ZVZZT, let's go ahead and trade 25,000 here, and I'll work the balance. 4. To buy and sell securities, as in I'm going to trade around a little in ZVZZT, see if we can get involved.

trade-at rule An SEC proposal that would prohibit broker/dealers from internalizing customer order flow if the price to the customer matches the NBBO. The dealer would instead be mandated to route such orders to the marketplace for execution or provide price improvement internally.

trade blotter A log maintained by a dealer of daily customer trading activities. Includes orders entered and executed along with corresponding details. More commonly referred to simply as a blotter.

trade break A discrepancy on the books of a broker/dealer. Often involves a trade with another broker/dealer.

trade date The date that a trade was actually executed.

trade 'em Trader lingo meaning "I accept your proposition." For example, XYZ, right now I can pay you $50.25 for 50,000. --- Let's trade 'em.

trade flat 1. To open and close a position at the same price, without generating a profit or a loss. For example, Given the market action, I feel lucky to have traded ZVZZT flat. 2. To execute a customer order without charging a commission or a markup/markdown, as in I know we were a little out of synch on this one, so I'll go ahead and trade it flat for you.

trade me out Trader's lingo meaning "take a order to sell my long position, work not held." For example, I leave about 18,000 shares of ZVZZT on my ticket, just trade me out of it by the end of the day.

trade out of stock Equivalent of "sell stock." For example, I just bought 100,000 ZVZZT from a vanilla guy who needed the favor. I think it will be okay as long as we trade out of it by the close.

trade reporting All trades in exchange listed and NASDAQ stocks, as well as many OTC equities, must be reported to the tape in a timely fashion. In a trade between two market makers, the seller reports the trade. In a trade between a market maker and a non-market maker, the market maker reports the trade. In a trade between two non-market makers, the seller reports the trade.  FINRA requires that non-electronic OTC equity trades trades be reported to a FINRA Facility within ten seconds of execution during normal market hours or during the pre-market/after market trading session.  

Trade Reporting Facility (TRF) An electronic service that provides FINRA members with a trade reporting and reconciliation mechanism for transactions effected otherwise than on an exchange. Facilitates the post-execution steps of price and volume reporting, comparison, and clearing of trades in over-the counter, NASDAQ, and other exchange listed securities.

trade resumption The reopening of trading following a trading halt, as in Trading will resume in ZVZZT at 2:00pm ET.

trade through To trade in one market center at a price that is inferior to the inside market available in another market center. For example, Whoa, someone just traded 250,000 of ZVZZT through my bid, probably in some dark pool. Not cool. Much less common in an era of computerized trading and Reg NMS.

Trade Through Rule See Order Protection Rule.

trader One who makes a business of buying and selling securities. Includes market makers that provide quotes and trade as principal, dealers, agency traders, execution traders, traders at institutional investors, and individuals who regularly seek to profit from short term price swings.

trader's market A market that fluctuates within a relatively narrow range.

trades ahead A situation in which a trader who received a customer order missed the stock because shares traded in the market before the trader had a chance to execute the order. For example, Unfortunately, ZVZZT trades ahead at $25.20. I am working there for you.

trades by appointment Describes a stock with a very low average daily volume, as in I'm trying to lose some of this ZVZZT for you, but this stock trades by appointment.

trades like water Describes a stock with a high daily trading volume. For example, What do you mean you had to take XYZ up twenty cents to buy 10,000 shares? Seriously, this thing trades like water, bro.

trading Buying and selling securities. Usually implies a relatively short holding period.

trading ahead A situation in which a specialist holds buy and sell orders that he could pair off as agent, but instead executes one of the orders from his own account as principal. Has historically been violation of exchange rules.

trading arcade A facility that provides electronic trading tools to individual speculators who trade for their own account.

trading authorization 1. A document provided by a retail customer that allows a broker to execute trades on his behalf. 2. A document provided by an institutional investor that informs a broker/dealer which parties are allowed to execute trades on behalf of the institution.

trading away (from us) Describes a situation in which a marketable customer order is not being executed in a timely manner because a relatively large percentage of the overall volume in the stock is trading in a venue that is unavailable to the execution trader (such as a dark pool). For example, Unfortunately it looks like this ZVZZT is trading away from us in Liquidnet.

trading book The inventory of positions held by a particular broker/dealer primarily for short term trading purposes rather than for longer term investment.

trading buyer Describes a dealer who is officially indicating an interest in front ending an order from a large natural seller in order to lock in the balance of the order to work as a riskless (principal) transaction. For example, XYZ, I'm a trading buyer below the $50 level.

trading center Any exchange market maker, OTC market maker, alternative trading system, or national securities exchange.

trading costs The total cost of buying and selling securities. Includes commissions, spreads, markups/markdowns, and slippage.

trading curbs Temporary trading restrictions imposed by an exchange. Usually due to a significant price movement.

trading department The division of a firm charged with the buying and selling of securities.

trading desk 1. The department of a firm where the buying and selling of securities occurs, as in I hear John got a job on the trading desk at Morgan. 2. The personnel that work in a trading department, as in Call the trading desk and see what's going on in ZVZZT.

trading desk analyst An analyst at a broker/dealer that reports directly to the sales and trading department instead of the research department. Such an analyst does not officially publish research.

trading floor The physical area of a stock exchange or a broker/dealer dedicated to active trading. See also FLOOR.

trading forum A place where traders trade. May be a physically convened market or a distributed access market.

trading halt A temporary suspension of trading in a particular stock by an exchange. Usually due to an order imbalance or done in advance of a company news release.

trading on the perimeter Trading that occurs directly between floor brokers and floor traders in the crowd when the specialist is inaccessible due to heavy trading volume.

trading pool See pool.

trading post A structure on the floor of a stock exchange where the crowd gathers around a specialist to trade in a particular stock.

trading price The price at which a stock is actually trading. As opposed to a BID PRICE or an OFFER PRICE.

trading profit Gains derived from short term trading activities.

trading range The difference between the high and low prices during a specific time frame, as in The stock has been in fifty cent trading range for the past two hours.

trading room The physical area of a stock exchange or a broker/dealer dedicated specifically to trading.

trading sardines A Wall Street fairy tale. Some stocks can be likened to spoiled canned sardines. It is better to pass them along unopened to the next trader (for a profit) than to actually open the can and see how bad the spoilage might be. Therefore, they are trading sardines, not eating sardines. Many internet stocks in the 1990s could be called trading sardines.

trading securities Shares held intentionally for the short term.

trading seller Describes a dealer who is officially indicating an interest in front ending an order from a large natural buyer in order to lock in the balance of the order to work as a riskless (principal) transaction. For example, ZVZZT, I'm going to be out as a trading seller all morning to see if we can get involved.

trading session The period of time from the official open to the official close of trading on an organized exchange. Constitutes one day of trading for the exchange.

trading symbol See TICKER SYMBOL.

trading unit The standardized number of shares required to be bundled together in order be considered a acceptable trading quantity on an exchange. Usually 100 shares.

trading volume The total number of shares traded during a particular period of time, as in Trading volume was higher yesterday following several lackluster sessions.

traffic Trader's lingo meaning "participate in trading activity." Usually implies trading on behalf of customers. For example, ZVZZT, I haven't really trafficked in that name in a while.

trailer A small speculator who emulates the trades of larger market participants.

trailing stop order A stop order to sell (or buy) a stock in which the stop price is cancelled and replaced at progressively higher (or lower) prices as the stock price increases (or decreases).

transaction A completed bargain between a buyer and a seller.

transaction cost analysis (TCA) An analytic method used to measure the quality of an execution.

transaction cost spread component An academic term for the portion of a particular dealer's bid/asked spread that exists to compensate the dealer for the normal costs of doing business. Also known as the transitory spread component. See also ADVERSE SELECTION SPREAD COMPONENT.

transaction costs The total costs associated with completing a trade. In general, includes time, money, and effort. More specifically, includes commissions, markups/markdowns, fees, direct taxes, delivery costs, spreads, and slippage.

transfer The act of changing ownership of shares from one party to another.

transfer agent A agent appointed by a company to maintain their stock ownership records as well as to issue and cancel stock certificates.

transitory spread component An academic term for the portion of a particular dealer's bid/asked spread that exists to compensate the dealer for the normal costs of doing business. Also known as the transaction cost spread component. See also ADVERSE SELECTION SPREAD COMPONENT.

transitory volatility An academic term for volatility that is due to the trading activity of UNIFORMED TRADERS. In contrast to FUNDAMENTAL VOLATILITY.

transparent market A market that makes timely and accurate trading information readily available to the public.

traps Industry slang for worthless securities.

travel, to Trader's lingo meaning "for sale." For example, ZVZZT, I have 100,000 to travel at $25. Also known as to go.

treat me subject Trader's jargon meaning "my stated quote is not firm." Such a quote is subject to additional confirmation with a customer, further negotiation, or to outright cancellation due to changes in market conditions. For example, XYZ, that's a nice bid for 50,000, but I need to check with my PM. --- Okay, treat me subject on my bid then.

trend The general direction of prices. For example, Just remember what they say, the trend is your friend.

trend reversal A change in the prevailing trend. Also known simply as a reversal.

TRF An abbreviation of Trade Reporting Facility.

trim To reduce exposure, as in I think I'm going to trim my XYZ position a little in front of the earnings print.

triple witching day The day on which a triple witching hour occurs.

triple witching hour The last hour of the official trading session of the major stock exchanges on a day in which stock index futures contracts, stock index options contracts, and individual stock option contracts all expire simultaneously. The last hour of trading is therefore often marked by abnormally high volume and volatility.

trough The lowest point in a downward price move, as in I really think we may have seen the trough last week, and now we're headed higher.

turkey 1. Any unprofitable trade. 2. A stock that unexpectedly drops in price. 3. An investment that was once viewed as successful but that has subsequently soured.

turn 1. A reversal. 2. A complete transaction that has been opened and closed.

turn it off Trader's jargon meaning "I have no further trading interest, so you do not need to provide me with updates." For example, XYZ, we catch 25,000 to buy. I know you were a buyer yesterday. --- Yeah, we're full. You can turn it off. Opposite of KEEP ME UP.

turned over Closed a position.

turnover 1. A synonym for volume, as in Turnover on the New York Stock exchange reached two billion shares yesterday. 2. For the markets, means overall trading volume as a percentage of total shares outstanding during a specific time period. 3. For an institutional investor, means the total dollar amount of trades as a percentage of total portfolio assets.

TWAP order An abbreviation of time weighted average price order.

twisting the shorts Squeezing short sellers by carrying up stock through manipulative methods. For example, It looks like the Commodore is really twisting the shorts this time. There may be a few guys that get wiped out by the end of this campaign.

two dollar broker Another term for an independent FLOOR BROKER. Term derives from the time when such floor brokers charged a flat rate of $2.00 per hundred shares executed (or $0.02/ share). See also COMMISSION HOUSE BROKER.

two sided market A market in which both firm bids and firm offers are quoted.

two way market A quote that contains both a firm bid and a firm offer. For example, ZVZZT, make me a two way market for 50,000 shares please. --- Sure, I'll make it $25 1/4-3/8, 50,000 up.

two ways, better buyer Dealer expression used to indicate possession of natural order flow or indications of interest on both the buy side and the sell side in a particular stock. However, at that particular moment, interest on the buy side is greater than on the sell side due to relative order size or level of aggressiveness. For example, XYZ, we trade 50,000 at a quarter, come out two ways, better buyer.

two ways, better seller Dealer expression used to indicate possession of natural order flow or indications of interest on both the buy side and the sell side in a particular stock. However, at that at that particular moment, interest on the sell side is greater than on the buy side due to relative order size or level of aggressiveness. For example, ZVZZT, we've traded 100,000 on the day. Right now we're in touch with two ways, better seller.