Axe

Filed Under »
Dictionary Says

Definition of 'Axe'

The interest that a person or trader shows in buying or selling a financial security. There are many reasons why someone would have a particular interest in a security. If a trader holds a long position but has short-term concerns, that trader's "axe" toward short-term put options may be significant. Also used as a colloquial expression to indicate job cuts or layoffs.
Investopedia Says

Investopedia explains 'Axe'

The term "axe" may be derived from the phrase "axe to grind," which means to possess an ulterior motive or selfish aim. For example, consider a situation where trader A has a large position in a stock, and other market participants have no knowledge of this trader's position. If trader A shops around for quotes with the intention of unloading part, or all, of his or her long position, trader B, who makes a price quote to trader A, would be at a disadvantage if he or she is unaware that trader A has an axe with regard to this specific stock.

Articles Of Interest

  1.

    The Advantages Of Bonds

    Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment.

  2. How Brokers Can Avoid A Market-Maker's Tricks

    Ensure that you and your clients are getting the best deal by avoiding these three pitfalls.

  3. Bond Basics Tutorial

    Investing in bonds - What are they, and do they belong in your portfolio?

  4. 6 Asset Allocation Strategies That Work

    Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.

  5. American Vs. European Options

    These two options have many similar characteristics, but it's the differences that are important.

  6. Pay Attention To The Proxy Statement

    Don't overlook this overview of a company's well-being.

  7. How Risk Free Is The Risk-Free Rate Of Return?

    This rate is rarely questioned - unless the economy falls into disarray.

  8. An Introduction To Gamma-Delta Neutral Option Spreads

    Find the middle ground between conservative and high-risk option strategies.

  9. Shopping For A Financial Advisor

    Finding your perfect advisor is as simple as shopping for a car. Read on to learn more.

  10. Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center