Acronym thread

Hi guys,

I thought it may be a good idea to create a sticky thread in this section which contains the meaning of acronyms.

I see so many thrown around the forums, either relating to economic terms (IRP, PPP, CPI, GDP etc), trading software (CMC, IB etc), market codes (SPI, DAX, etc) or exchanges (CBOT, SFE etc). Perhaps a thread where everyone can contribute the full name of the acronyms they use and a quick explanation, and then a list can be compiled would be a good idea. Perhaps when you use an acronym in a thread from now on, come back to this one and write up a quick explanation (if not already included). This way, it wont take up much of your time as its a do as you go process.

Makes it a lot easier for newbies or even experienced posters to then consult the acronym thread instead of reading posts and confusing the hell out of themselves (such as I do sometimes and as I am sure everyone else around here does at times).

Just a thought.

Cheers

Hi MRC
Most people have google running at the top of their screen and it is a simple matter to google any acronyms and 99% of them are answered, you may say that some people do not run google and the simple answer is they should, as if you put in the share code of any Australian share you will get the ASX website and the company website and more information about the company than any one person could possibly absorb

happyjack

Of course Yahoo and most other search engines have setups that will fit at the top of the screen. the only one that I have issues with is sensis which appears to censor the output, I have just checked it and it would appear that the worst excesses have been fixed up, (it could not find "google" or other competitors)

thanks MRC

Nick--

CMC - CMC Markets
CPI - Consumer Price Index
EFX - EFX Group
EV - Enterprise Value
EW - Elliot Wave
GDP - Gross Domestic Product
IB - Interactive Brokers
IG - IG Markets
IGV - In Ground Value
IR - Interest Rate
JORC - The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
MA - Moving Average
MMA - Multiple Moving Averages
PP - Pivot Points
ROI - Return on Investment
RR - Risk / Reward
SMSF - Self Managed Superannuation Fund

some common ones i've come across on ASF

I'll add a few

IOCG - Iron ore, copper, gold (sometimes IOCGU, uranium)
IRR - Internal rate of return
PPI - Producer price index
PPP - Purchasing power parity
SPI - Share price index

bvbfan said:

SPI - Share price index

Click to expand...

Is that right??

Trembling Hand said:

Is that right??

Click to expand...

Yeh that's what i have seen as well TH

Happy, I realise most people can consult Google and that is fine, it is why I assumed this thread would not kick off, as is the case. But still worth a look for some of the newbs. At least they can post questions if they do not understand, unlike if you read google and end up more confused than when you started. Its hard to find some simple information sometimes out there on the world wide web.

Here are a few I have used lately:

YM - Mini/sized Dow. The YM trades on CBOT (Chicago Board of Trade) until 5pm Eastern Time and reopens for trading just over 3 hours later at 8:15pm. The contract months are March (H), June (M), September (U) and December (Z). THe YM moves in increments of one point, which is worth $5 per contract. Margin is around $2,000. This contract trades nearly 24 hours, however traders genearlly focus on the cash market session from 9:30am to 4:15pm.

ES - E-mini S&P. The ES trades on CME (Chicargo Mercantile Exchange) until 4:15pm, and reopens 15 minutes later to start the next session. There is also a shutdown period from 5:30pm to 6pm. The contract months are the same as the YM. The ES moves in increments of 0.25 points, which equals $12.50 per contract or $50 for a full point move. Traders need around $2000 for margin. Most traders focus on cash hours, which are the same as the YM, despite the ES being open nearly 24 hours.

PPP - as bvb fan has stated, Purchasing Power Parity. If price discrepancies exist between price level in two different countries, their exchange rates will adjust to ensure prices equal. I.e. an increase in relative inflation in one country leads to a decrease in the countries currency. This is however, theoretical upto a point, as trade barriers, transport costs and differences in taxes can alter prices. Sometime inflation is not the driver, but the expectation of inflation.

IRP - Interest Rate Parity. If the interest rate on American bonds falls relative to the interest rate on Australian bonds, then the US currency will depreciate against the Australian dollar.

Both of these can be seen recently, with the US lowering interest rates, causing a depreciation of their dollar, and Australia targeting inflation, causing a relative increase in the Australian dollar (I realise there are more factors in play than these two on the AUD/USD, however this is the basic premise for beginners).

use your mod powers to cut and paste all the acronyms into the first post with a title or something. it may grow in time and stop them getting strewn over pages of posts.

disarray said:

use your mod powers to cut and paste all the acronyms into the first post with a title or something. it may grow in time and stop them getting strewn over pages of posts.

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I don't have any mod powers

But that was the idea. To collect a heap of acronyms and brief descriptions over time and then put them in alphabetical order for an easy checklist.

An example why this thread was created was the one I saw the other day on "Free carrying a stock", something that has been asked numerous times and has to keep being asked, whereas someone could easily come here and check it's meaning if unsure (which I am sure a majority of posters are). Saves everyone having to sort through internet pages of junk everytime they hear something and do not understand it.

Though, no doubt it will take years to compile a good and comprehensive list here, if everyone chips in a few acronyms with an easy to read description, we will well be on our way. This is not really for my benefit as I am familiar with most terms now, I just know how hard it is to read the forums at first, having another page open googling and sifting through sites everytime you are reading and an acronym or even a simple trading term pops up.

Thanks for the input Disarray.

Cheers

pm joe or something, maybe he can give you rights to manage the thread. i agree with the acronyms thing, i remember not having a clue about most of them when i was starting out and thinking a thread like this would be helpful.

disarray said:

i agree with the acronyms thing, i remember not having a clue about most of them when i was starting out and thinking a thread like this would be helpful.

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I'm with disarray - this thread is a FGI (Good Idea...)

In time it could become a sticky too.

POG - Price Of Gold
POO - Price Of Oil
ATM - (options) At The Money
ITM - In The Money
OTM - Ot of The Money
IV - Implied Volatility
HV or SV - Historical Volatility or Statistical Volatility (same thing)

A few for you to ponder.

PFS - Pre-Feasibility Study (the beginning or the end before it commences depending on outcome) Seeing directors buying at this point is a great sign.

DES - Definitive Engineering Study (you may also see this referred to as DFS)

BFS - Bankable Feasibility Study (get pased this and you are on the money)

EPCM - Engineering Procurement Construction Management (low risk fee based) Boring

EPC - Engineering Procurement Construction (high risk lump sum based) Exciting and dynamic

Thanks fellas.

IF you could provide a brief explanation (not just the word behind the acronym), it would be a great help.

Cheers

So what is "ADR form"? I can find "American Depositary Receipts (ADR) form" but no good explanation

johenmo said:

So what is "ADR form"? I can find "American Depositary Receipts (ADR) form" but no good explanation

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Good one.

I am unsure. I believe you have the right name behind the acronym, but I cannot explain them well for you.

Anybody else know and can explain?

I think this thread looks dead. Not really taking off.

I will add another while I am here:

IB - Interactive Brokers. This is a trading platform, whereby you can buy and sell a multitude of investment vehicles. From options, futures, bonds, equities (stocks). It offers extremelly low commissions, real-time data and a vast array of order types. The charting is ordinary, so you will need to connect charting software such as amibroker or metastock. Disarray has a link above.

www.investopedia.com for anything else... I use it all the time. Its great.

ADR - Basically a holding Bank buys/holds the underlying stock and issues ADR's at a ratio in the US

So Lihir I think trades as an ADR where an ADR buys equivalent of 10 Lihir shares.

Rio Tinto is at 4 to 1
BHP 2 to 1

I think you can convert the ADR's to local holdings.

Bank of New York Mellon does a lot of the ADR issues and custodian services

http://www.adrbny.com/home_dr.jsp

EBITA = which means we really do not want to tell how much we will lose this year and will leave it to you to figure out.

Earnings before interest, tax and amortisation.