The ax (or sharpening the ax) is the merchant's interest in buying or selling securities that are usually already on his books. When a trader is tall but has long-term concerns, it may be important for him to choose a put option in the future. Similarly, if a trader is at risk of rising interest rates, he may have an ax to avoid that risk. Often, an ax trader will keep this information secret because if other market participants know their motives, they can take advantage of this information to offer unprofitable trades or reject some trades. Take advantage of the situation.
- The ax (or polishing ax) is the merchant's interest in buying or selling securities that are usually already on his books.
- The ax used to be used to compare fixed income bonds, but now includes all bonds.
- The term is often used in conversations to speculate about a trader's own bond plans.
Meanings of Axe
A wood-cutting tool, usually iron with a steel tip and wooden handle.
A musical instrument used in folk or jazz music, especially a guitar or (actually) a sex phone.
Cancel, cancel or stop abruptly and without mercy.
Cutting or beating with an ax, especially violent or destructive.
Sentences of Axe
I started swinging my ax on the pieces of draft wood.
The company lost 125 jobs.
Mahogany panels were cut with an ax.
Synonyms of Axe
discontinue, dump, cut, give someone notice, dismiss, adze, give someone the bullet, tomahawk, cancel, drop, give someone their cards, kick out, sack, show someone the door, junk, terminate, give something the chop, hatchet, battleaxe, discharge, end, put an end to, cleaver