Mine and Yours: Meaning and Function

What Does Mine and Yours Mean?

The terms "mine" and "yours" were part of the trading jargon used by traders and brokers to signal preferences for buying and selling securities on the trading floor. "Mine" indicated a buy order, while "yours" showed a desire to sell. These terms were commonly used in the open outcry system and in voice markets, including the foreign exchange market.

Key Takeaways

• Traders and brokers used jargon to convey trading information, intentions, and acceptances.
• "Mine" and "yours" were trading terms indicating buying and selling preferences.
• These terms originated from open outcry pit trading and are still prevalent in forex markets.
• "Buy ’em" and "sold" were also frequently used on the trading floor.
• Forex traders have developed a specific lingua franca to facilitate efficient and clear trades due to the complexity of transactions.

Understanding Mine and Yours

Before electronic trading, open outcry floor pits were the primary venues for stock markets. Traders and brokers would compete and trade with each other based on orders. "Mine" and "yours" were spoken cues to quickly communicate buying and selling intentions. "Buy ’em" and "sold" were also commonly used.

For example, a dealer in the interbank market would say or type "mine" to express their desire to buy a specific currency. If they decided to sell, they would say "yours," indicating that the order was available for purchase. Similarly, a floor broker could shout "mine" to signal the intent to buy when a market maker offered 100 call options at $1.00.

These terms were designed for quick comprehension, facilitating fast and accurate transactions in a chaotic and fast-moving market.

Special Considerations

The terms "mine" and "yours" are still commonly used today, particularly in currency markets, in the same context as in the open outcry system. The foreign exchange (forex) market is a highly liquid market where individuals, corporations, institutions, and governments trade currencies.

Forex transactions primarily occur online and heavily rely on leverage due to minimal day-to-day fluctuations in currency values. Consequently, high trading volumes are common.

Given the complexity and scope of forex transactions, traders have developed a specialized lingo to ensure efficiency and clarity in trades.

The foreign exchange market is known for its extensive list of specific terminology.

Other Jargon in Forex

While the terms "mine" and "yours" are relatable, forex traders utilize a wide range of unique and creative slang. Here are a few other commonly used terms among forex traders:

• A bid is the exchange rate at which a buyer intends to purchase the base currency in a currency pair.
• An offer represents the exchange rate at which a seller intends to sell the base currency in a currency pair.
• Going long refers to buying a currency product with the expectation of its value increasing.
• Going short involves selling first and buying later, anticipating a price decrease.
• BTFD means "buy the (expletive) dip" and involves purchasing an asset after a price decline.
• Footsie refers to the Financial Times-Stock Exchange 100 Share Index (FTSE 100).
• Pari-passu is a Latin expression meaning "on equal footing," which relates to bondholders sharing equal rights in a debt restructuring process.
• Thin describes a market with less liquidity than expected.
• Yard denotes a billion and offers a concise way to express a figure without confusion with million or trillion.