What is a "deep float?"

Dear Peeps,

What is a "deep float?" Is this some kind of financial skin flick?

I had a conversation today with an experienced guy and he used the term, but I didn't know what it meant.

Thanks,
Keith

 

context of conversation?

 

I will give you a scenario.
You have bought a share of a company at $100. After a year, it went to $10.
This is called a 'deep float' where your position is still floating (not closed), but at the extreme negative side (loss).

EDIT: you do not want to close it to take the loss, instead you will wait for it to appreciate before closing the position, possibly to the profit side (>$100).

 

Never heard the term.

 

it is an insurance not a stock brokerage term. the meaning then becomes obvious.

 

I will refrain from making an obvious joke here...

 

Thank you!

Go for it! We can handle it!!!

 

"Float" is an insurance term, means money comes in interest free from insurance premiums and then gets invested in stocks, bonds etc IE you use income/ money from one business to finance another....
I have not heard of "deep float" sounds like "deep throat" from Watergate. Deep Throat is the pseudonym given to the secret informant who provided information toBob WoodwardandCarl Bernsteinof The Washington Post in 1972 about the involvement of U.S.President Richard Nixon's administration in what came to be known as the Watergate scandal.

 

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