Desk Slang · Core
Priced In
Priced in means the event or path is already in the forwards, the curve, or the multiple — so the announcement is not new information unless it surprises that path.
Definition
A 25 bp hike that matches OIS is priced in. A ‘strong’ NFP that matches the whisper is priced in. The P&L is in the surprise versus the implied distribution, not versus last month’s newspaper.
Why it matters
Desks that trade headlines instead of surprises donate money to people who read the strip.
Case
A Fed that delivers exactly the dots the market had for six weeks can still move the tape if the press-conference adjective was not priced. The rate was in; the reaction function was not.
How to read it
Read the strip, the skew, and the whisper — not the ‘expected’ print on a TV bug, which is often stale.
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