verb General Slang

Bleed

· verb · finance

Slow steady erosion of P&L, premium or capital.

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Definitions

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Slow constant loss rather than a single blow-up. Long-vol books bleed theta every day the market doesn't move; a fund with bad fundraising bleeds AUM month after month. Death by a thousand cuts, not a margin call.

“Long gamma book bleeds about 40k a day in a dead tape.”
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Bleed In A Sentence

Long gamma book bleeds about 40k a day in a dead tape.

Origin & Usage

Variants bleeding

People Also Ask

What does 'bleed' mean in trading?

In finance, to 'bleed' is to slowly and steadily lose P&L, premium, or capital over time.

How do you use 'bleed' in a sentence?

A trader might say, 'This position bleeds a little premium every day it sits open.'

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