Options And Futures FAQs

  1. What's the best way to play backwardation in the futures market?

  2. What's the difference between binary options and day trading?

  3. If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

  4. Is there ever a bad time to invest in gold?

  5. Where can I purchase options?

  6. How can I invest in a foreign exchange market?

  7. What is a derivative?

  8. What is the hard-to-borrow list?

  9. How does margin trading in the forex market work?

  10. What is the difference between trading currency futures and spot FX?

  11. Is it possible to trade forex options?

  12. I want to start buying stocks. Where do I start?

  13. What should I look for when choosing a forex trading platform?

  14. What is the difference between LIBOR, LIBID and LIMEAN?

  15. How much money do I need to start trading?

  16. What is the difference between the bond market and the stock market?

  17. What is the difference between an options contract and a futures contract?

  18. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  19. What is a "wash sale"?

  20. What are the requirements to be able to contribute to an HSA?

  21. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  22. What are some common hand signals on the trading floor?

  23. Is life insurance good for mortgage protection?

  24. Why is Game Theory useful in business?

  25. What are the differences between AMEX and Nasdaq?

  26. What are the distribution options for an inherited annuity?

  27. What is a call rule?

  28. My variable annuity account took a beating. Should I seek other alternatives?

  29. Why would you want a monthly benefit versus a daily benefit?

  30. Who set the record loss for "rogue traders"?

  31. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  32. Which of the following BEST describes tax treatment of a long option that expires without exercise?

  33. What is the difference between systemic risk and systematic risk?

  34. Which is TRUE about Treasury bond futures?

  35. How do I employ a cash-and-carry trade?

  36. What are all of the securities markets in the U.S.A?

  37. What does it mean when futures prices are in contango?

  38. Which insurance policies do I really need?

  39. What is an unregistered mutual fund?

  40. Is it possible to short sell real estate?

  41. A Straddle

  42. What is the gold standard?

  43. What is an alligator spread?

  44. What was the Gold Reserve Act?

  45. All of these apply to an option exercise notice EXCEPT:

  46. What is the difference between return on equity and return on capital?

  47. What does it mean when advertisers say that "financing is available"? Should I trust them to give me a good deal?

  48. What is the salad oil scandal?

  49. What is a wild-card play?

  50. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  51. What is a vest fleece?

  52. What's the difference between a mutual fund and a hedge fund?

  53. Is it important to check the professional history of my investment advisor?

  54. What do all of the letters in a stock option ticker symbol mean?

  55. I want to invest in equities, but I don't have much money. Is there a minimum number of shares I must buy?

  56. When does one sell a put option, and when does one sell a call option?

  57. What methods can be used to fund a forex account?

  58. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

  59. Is it possible to take the Series 7 exam without being sponsored?

  60. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? From whom do I get these plans?

  61. My company is the trustee of our 401k plan (which has 112 participants). What are the pros and cons of having the company instead of the plan provider/vendor as the trustee?

  62. What's the difference between a straddle and a strangle?

  63. Should I buy options that are in the money or out of the money?

  64. How do you tell whether an option is American or European style?

  65. Can an option have a negative strike price?

  66. How many attempts at the Series 7 exam are permitted?

  67. I have a KSOP through my employer that I've invested 100% in company stock. I am now concerned that I'm not diversified and would like to move out of company stock and into mutual funds. Is this allowed with the funds I've contributed to the account?

  68. What kinds of investments are allowed in a qualified retirement plan, and what kinds are forbidden?

  69. I converted my former IRA to a Roth for tax purposes in 1998, so even though the tax was paid over four years, am I correct to assume that this is now mine to withdraw, if I like, at no penalty? I am 60 years old.

  70. Do hedge funds and mutual funds invest in commodities in high inflation environments?

  71. How do I measure option liquidity?

  72. How can I invest in gold?

  73. How do speculators profit from options?

  74. Do I need to take the Series 6 examination after I have already successfully completed the Series 7?

  75. How do I register for the CFA program for the first time?

  76. How can I buy oil as an investment?

  77. When you buy a stock in a company, does it necessarily mean that one of the shareholders is selling it to you?

  78. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any tax penalties and liquidation of current positions held in this account?

  79. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  80. Can I make money using put options when prices are going up?

  81. What is the difference between forward and futures contracts?

  82. What does it mean when a bond has a put option?

  83. I am not a resident of the United States, but would like to be qualified as a registered representative in the U.S. Is it still possible for me to write the Series 7 exam?

  84. What are the oldest mutual funds, by date of inception?

  85. As a temporary resident of the US, can I withdraw funds from my Traditional IRA without penalty when I leave the country?

  86. How do I go about opening up a Roth IRA?

  87. What is the difference between options and futures?

  88. My brokerage firm won't allow naked option positions. What does this mean?

  89. What is an evergreen provision and how does it affect shareholders?

  90. Why do futures' prices converge upon spot prices during the delivery month?

  91. Why do options with the same underlying stock and strike prices trade for different amounts?

  92. I overcontributed to my 401(k). What are my options?

  93. I own options on a stock, and it's just announced a split. What happens to my options?

  94. Is technical analysis used only to analyze stocks?

  95. What does the term "stock-for-stock" mean?

  96. What is the difference between hedging and speculation?

  97. How do you calculate the cost basis for a mutual fund over an extended time period?

  98. What will happen to my SEP IRA if I leave my current employer?

  99. How do I use a "basket" option?

  100. Why should I invest?

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