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 are the requirements to be able to contribute to an HSA?

  20. What is a "wash sale"?

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

  22. 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?

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

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

  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 number of shares determines adequate liquidity for a stock?

  53. What is after-hours trading? Am I able to trade at this time?

  54. I own shares of a company that just received a delisting notice from Nasdaq. Does this mean I will lose my shares?

  55. I am in the second year of taking SEPP distributions from my IRA. Can I transfer some of the funds to a new IRA with different investment options?

  56. How does leverage work in the forex market?

  57. Who sets the price of commodities?

  58. Who or what are the turtles?

  59. Can I leave my pension to my spouse when I pass away?

  60. What is the difference between a Keogh and an IRA?

  61. What's the difference between "top-down" and "bottom-up" investing?

  62. What is the incentive to buy a stock without dividends?

  63. What requirements must a company meet for options to be traded on its stock?

  64. I made involuntary contributions to a retirement plan while temporarily employed. Can I withdraw these funds without penalty?

  65. How many types of markets can an investor choose from?

  66. What is the difference between leverage and margin?

  67. What does "squeezing the shorts" mean?

  68. Which is better for tax deductions, itemization or a standard deduction?

  69. What is variable life insurance?

  70. What is earnings management?

  71. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

  72. What exactly is a company's float?

  73. Short selling vs. purchasing a put option: how do the payoffs differ?

  74. How is a put option exercised?

  75. What is the difference between open-market and closed-market transactions?

  76. How do I receive sponsorship from a member firm in order to write a Series 7 exam?

  77. How are stock warrants different from stock options?

  78. What is market capitulation?

  79. I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?

  80. I make over $100,000/yr and my adjusted gross income precludes standard IRA contributions. My contributions to my 401(k) plan at work are limited to about $7,000/yr. It seems I'm being penalized for my income. Are there other retirement savings options av

  81. How do restricted stocks, treasury stocks and stock appreciation rights benefit employees?

  82. Why can't I have fixed rollover costs in forex?

  83. Why are corporations so concerned about their stock price?

  84. I've noticed executives buy a lot of stock below market value, and then they sell it for a large gain. How can they do this?

  85. How does pyramiding work?

  86. What does "in street name" mean, and why are securities held this way?

  87. Are we in a bull market or a bear market?

  88. What's the difference between absolute P/E ratio and relative P/E ratio?

  89. If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70.5, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70.5?

  90. What are the disadvantages of using net present value as an investment criterion?

  91. Are eurodollars related to the currency called the euro?

  92. At what point in the ordering process does a broker charge commission?

  93. Where does the name "Wall Street" come from?

  94. How does somebody make money short selling?

  95. Does the seller (the writer) of an option determine the details of the option contract?

  96. How can I hedge against rising diesel prices?

  97. How can I find out which stocks also trade as options?

  98. What risks do organizations face when engaging in international finance activities?

  99. How does the ISIN numbering system work?

  100. What is the difference between Series 9/10 and Series 24 qualification exams?

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