Active Trading FAQs

  1. What trends and data influence after-hours traders the most?

  2. What are some common traits of undervalued stocks?

  3. What are the best indicators for evaluating technology stocks?

  4. What technical indicators can I use to find undervalued stock?

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

  6. What's the difference between Chaikin Money Flow (CMF) and Money Flow Index (MFI)?

  7. What's the difference between on-balance volume (OBV) and accumulation/distribution?

  8. What's the difference between moving average and weighted moving average?

  9. What's the difference between Bollinger Bands® and Keltner Channels?

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

  11. What happens if I cannot pay a margin call?

  12. How do I start using technical analysis?

  13. Where can I purchase options?

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

  15. What is a derivative?

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

  17. What does it mean when there is "price action"?

  18. Is it possible to trade forex options?

  19. What are the rules for placing stop and limit orders in forex?

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

  21. I don't understand how a stock has a trading price of 5.97, but when I buy it I have to pay the asking price of 6.04. How can I be paying more than what the stock is trading for?

  22. Why can't I enter two sell orders on the same stock?

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

  24. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

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

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

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

  28. Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company?

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

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

  31. What is a "wash sale"?

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

  33. 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?

  34. Is life insurance good for mortgage protection?

  35. Why is Game Theory useful in business?

  36. What are the differences between AMEX and Nasdaq?

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

  38. Do stimulus checks work?

  39. What is the McGinley Dynamic?

  40. What's the difference between consumer confidence and consumer sentiment?

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

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

  43. Do stocks that trade with a large daily volume generally have less volatility?

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

  45. How do I use the Nova/Ursa ratio?

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

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

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

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

  50. What does "gather in the stops" mean?

  51. Which insurance policies do I really need?

  52. What happens to a stop order after a stock splits?

  53. What is an unregistered mutual fund?

  54. What is high-frequency trading?

  55. Is it possible to short sell real estate?

  56. A Straddle

  57. What is an alligator spread?

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

  59. What is "hammering"?

  60. Given the below information, all of the following statements are FALSE regarding this existing margin account EXCEPT:

  61. What is the Coppock curve?

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

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

  64. A customer has the following in his long margin account. Market value: $18,000, debit balance: $10,000 and SMA: $2,000. How much of the SMA may be used to purchase additional securities?

  65. How do I use a premium put convertible?

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

  67. What is a vest fleece?

  68. What is a margin account?

  69. What number of shares determines adequate liquidity for a stock?

  70. My broker just sold securities out of my account without my permission. Is this legal?

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

  72. What is the cheapest, fastest way to research, buy and trade stock?

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

  74. How long does a stock that has done a reverse split keep the letter "D" at the end of its symbol?

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

  76. Why do some stock quotes appear in bold print in the newspaper?

  77. What is authorized stock?

  78. What happens to my call options if the underlying company is bought out?

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

  80. What was "Operation Wooden Nickel"?

  81. What is the chaos theory?

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

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

  84. What is late-day trading? Why is it any different from buying and selling stocks in the after-hours market?

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

  86. How can a company trade more shares in one day than there are shares outstanding?

  87. Is finance an art or a science?

  88. How is spread calculated when trading in the forex market?

  89. How can I invest in gold?

  90. What are the risks of having both high operating leverage and high financial leverage?

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

  92. How can I use market breadth to my advantage?

  93. How is margin interest calculated?

  94. What is the "random walk theory" and what does it mean for investors?

  95. Why was Microsoft subject to antitrust charges in 1998?

  96. How do investors "chase the market"? It this a bad thing?

  97. What is earnings management?

  98. What is the difference between fundamental and technical analysis?

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

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

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