Active Trading FAQs
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What happens if I cannot pay a margin call?
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How do I start using technical analysis?
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How does margin trading in the forex market work?
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What does it mean when there is "price action"?
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What are the rules for placing stop and limit orders in forex?
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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?
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Why can't I enter two sell orders on the same stock?
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Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?
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How much money do I need to start trading?
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Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company?
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What is the difference between an options contract and a futures contract?
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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?
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Why is Game Theory useful in business?
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Do stimulus checks work?
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What is the McGinley Dynamic?
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What's the difference between consumer confidence and consumer sentiment?
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Do stocks that trade with a large daily volume generally have less volatility?
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When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?
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How do I use the Nova/Ursa ratio?
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How do I employ a cash-and-carry trade?
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What does "gather in the stops" mean?
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What happens to a stop order after a stock splits?
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What is high-frequency trading?
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A Straddle
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What is "hammering"?
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Given the below information, all of the following statements are FALSE regarding this existing margin account EXCEPT:
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What is the Coppock curve?
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What is the difference between return on equity and return on capital?
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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?
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How do I use a premium put convertible?
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If everyone is selling in a bear market, does your broker have to buy your shares from you? If so, won't he be losing his shirt?
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Why do you need a margin account to short sell stocks?
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What is the difference between a simple moving average and an exponential moving average?
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Why won't my broker allow me to sell one stock and buy another on the same day?
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Why do some stock quotes appear in bold print in the newspaper?
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Why do people say that September is the worst month for investing?
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What is the best method of analysis for forex trading?
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How does pyramiding work?
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Are we in a bull market or a bear market?
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Does the party loaning shares in a short sale transaction benefit in any way other than from the interest earned on the loan?
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Should I buy options that are in the money or out of the money?
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Is tracking error a significant measure for determining ex-post risk?
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What are the risks of having both high operating leverage and high financial leverage?
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How is the Parabolic SAR used in trading?
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Is scalping a viable forex trading strategy?
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What is a Bermuda swaption?
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What does "buy and hold" mean?
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What are the minimum margin requirements for a short sale account?
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Is finance an art or a science?
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I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?
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Can an option have a negative strike price?
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What happens to my call options if the underlying company is bought out?
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What are managed futures?
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My broker just sold securities out of my account without my permission. Is this legal?
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In the forex market, how is the closing price of a currency pair determined?
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How do I measure option liquidity?
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Where can I find information about pre- and after-hours trading on the NYSE and the Nasdaq?
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How do speculators profit from options?
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How can I use market breadth to my advantage?
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What is late-day trading? Why is it any different from buying and selling stocks in the after-hours market?
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Why does my broker allow me to enter only day orders for short selling?
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Can I make money using put options when prices are going up?
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What does it mean when the shares in my account have been liquidated?
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How can I determine a stock's next resistance level or target price?
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Where do investors tend to put their money in a bear market?
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What is the "random walk theory" and what does it mean for investors?
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What is the cheapest, fastest way to research, buy and trade stock?
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My brokerage firm won't allow naked option positions. What does this mean?
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How does a stop-loss order work, and what price is used to trigger the order?
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What is the best time of the day to trade?
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How can a futures trader exit a position prior to expiration?
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What does it mean to have "dry powder"?
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Why do option volume quotes differ on different websites?
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How can a company trade more shares in one day than there are shares outstanding?
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What do the "BxA" numbers on my brokerage's trading screen mean?
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When does one sell a put option, and when does one sell a call option?
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What is relative strength?
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What do you call a candlestick with no shadows, and what does it mean?
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What do people mean when they say there is a "bubble" going on in the market, such as a "housing bubble" or a "technology bubble"?
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What does negative shareholder equity on a balance sheet mean?
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What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?
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Can technical analysis be called a self-fulfilling prophecy?
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What is the difference between a logarithmic price scale and a linear one?
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Where do I place my target when the price of a stock breaks out of a technical chart pattern?
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What do the numbers that follow the bid and ask numbers in stock quotes represent?
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Who or what are the turtles?
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How can I tell if I'm an emotional investor?
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What is the chaos theory?
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What's the difference between a stop and a limit order?
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What is Fibonacci retracement, and where do the ratios that are used come from?
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What methods can be used to measure and profit from investor sentiment?
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What is the put-call ratio and why should I pay attention to it?
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Why do futures' prices converge upon spot prices during the delivery month?
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Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?
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What are elves?
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How do investors "chase the market"? It this a bad thing?
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What is a margin account?
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What does it mean to use technical divergence in trading?
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What is the pitchfork indicator that I keep hearing about, and how do I use it?
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I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to it if it dips below $27, and I want to do all this in one trading order. What type of order should I use?
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