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Active Trading FAQs

  1. What is a GTEM order?

  2. How is margin interest calculated?

  3. Who is Mr. Copper?

  4. Margin accounts are established to allow investors the ability to use leverage with their investments.

  5. Where did the bull and bear market get their names?

  6. What's the difference between a regular option and an exotic option?

  7. How are moving averages used in trading?

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

  9. I want to try short selling, but how can I sell something that I don't own?

  10. What is a virtual trailing stop order (VTSO)?

  11. How do I calculate forex pivot points?

  12. How are the interest charges calculated on my margin account?

  13. Can a stop-loss order be used to protect a short sale transaction?

  14. What are the components of the risk premium for investments?

  15. Do stop or limit orders protect you against gaps in a stock's price?

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

  17. Does a strong trend (ADX > = 40) cause an increase in volatility?

  18. What are the advantages of using a mini forex account for trading?

  19. 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?

  20. Why do you need a margin account to short sell stocks?

  21. What is the difference between a simple moving average and an exponential moving average?

  22. Why won't my broker allow me to sell one stock and buy another on the same day?

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

  24. Why do people say that September is the worst month for investing?

  25. What is the best method of analysis for forex trading?

  26. How does pyramiding work?

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

  28. Does the party loaning shares in a short sale transaction benefit in any way other than from the interest earned on the loan?

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

  30. Is tracking error a significant measure for determining ex-post risk?

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

  32. How is the Parabolic SAR used in trading?

  33. Is scalping a viable forex trading strategy?

  34. What is a Bermuda swaption?

  35. What does "buy and hold" mean?

  36. What are the minimum margin requirements for a short sale account?

  37. Is finance an art or a science?

  38. 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?

  39. Can an option have a negative strike price?

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

  41. What are managed futures?

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

  43. In the forex market, how is the closing price of a currency pair determined?

  44. How do I measure option liquidity?

  45. Where can I find information about pre- and after-hours trading on the NYSE and the Nasdaq?

  46. How do speculators profit from options?

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

  48. What is the homo economicus?

  49. What does it mean to book the basis?

  50. Which statements about fill-or-kill orders are FALSE?

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Last Questions Asked:
  1.

    What happens if I cannot pay a margin call?

  2. How do I start using technical analysis?

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

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