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Active Trading FAQs

  1. Why would my stock's value decline despite good news being released?

  2. Do noise traders have any long-term effect on stock prices?

  3. What do the different colored candlesticks mean?

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

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

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

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

  8. Would a slow stochastic be effective in day trading?

  9. How does leverage work in the forex market?

  10. What does "buy on the cannons, sell on the trumpets" mean?

  11. Can you place a stop-loss order on a mutual fund?

  12. What is the difference between options and futures?

  13. How can I hedge against rising diesel prices?

  14. What is the difference between a quote driven market and an order driven one?

  15. What is the difference between leverage and margin?

  16. Is it possible to buy mutual funds using a margin account?

  17. What qualifies a person as a day trader?

  18. Is technical analysis used only to analyze stocks?

  19. I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?

  20. What is the haircut rate imposed by clearing corporations?

  21. What do the bracketed numbers following a technical indicator mean?

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

  23. What is a gatekeeper?

  24. Use the following information about a customer’s margin account to answer the question.

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

  26. What is the difference between fast and slow stochastics in technical analysis?

  27. What technical tools can I use to measure momentum?

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

  29. How does leverage affect pip value?

  30. What is a GTEM order?

  31. How is margin interest calculated?

  32. Who is Mr. Copper?

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

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

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

  36. How are moving averages used in trading?

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

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

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

  40. How do I calculate forex pivot points?

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

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

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

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

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

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

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

  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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