Active Trading FAQs
-
Is tracking error a significant measure for determining ex-post risk?
-
What are the risks of having both high operating leverage and high financial leverage?
-
How is the Parabolic SAR used in trading?
-
Is scalping a viable forex trading strategy?
-
What is a Bermuda swaption?
-
What does "buy and hold" mean?
-
What are the minimum margin requirements for a short sale account?
-
Is finance an art or a science?
-
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?
-
Can an option have a negative strike price?
-
What happens to my call options if the underlying company is bought out?
-
What are managed futures?
-
My broker just sold securities out of my account without my permission. Is this legal?
-
In the forex market, how is the closing price of a currency pair determined?
-
How do I measure option liquidity?
-
Where can I find information about pre- and after-hours trading on the NYSE and the Nasdaq?
-
How do speculators profit from options?
-
How can I use market breadth to my advantage?
-
What is late-day trading? Why is it any different from buying and selling stocks in the after-hours market?
-
Why does my broker allow me to enter only day orders for short selling?
-
Can I make money using put options when prices are going up?
-
What does it mean when the shares in my account have been liquidated?
-
How can I determine a stock's next resistance level or target price?
-
Where do investors tend to put their money in a bear market?
-
What is the "random walk theory" and what does it mean for investors?
-
What is the cheapest, fastest way to research, buy and trade stock?
-
My brokerage firm won't allow naked option positions. What does this mean?
-
How does a stop-loss order work, and what price is used to trigger the order?
-
What is the best time of the day to trade?
-
How can a futures trader exit a position prior to expiration?
-
What does it mean to have "dry powder"?
-
Why do option volume quotes differ on different websites?
-
How can a company trade more shares in one day than there are shares outstanding?
-
What do the "BxA" numbers on my brokerage's trading screen mean?
-
When does one sell a put option, and when does one sell a call option?
-
What is relative strength?
-
What do you call a candlestick with no shadows, and what does it mean?
-
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"?
-
What does negative shareholder equity on a balance sheet mean?
-
What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?
-
Can technical analysis be called a self-fulfilling prophecy?
-
What is the difference between a logarithmic price scale and a linear one?
-
Where do I place my target when the price of a stock breaks out of a technical chart pattern?
-
What do the numbers that follow the bid and ask numbers in stock quotes represent?
-
Who or what are the turtles?
-
How can I tell if I'm an emotional investor?
-
What is the chaos theory?
-
What is the homo economicus?
-
What does it mean to book the basis?
-
Which statements about fill-or-kill orders are FALSE?
Free Annual Reports