Active Trading FAQs

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

  2. How does leverage work in the forex market?

  3. Why do futures' prices converge upon spot prices during the delivery month?

  4. What is a GTEM order?

  5. What do the different colored candlesticks mean?

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

  7. What are elves?

  8. What qualifies a person as a day trader?

  9. Is it important to check the professional history of my investment advisor?

  10. What requirements must a company meet for options to be traded on its stock?

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

  12. 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?

  13. I have several jobs. Can I contribute the maximum to multiple employer retirement plans?

  14. How do restricted stocks, treasury stocks and stock appreciation rights benefit employees?

  15. What is the difference between leverage and margin?

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

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

  18. Which is better for tax deductions, itemization or a standard deduction?

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

  20. As a temporary resident of the US, can I withdraw funds from my Traditional IRA without penalty when I leave the country?

  21. My company is the trustee of our 401k plan (which has 112 participants). What are the pros and cons of having the company instead of the plan provider/vendor as the trustee?

  22. What exactly is a company's float?

  23. What is the weighted average of outstanding shares? How is it calculated?

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

  25. 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?

  26. What are the disadvantages of using net present value as an investment criterion?

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

  28. Why do options with the same underlying stock and strike prices trade for different amounts?

  29. How do I receive sponsorship from a member firm in order to write a Series 7 exam?

  30. Is scalping a viable forex trading strategy?

  31. I overcontributed to my 401(k). What are my options?

  32. I converted my former IRA to a Roth for tax purposes in 1998, so even though the tax was paid over four years, am I correct to assume that this is now mine to withdraw, if I like, at no penalty? I am 60 years old.

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

  34. How are moving averages used in trading?

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

  36. How can I find out which stocks also trade as options?

  37. How does leverage affect pip value?

  38. How do you calculate the cost basis for a mutual fund over an extended time period?

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

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

  41. What types of accounts are available for forex trading?

  42. How can I buy oil as an investment?

  43. Why should I invest?

  44. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any tax penalties and liquidation of current positions held in this account?

  45. Does the seller (the writer) of an option determine the details of the option contract?

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

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

  48. Do I own a stock as of the trade date or the settlement date?

  49. What does it mean when the shares in my account have been liquidated?

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

  51. What effect does a company's dividend reinvestment plan have on its stock price?

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

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

  54. What are managed futures?

  55. What does it mean to have "dry powder"?

  56. What are some of the features and benefits of SEP IRAs and Roth IRAs?

  57. What does "buy and hold" mean?

  58. What do all of the letters in a stock option ticker symbol mean?

  59. I own shares of a company that just received a delisting notice from Nasdaq. Does this mean I will lose my shares?

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

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

  62. How does a stop-loss order work, and what price is used to trigger the order?

  63. What risks do organizations face when engaging in international finance activities?

  64. What will happen to my SEP IRA if I leave my current employer?

  65. I've noticed executives buy a lot of stock below market value, and then they sell it for a large gain. How can they do this?

  66. I just opened an IRA. What can I do to help my money grow?

  67. What is a gatekeeper?

  68. I do not want to totally get out of my retirement 401(k), but I want to take 72(t) distributions. What should I consider?

  69. How do I go about opening up a Roth IRA?

  70. What does it mean to use technical divergence in trading?

  71. Why does my broker allow me to enter only day orders for short selling?

  72. I want to invest in equities, but I don't have much money. Is there a minimum number of shares I must buy?

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

  74. When does one sell a put option, and when does one sell a call option?

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

  76. What is options backdating?

  77. How is the Parabolic SAR used in trading?

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

  79. Can I leave my pension to my spouse when I pass away?

  80. What does negative shareholder equity on a balance sheet mean?

  81. What is a margin account?

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

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

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

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

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

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

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

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

  90. What is authorized stock?

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

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

  93. What was "Operation Wooden Nickel"?

  94. What is the chaos theory?

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

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

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

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

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

  100. Is finance an art or a science?

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