Active Trading FAQs

  1. What is the difference between a banker's acceptance and a post-dated check?

  2. What is the average return on equity for a company in the electronics sector?

  3. How can a business eliminate deadweight loss from government regulation?

  4. What are the benefits and shortfalls of the Herfindahl-Hirschman Index?

  5. When is a bond's coupon rate and yield to maturity the same?

  6. What is the difference between a copay and a deductible?

  7. How can I calculate a company's forward p/e in Excel?

  8. What are some examples of horizontal integration?

  9. How do unfunded capital expenditures and distributions affect the fixed charge coverage ...

  10. How can I apply sensitivity analysis to my investment decisions?

  11. How does debt affect a company's beta?

  12. What is the average debt/equity ratio for the Internet sector?

  13. Why are coupon payments considered an annuity?

  14. How should a risk-averse investor build a retirement portfolio?

  15. Why is a company's diluted EPS always lower than its simple EPS?

  16. What is the difference between earnings per share (EPS) and diluted EPS?

  17. How do I change my strike price once the trade has been placed already?

  18. What happens when a security reaches its strike price?

  19. What are the most popular and useful measures of credit spread?

  20. In the context of a startup, what is sustainable growth?

  21. How can I evaluate if a stock is a short squeeze?

  22. How can I use simple moving averages to swing trade?

  23. How can I use simple moving averages to signal when to buy or sell stocks?

  24. How does days to cover a short position relate to a short squeeze?

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

  26. Is it better practice to use a stop order or a limit order?

  27. Are simple moving averages backward or forward looking?

  28. Are stop orders only used for stocks?

  29. What securities can I use to engage in speculation of an asset while limiting my ...

  30. How can I generate a yield from stocks in the Internet sector that do not pay a dividend?

  31. What does passing the Series 6 enable me to do?

  32. What are the benefits of using open interest as an indicator?

  33. How can I manage the three possible sources of business risk?

  34. How can I profit from a decline of stock prices in the insurance sector?

  35. What is the difference between open interest and volume?

  36. What does a rising open interest on a stock signal?

  37. How is the spot price related to a derivative's notional value?

  38. What options strategies are best suited for investing in the chemicals sector?

  39. Why are growth investors attracted to the chemicals sector?

  40. Which stage of the economic cycle is most favorable for the chemicals sector?

  41. What are some common markets where notional value is used?

  42. How does fundamental analysis differ from technical analysis?

  43. How does holding period return yield differ between short and long positions in the ...

  44. What is the difference between a buy limit and a sell stop order?

  45. How is a leveraged buyout different from a buyout?

  46. What risks are associated with a closed end investment?

  47. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

  48. How does operating leverage affect business risk?

  49. What are the benefits of investing in a cyclical stock?

  50. What options strategies are commonly used for investing in the electronics sector?

  51. Why would growth investors be attracted to the electronics sector?

  52. How can I calculate degree of operating leverage on Excel?

  53. How is the Dow Jones Industrial Average used in the Dow theory?

  54. How do day traders capture profits from the difference between bid and ask prices?

  55. Should I enter a limit order to buy a position with a bid and ask that are far apart?

  56. What are some examples of successfully executed leveraged buyouts?

  57. When is an options straddle deep in the money?

  58. How can I use equity options to protect my stock portfolio from downturns?

  59. When should I use a trailing stop order?

  60. What types of options positions create unlimited liability?

  61. What does high open interest tell you about an option?

  62. How can I use a stop order to limit my losses on a long stock position?

  63. What is the difference between a stop and a market order?

  64. How can I calculate the leverage ratio using tier 1 capital?

  65. What is the difference between a short squeeze and a long squeeze?

  66. What does a high degree of operating leverage indicate?

  67. What countries contribute the largest weight to the global electronics sector?

  68. What types of data are necessary to make a technical analysis?

  69. How much of a diversified portfolio should be invested in the chemicals sector?

  70. What are the top investing strategies for investing in the utility sector?

  71. How do I build a profitable strategy when spotting a Tweezer pattern?

  72. What are some prominent examples of hostile takeovers?

  73. How does the term 'in the money' describe the moneyness of an option?

  74. How is a simple moving average calculated?

  75. What is the difference between degree of operating leverage and degree of financial ...

  76. What is the difference between in the money and out of the money?

  77. Why does the efficient market hypothesis state that technical analysis is bunk?

  78. What techniques can be used to hedge exposure to the chemicals sector?

  79. What's the difference between the coverage ratio and the levered free cash flow to ...

  80. If a long call is owned on the record date of a stock, is the owner of the option ...

  81. How do I learn technical skills for trading commodities?

  82. What techniques can be used for hedging exposure to the electronics sector?

  83. What are the advantages and disadvantages of using systematic sampling?

  84. How effective is creating trade entries after spotting a Tri-Star pattern?

  85. What are the different sources of business risk?

  86. How can an investor profit from the cyclical nature of the electronics sector?

  87. What does negative vega mean for credit spreads?

  88. What options strategies are best suited for investing in the banking sector?

  89. What options strategies are best suited for investing in the drugs sector?

  90. How does DuPont Analysis measure financial leverage?

  91. How does additional equity financing affect existing shareholders?

  92. How can an investor make money from a decline in the electronics sector?

  93. What is the equity multiplier's affect on Return on Equity (ROE)?

  94. How do I calculate the degree of operating leverage?

  95. How can I use a buy limit order to buy a stock?

  96. What is the difference between a buy limit and a stop order?

  97. What's the difference between a credit spread and a debt spread?

  98. How can I calculate the notional value of a futures contract?

  99. How does the performance of the stock market affect individual businesses?

  100. What does positive theta mean for credit spreads?

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