Active Trading FAQs

  1. How do traders combine a short put with other positions to hedge?

  2. What are the SEC regulations on exercising stock options?

  3. What's the difference between basic shares and fully diluted shares?

  4. What is a double Bollinger Bands® strategy?

  5. What are the differences between delta hedging and beta hedging?

  6. How do I set a strike price in an options spread?

  7. What are some examples of positive correlation in technical stock market analysis?

  8. When should a business avoid debt financing?

  9. How do traders use Bollinger Bands® to identify a breakout?

  10. How is a short call used in a bear call spread option strategy?

  11. Can I buy index options on the Dow Jones Industrial Average?

  12. What's an effective options strategies for investing in the food and beverage sector?

  13. How do companies use the equity multiplier to determine a financing strategy?

  14. How do I set a strike price for a future?

  15. How can I use the equity multiplier to determine if a stock is a good investment?

  16. How are margin calls regulated by the SEC?

  17. How can investors benefit by understanding geometric means?

  18. What are some important financial ratios to evaluate with respect to consumer packaged ...

  19. How can derivatives be used to earn income?

  20. How can I calculate the delta adjusted notional value?

  21. What does a falling open interest on a stock signal?

  22. How can premium financing of life insurance help high net worth individuals (HNWI)?

  23. How is the price of a derivative determined?

  24. What expiry months are typically available for derivatives?

  25. What are some of the more common Fibonacci retracements?

  26. What is the difference between derivatives and swaps?

  27. With what kinds of securities does it make the most sense to enter a long position?

  28. What options strategies are best suited for investing in the utilities sector?

  29. How does off balance sheet financing work?

  30. What is the average debt/equity ratio of real estate companies?

  31. What options strategies are best for investing in the industrial sector?

  32. What option strategies can I use to earn additional income when investing in the ...

  33. What are the best options strategies for investing in the real estate sector?

  34. How is implied volatility used in the Black-Scholes formula?

  35. What is an over-the-counter derivative?

  36. What does it mean to be long or short a derivative?

  37. What does the underlying of a derivative refer to?

  38. What kinds of derivatives are types of contingent claims?

  39. What does it mean to take delivery of a derivative contract?

  40. How can derivatives be used for speculation?

  41. What does it mean when I get a Fed margin call?

  42. What does it mean to roll a derivative contract?

  43. How can derivatives be used for risk management?

  44. How can I profit from monitoring open interest?

  45. How do I Implement a Forex Strategy when spotting a Sanku (Three Gaps) Pattern?

  46. How is liquidity risk captured by the cash conversion cycle (CCC)?

  47. What debt to equity ratio is common for a bank?

  48. What is the relationship between degree of operating leverage and profits?

  49. What's a good forex strategy to use when spotting a Wedge-shaped Pattern?

  50. Is the drugs sector better suited for active or passive investment?

  51. Why would a company issue a rights offering?

  52. What is the difference between share purchase rights and options?

  53. How do I perform a financial analysis using Excel?

  54. What are the tax benefits of establishing a sinking fund?

  55. What is the difference between an option-adjusted spread and a Z-spread in reference ...

  56. In what ways can a sinking fund affect bond returns?

  57. What are the pros and cons of using the fixed charge coverage ratio?

  58. What are the different types of margin calls?

  59. What debt/equity ratio is typical for companies in the insurance sector?

  60. Can delta be used to calculate price volatility of an option?

  61. Why is the Trade Volume Index (TVI) important for traders and analysts?

  62. How do I use Trade Volume Index (TVI) to create a forex trading strategy?

  63. What is the Trade Volume Index (TVI) formula and how is it calculated?

  64. How do I use Time Segmented Volume (TSV) for creating a forex trading strategy?

  65. Why should investors care about risk weighted assets of a bank?

  66. For what sorts of purposes can the funds in a share premium account be disbursed?

  67. If my brother-in-law, who works at a pharmaceutical company, tells me about his research ...

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

  69. How legitimate are companies that advertise debt consolidation for all my credit ...

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

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

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

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

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

  75. What are some examples of horizontal integration?

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

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

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

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

  80. Why are coupon payments considered an annuity?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  96. Are simple moving averages backward or forward looking?

  97. Are stop orders only used for stocks?

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

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

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

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