Active Trading FAQs

  1. Who or what are the turtles?

  2. What does "guns and butter" refer to?

  3. How does pyramiding work?

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

  5. What kinds of investments are allowed in a qualified retirement plan, and what kinds are forbidden?

  6. Are we in a bull market or a bear market?

  7. What's the difference between a stop and a limit order?

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

  9. If an IRA owner dies after starting required minimum distributions (RMD) but the spouse is under 70.5, can the spouse roll over the IRA into his/her own IRA, and stop RMDs until age 70.5?

  10. What methods can be used to measure and profit from investor sentiment?

  11. 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?

  12. Why are options very active when they are at the money?

  13. What do the numbers that follow the bid and ask numbers in stock quotes represent?

  14. I am not a resident of the United States, but would like to be qualified as a registered representative in the U.S. Is it still possible for me to write the Series 7 exam?

  15. Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?

  16. What is hedging as it relates to forex trading?

  17. How can I tell if I'm an emotional investor?

  18. What is a Bermuda swaption?

  19. How does somebody make money short selling?

  20. What is after-hours trading? Am I able to trade at this time?

  21. Why do you need a margin account to short sell stocks?

  22. How can I hedge against rising diesel prices?

  23. What is dilutive stock?

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

  25. How does leverage work in the forex market?

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

  27. What is a GTEM order?

  28. What do the different colored candlesticks mean?

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

  30. What are elves?

  31. What qualifies a person as a day trader?

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

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

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

  35. 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?

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

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

  38. What is the difference between leverage and margin?

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

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

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

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

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

  44. 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?

  45. What exactly is a company's float?

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

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

  48. 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?

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

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

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

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

  53. Is scalping a viable forex trading strategy?

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

  55. 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.

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

  57. How are moving averages used in trading?

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

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

  60. How does leverage affect pip value?

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

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

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

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

  65. How can I buy oil as an investment?

  66. What's the difference between a golden handshake and a golden parachute?

  67. What is the homo economicus?

  68. What does it mean to book the basis?

  69. How do I "vest" something?

  70. Which statements about fill-or-kill orders are FALSE?

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