Active Trading FAQs

  1. What trends and data influence after-hours traders the most?

  2. What are some common traits of undervalued stocks?

  3. What are the best indicators for evaluating technology stocks?

  4. What technical indicators can I use to find undervalued stock?

  5. What's the difference between binary options and day trading?

  6. What's the difference between Chaikin Money Flow (CMF) and Money Flow Index (MFI)?

  7. What's the difference between on-balance volume (OBV) and accumulation/distribution?

  8. What's the difference between moving average and weighted moving average?

  9. What's the difference between Bollinger Bands® and Keltner Channels?

  10. If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

  11. What happens if I cannot pay a margin call?

  12. How do I start using technical analysis?

  13. Where can I purchase options?

  14. How can I invest in a foreign exchange market?

  15. What is a derivative?

  16. How does margin trading in the forex market work?

  17. What does it mean when there is "price action"?

  18. Is it possible to trade forex options?

  19. What are the rules for placing stop and limit orders in forex?

  20. I want to start buying stocks. Where do I start?

  21. I don't understand how a stock has a trading price of 5.97, but when I buy it I have to pay the asking price of 6.04. How can I be paying more than what the stock is trading for?

  22. Why can't I enter two sell orders on the same stock?

  23. What should I look for when choosing a forex trading platform?

  24. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

  25. What is the difference between LIBOR, LIBID and LIMEAN?

  26. How much money do I need to start trading?

  27. What is the difference between the bond market and the stock market?

  28. Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company?

  29. What is the difference between an options contract and a futures contract?

  30. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  31. What is a "wash sale"?

  32. What are the requirements to be able to contribute to an HSA?

  33. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  34. Is life insurance good for mortgage protection?

  35. Why is Game Theory useful in business?

  36. What are the distribution options for an inherited annuity?

  37. What are the differences between AMEX and Nasdaq?

  38. Do stimulus checks work?

  39. What is the McGinley Dynamic?

  40. What's the difference between consumer confidence and consumer sentiment?

  41. My variable annuity account took a beating. Should I seek other alternatives?

  42. Why would you want a monthly benefit versus a daily benefit?

  43. Do stocks that trade with a large daily volume generally have less volatility?

  44. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  45. How do I use the Nova/Ursa ratio?

  46. Which of the following BEST describes tax treatment of a long option that expires without exercise?

  47. What is the difference between systemic risk and systematic risk?

  48. How do I employ a cash-and-carry trade?

  49. What are all of the securities markets in the U.S.A?

  50. What does "gather in the stops" mean?

  51. Which insurance policies do I really need?

  52. What happens to a stop order after a stock splits?

  53. What is an unregistered mutual fund?

  54. What is high-frequency trading?

  55. Is it possible to short sell real estate?

  56. A Straddle

  57. What is an alligator spread?

  58. All of these apply to an option exercise notice EXCEPT:

  59. What is "hammering"?

  60. Given the below information, all of the following statements are FALSE regarding this existing margin account EXCEPT:

  61. What is the Coppock curve?

  62. What is the difference between return on equity and return on capital?

  63. What does it mean when advertisers say that "financing is available"? Should I trust them to give me a good deal?

  64. A customer has the following in his long margin account. Market value: $18,000, debit balance: $10,000 and SMA: $2,000. How much of the SMA may be used to purchase additional securities?

  65. How do I use a premium put convertible?

  66. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  67. What is a vest fleece?

  68. What does "in street name" mean, and why are securities held this way?

  69. How are the interest charges calculated on my margin account?

  70. I own some stock warrants. How do I exercise them?

  71. Is technical analysis used only to analyze stocks?

  72. What is Fibonacci retracement, and where do the ratios that are used come from?

  73. My brokerage firm won't allow naked option positions. What does this mean?

  74. How many types of markets can an investor choose from?

  75. What is the put-call ratio and why should I pay attention to it?

  76. How can I determine a stock's next resistance level or target price?

  77. How does the ISIN numbering system work?

  78. How can unethical executives use options backdating to evade taxes?

  79. What are the oldest mutual funds, by date of inception?

  80. How are stock warrants different from stock options?

  81. Where does the name "Wall Street" come from?

  82. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

  83. Why do option volume quotes differ on different websites?

  84. What is the difference between fast and slow stochastics in technical analysis?

  85. What is the pitchfork indicator that I keep hearing about, and how do I use it?

  86. What do the "BxA" numbers on my brokerage's trading screen mean?

  87. Why won't my broker allow me to sell one stock and buy another on the same day?

  88. Why would my stock's value decline despite good news being released?

  89. What does it mean when a bond has a put option?

  90. Can I roll my 403(b) and 457 into other low-cost venders when I change jobs?

  91. How can a futures trader exit a position prior to expiration?

  92. What is the difference between a Keogh and an IRA?

  93. What's the difference between a mutual fund and a hedge fund?

  94. I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?

  95. Why can you short sell an ETF but not an index fund?

  96. Why would a person choose a mutual fund over an individual stock?

  97. Short selling vs. purchasing a put option: how do the payoffs differ?

  98. What does the term "stock-for-stock" mean?

  99. Is tracking error a significant measure for determining ex-post risk?

  100. Can an option be exercised on the expiration date?

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