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 are the requirements to be able to contribute to an HSA?

  32. What is a "wash sale"?

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

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

  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's the difference between a mutual fund and a hedge fund?

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

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

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

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

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

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

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

  76. What is the best time of the day to trade?

  77. How many attempts at the Series 7 exam are permitted?

  78. What do you call a candlestick with no shadows, and what does it mean?

  79. How do I calculate forex pivot points?

  80. What is variable life insurance?

  81. Use the following information about a customer’s margin account to answer the question.

  82. I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? From whom do I get these plans?

  83. If everyone is selling in a bear market, does your broker have to buy your shares from you? If so, won't he be losing his shirt?

  84. What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" mean?

  85. What's the difference between a regular option and an exotic option?

  86. I make over $100,000/yr and my adjusted gross income precludes standard IRA contributions. My contributions to my 401(k) plan at work are limited to about $7,000/yr. It seems I'm being penalized for my income. Are there other retirement savings options av

  87. What is the difference between a logarithmic price scale and a linear one?

  88. How is a put option exercised?

  89. What does the diluted share price reveal about a company's financial strength?

  90. What is relative strength?

  91. Do I need to take the Series 6 examination after I have already successfully completed the Series 7?

  92. Who or what are the turtles?

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

  94. How does pyramiding work?

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

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

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

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

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

  100. 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?

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