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FAQs tagged as

Day Trading

  1.

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

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

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

  4. What is the McGinley Dynamic?

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

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

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

  8. What is high-frequency trading?

  9. What is the Coppock curve?

  10. How do I use a premium put convertible?

  11. What is late-day trading? Why is it any different from buying and selling stocks in the after-hours market?

  12. How can I hedge against rising diesel prices?

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

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

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

  16. 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?

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

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

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

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

  21. 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?

  22. How is the Parabolic SAR used in trading?

  23. How does pyramiding work?

  24. What does it mean to use technical divergence in trading?

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

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

  27. What happens to my call options if the underlying company is bought out?

  28. What is a Bermuda swaption?

  29. What's the difference between a straddle and a strangle?

  30. Should I buy options that are in the money or out of the money?

  31. How does a stop-loss order work, and what price is used to trigger the order?

  32. How can I use market breadth to my advantage?

  33. What is the difference between options and futures?

  34. How do I measure option liquidity?

  35. When does one sell a put option, and when does one sell a call option?

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

  37. How do I use a "basket" option?

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

  39. Can I make money using put options when prices are going up?

  40. Where do I place my target when the price of a stock breaks out of a technical chart pattern?

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

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

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

  44. What is the difference between leverage and margin?

  45. What do the different colored candlesticks mean?

  46. In the forex market, how is the closing price of a currency pair determined?

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

  48. Why do some stock quotes appear in bold print in the newspaper?

  49. At what point in the ordering process does a broker charge commission?

  50. Why does my broker allow me to enter only day orders for short selling?

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

  52. Can an option have a negative strike price?

  53. How do I calculate forex pivot points?

  54. What is the cheapest, fastest way to research, buy and trade stock?

  55. 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?

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

  57. Is scalping a viable forex trading strategy?

  58. How can a company trade more shares in one day than there are shares outstanding?

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

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

  61. What are managed futures?

  62. Can technical analysis be called a self-fulfilling prophecy?

  63. What is the haircut rate imposed by clearing corporations?

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

  65. What is a margin account?

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

  67. How long does a stock that has done a reverse split keep the letter "D" at the end of its symbol?

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

  69. What qualifies a person as a day trader?

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

  71. How is spread calculated when trading in the forex market?

  72. What do the bracketed numbers following a technical indicator mean?

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

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

  75. Do stop or limit orders protect you against gaps in a stock's price?

  76. What is a GTEM order?

  77. Who is Mr. Copper?

  78. What does it mean to book the basis?

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