FAQs tagged as

Day Trading

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

  2. How do day traders capture profits from the difference between bid and ask prices?

  3. How is buying on margin regulated by the Securities and Exchange Commission (SEC)?

  4. Why is the Vortex Indicator (VI) important for traders and analysts?

  5. What is a common strategy traders implement when using the Trade Volume Index (TVI)?

  6. What is a common strategy traders implement when using the Volume Weighted Average ...

  7. Why is the Volume Weighted Average Price (VWAP) important for traders and analysts?

  8. How do I determine where to set my stop loss?

  9. How do I use Price Rate Of Change (ROC) for creating a forex trading strategy?

  10. Who developed the relative strength index (RSI)?

  11. How are Marubozo patterns interpreted by analysts and traders?

  12. What are the most common momentum oscillators used in day trading?

  13. What is a common strategy traders implement when using the Exponential Moving Average ...

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

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

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

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

  18. What is the McGinley Dynamic?

  19. When holding an option through expiration date, are you automatically paid any profits, ...

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

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

  22. What is high-frequency trading?

  23. What is the Coppock curve?

  24. How do I use a premium put convertible?

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

  26. What is the difference between leverage and margin?

  27. Can an option have a negative strike price?

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

  29. How do I measure option liquidity?

  30. How is the Parabolic SAR used in trading?

  31. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to ...

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

  33. How can I hedge against rising diesel prices?

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

  35. I placed a limit order to buy a stock after the market closed, but the stock's price ...

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

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

  38. What do the phrases "sell to open", "buy to close", "buy to open", and "sell to close" ...

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

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

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

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

  43. What is late-day trading? Why is it any different from buying and selling stocks ...

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

  45. What is a Bermuda swaption?

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

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

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

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

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

  51. What is a GTEM order?

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

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

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

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

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

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

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

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

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

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

  62. Who is Mr. Copper?

  63. How long does a stock that has done a reverse split keep the letter "D" at the end ...

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

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

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

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

  68. What qualifies a person as a day trader?

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

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

  71. What are managed futures?

  72. How does pyramiding work?

  73. Is scalping a viable forex trading strategy?

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

  75. What is the difference between options and futures?

  76. What is a margin account?

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

  78. How do I calculate forex pivot points?

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

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

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

  82. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they ...

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

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

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

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

  87. What do the different colored candlesticks mean?

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

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

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

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

  92. What does it mean to book the basis?

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