Active Trading FAQs

What do the SP500, Dow and Nasdaq futures contracts represent?

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

How do currency swaps work?

What is a debt/equity swap?

Are We In A Bull Market Or A Bear Market?

Where does the name "Wall Street" come from?

How do I use the Relative Strength Index (RSI) to create a forex trading strategy?

How do I use the Zig Zag Indicator to create a forex trading strategy?

What does deflation mean to investors?

I own options on a stock, and it's just announced a split. What happens to my options?

What is the best method of analysis for forex trading?

How is a put option exercised?

How does the ISIN numbering system work?

If everyone is selling in a bear market, does your broker have to buy your shares from you?

What is the difference between in the money and out of the money?

Do I own a stock on the trade date or settlement date?

Why Should I Invest?

What is the difference between fundamental and technical analysis?

What does rollover mean in the context of the forex market?

What is the difference between open interest and volume?

How do companies benefit from interest rate and currency swaps?

What does "guns and butter" refer to?

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

Who determines interest rates?

How Do Fully Diluted Shares Affect Earnings?

What do 'outrights' mean in the context of the FX market?

When did the U.S. start using paper money?

What is the difference between options and futures?

Where can I find information about pre and afterhours trading on the NYSE and the Nasdaq?

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

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

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

What do the numbers after the bid and ask numbers in stock quotes mean?

How is the Exponential Moving Average (EMA) formula calculated?

How can I prevent my limit order from not getting filled if the stock's price gaps above the entry price?

Why does the time value of money assume that a dollar today is worth more than a dollar tomorrow?

How does the balance of payments impact currency exchange rates?

What impact does a higher nonfarm payroll have on the forex market?

What is Fibonacci retracement, and where do its ratios come from?

What is foreign exchange?

Why isn't the EUR/USD currency pair quoted as USD/EUR?

How do I use exponential moving average (EMA) to create a forex trading strategy?

How does the balance of trade impact currency exchange rates?

How does margin trading in the forex market work?

What is the difference between Keynesian and monetarist economics?

What is the correlation between U.S. stock prices and the value of the U.S. dollar?

What are the top technical indicators used for rangebound trading strategies?

How do I place a stoploss order?

What is highfrequency trading?

Why are the bid and ask quotes usually so far away from each other in afterhours trading?

What is the difference between Stochastic Oscillator and Stochastic Momentum Index?

Quotedriven and orderdriven markets: What's the difference?

What are the differences between patterns and trends?

How can you lose more money than you invest shorting a stock?

How long can you short sell for?

Why is the 50day simple moving average so popular among traders and analysts?

What is the difference between trading currency futures and spot FX?

If I short sell $5,000 worth of stock and the stock becomes worthless, wouldn't the return be much greater than 100%?

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

Is there a time limit that must pass before short sales are accepted for IPOs?

Which periods are used most commonly in creating moving average (MA) lines?

What's the difference between relative strength index (RSI) and stochastic oscillator?

Is it Possible to Measure Investor Sentiment?

How Do I Target a Breakout in a Technical Chart?

Can an Option Have a Negative Strike Price?

How do I use an arbitrage strategy in forex trading?

What is the difference between pips, points, and ticks?

What Does 'Buy on Cannons, Sell on Trumpets' Mean?

What Does It Mean When There Is 'Price Action'?

What is hedging as it relates to forex trading?

How often do exchange rates fluctuate?

What's the difference between Rsquared and adjusted Rsquared?

Why isn't the U.S. dollar worth more than the British pound?

What causes a recession?

How do I convert one type of currency to another, such as dollars to pounds?

What is a pip and what does it represent?

How Long Does the D Stay in Split Stock's Symbol?

What Part of a Company's Float Can Be Shorted?

What is the value of one pip, and why are pips different between currency pairs?

Why Isn't My Stock Trading at the Buyout Price?

Is a Slow Stochastic Effective in Day Trading?

Short Selling Vs. Put Options: How Payoffs Differ

What are the differences between divergence and convergence?

How does the foreign exchange market trade 24 hours a day?

What do the terms weak dollar and strong dollar mean?

What is the difference between LIBID and LIBOR?

What is the Big Mac index?

What is inflation and how should it affect my investing?

Can a stock lose all its value? How would this affect a long or short position?

What are the main risks associated with trading derivatives?

How do you make money trading money?

How do national interest rates affect a currency's value and exchange rate?

What are the best indicators to identify overbought and oversold stocks?

How is the Parabolic SAR used in trading?

What's the difference between a drawdown in banking and a drawdown in trading?

How do I identify a stock that is under consolidation?

What's the difference between a cash account and a margin account?

How do 50day, 100day and 200day moving averages differ?

What exactly is insider trading?

Are Stocks With Large Daily Volume Less Volatile?
Hot Definitions

Compound Annual Growth Rate  CAGR
The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ... 
Net Present Value  NPV
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ... 
PriceEarnings Ratio  P/E Ratio
The PricetoEarnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ... 
Internal Rate of Return  IRR
Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. 
Limit Order
An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. 
Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay shortterm and longterm obligations.
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