For questions related to trading. Typically used for Stocks trading, can be used for Options or other trades. Related tags are day-trading, trading-volume, online-trading.

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3
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1answer
60 views

Can a bond's market price rise above its lifetime value?

I'm just learning about bonds, reading an introductory book about investing in German. Please correct me if terms are wrong, and if this question can be improved. Consider a bond: Lifetime: 3 years ...
1
vote
1answer
81 views

Trading platforms: 15 years old

I'm aged 15 and have been demo-trading for about a year now. I signed up with plus500 as they give quite good bonuses on deposits. I had to create an account with a fake D.O.B. I have just found out ...
1
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2answers
80 views

Why would we need a “stop-limit order” for selling?

What is the practical usage for selling with a stop-limit order? If we reach a stop-loss point we are likely to sell to protect from a bigger loss. What situation would need to add a limit order on ...
4
votes
2answers
107 views

Who are the sellers for the new public stocks?

There are lots of news for $BABA. It's current price as shown in the market is $68 but my broker put an announcement saying that its limit price is already $85. Then who are the sellers? The company ...
1
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2answers
56 views

How to define a 'market price' for trading platforms?

When I buy/sell stocks, there is always an option called 'market price'. How is the market price defined? Is there any detailed explanation? Thanks,
-1
votes
1answer
78 views

Trading on my own

Can I trade shares I own in a company if I have a trading account How can I do it What must I ask the company I own stocks to do in order to trade myself
6
votes
3answers
293 views

How do top investors pull out 20% ROI?

I've been searching the ROI percentage of well known investors. Warren Buffet - (Berkshire Hathaway) 22% annual return from 1964-2005 George Soros - (Soros Fund Management) 30% annual return ...
1
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2answers
115 views

Using Fibonacci Extensions to set profit targets?

When trading stocks what are the advantages of using Fibonacci Extensions to set profit targets? What Fibonacci Extension level is most appropriate for setting a profit target, or can it be better to ...
1
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2answers
101 views

Does working in finance firms improve a person's finance knowledge?

I would like to know whether it is possible to gain personal finance knowledge if a person works in a good finance firm where he comes across many financial models.
-2
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4answers
90 views

How does the value of an asset (valued in two different currencies) change when the exchange rate changes?

Suppose an asset is traded on two different exchanges in different countries having different currencies. In an ideal world without transaction costs, tariffs, taxes or delivery costs etc, the price ...
1
vote
1answer
43 views

Do query services like Google Finance and Yahoo Finance go back to correct busted and adjusted trades?

Do query services like Google Finance and Yahoo Finance go back to correct busted and adjusted trades? In other words, should I re-download yesterday's data if I want to be sure my intraday data ...
1
vote
1answer
66 views

When do I need to pay interest on my short sell position?

For example, if I deposited $3000 into the account, and I short sell $3000 worth of VXX(a non-dividend paying etf). Do I need to pay any interest on my short sell position in this case?
0
votes
4answers
119 views

How is stock price determined?

Is stock price determined only by the last trade that takes place? For example, if a stock I own is trading at $3.42, and I place a Sell Limit order for $0.00, will the stock price temporarily dip to ...
3
votes
1answer
57 views

Can a stock exchange cancel a trade after settlement?

As I understand, only the exchange itself can cancel an executed trade, for reasons such as improper dissemination of news. But can a stock exchange cancel an executed trade even after settlement, ...
3
votes
1answer
104 views

I'm a UK citizen, can I use US stockbrokers?

I want to invest in global stocks and I like the look of several US based online stock brokers. Is there a difference using one of these stock brokers instead of a UK based one? How does a UK based ...
3
votes
3answers
353 views

When shorting a stock, do you pay current market price or the best (lowest) available ask price?

A stock has a last sale price of 2.5 dollars on the NYSE. Say I am shorting 1000 shares of a stock, there's an ask price of 3 dollars for 500 shares. Theres an ask of 3.5 dollars for 250 shares, and ...
2
votes
1answer
30 views

Investments - Huge drop in bid price versus last close

What happens if a new Bid price is substantially lower than the last Close price - close to 20% lower, and Ask is shown as zero? Will trading take place? Is this likely to be "big money" with insider ...
2
votes
2answers
123 views

As an individual investor, does it always make sense to sell a stock that's gone up due to a merger announcement?

Suppose I hold a stock that's recently had a run-up because another company has made a bid to acquire it. It seems like I should almost always sell the stock in this case, because there are only a ...
2
votes
2answers
118 views

ROI on Forex Trading

I have lately been reading up on what Forex Trading is and how it works. In many sources, it is described that a consistent investor can generate 15% return annually. My question is, what is this ...
2
votes
2answers
132 views

Can I trade more than 4 stocks per week equally split between two brokers without “pattern day trading” problems?

Do pattern day trading issues arrive from having to many trades (4+) per week based on account or person? If I had another brokerage account at a different firm could I use this to increase the number ...
0
votes
1answer
71 views

Trading security and tax

According to GAAP: If I buy 1000 shares of security A for 50$. Then later, I sell 1000 shares of security A for 150$. At the same moment I buy 1000 shares of security B for 150$. For tax purpose ...
3
votes
2answers
125 views

What constitutes illegal insider trading?

The SEC defines illegal insider trading as: [...] buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, ...
3
votes
1answer
99 views

What is a good service that will allow me to practice options trading with a pretend-money account?

I want to get a little more practice before I put my money on the line. I was using Paper Money from thinkorswim through school, but my account is bugged where the buying power will not update. The ...
-2
votes
1answer
147 views

Is there a way I can get bid/ask price data on the NSE in real time?

I need bid/ask price live data on the National Stock Exchange of India to find out what buyers and sellers are quoting on the stock market. My trading platform only provides the best bid/ask price and ...
-1
votes
1answer
100 views

Do technical indicators actually work while analyzing stocks? [duplicate]

I have tried various indicators such as SMA's, EMA's, stochastics, Bollinger bands etc, while trying to analyze a stock, but they often are only as effective as making a wild guess on picking a stock. ...
2
votes
1answer
119 views

Is avoiding fees commonly found with CFD trading possible?

I'd like to push my trading experience a bit. I've been looking into opening an account with a broker that offers automated trading (I'm a programmer and would like to use my own trading algorithms). ...
4
votes
2answers
221 views

Is there a way to monitor when executives or leaders in a company sell off large holdings?

Often a stock price change can be related to when an executive, board director, or president quickly sell off their current company holdings. Is there a way of monitoring a company's insiders ...
1
vote
2answers
139 views

Do algorithmic trading platforms typically have live-data access to stock data?

I was wondering if algo trading programs use live stock data. If so, where do they get that information?
10
votes
2answers
874 views

When the market price for a stock is below a tender offer's price, is it free money (riskless) to buy shares & tender them?

For instance, on March 11, 2014, Jos A Bank (JOSB) agreed to be acquired by Men's Wearhouse for $65/share in cash. A tender offer to existing shareholders was set to expire on March 19th. On March ...
0
votes
1answer
34 views

Deducting related educational trading expenses from LLC?

From what I understand, you need to trade full-time in order to deduct educational related trading expenses such as magazines, courses, or newsletter subscriptions. If I'm not a full-time trader but ...
2
votes
2answers
238 views

I have $20k of imaginary gains from trading last year due to wash sale rules. Should/can I take mark to market?

I have traded for most of the year while I work at my full time job as a software developer. I am using it to augment my income. I like working in academia but it just doesn't pay that well! I started ...
15
votes
1answer
9k views

Difference between GOOGL and GOOG

why are there two ticker symbols for google ( GOOGL and GOOG ), they seem to be mostly identical but when I look at their market values they result in different values currently: 551.64 for GOOGL ...
1
vote
3answers
121 views

Trading: How do you earn a good income when there is such a small change in price (pips)?

I don't understand how one can make more than pennies on a trade when the price will only increase in minuscule amounts - pips.
0
votes
2answers
127 views

Stock market order execution

I want to know how an order gets executed at exchange level once I place an order through an online broker. If i place a buy order for 1000 shares of XYZ Company, does it execute at one exchange? or ...
0
votes
1answer
163 views

Stock Trade Transaction Fee - at what point is it worth it

I have a question regarding the transaction fees that brokers charge and to what extend that put a limit on the minimum amount of shares it is worth buying and how often you can/should trade them. ...
1
vote
2answers
88 views

If trade is settled at the Ask, can I conclude that the immediate trend is bullish

If bid price is 100$ and Ask price is 101$, and the trade happens at 101 $, can I conclude that the buying pressure is more than the selling? If the trade happens on above average volume, (e.g more ...
5
votes
2answers
155 views

Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy?

In this trade, I write an in-the-money covered call and buy an in-the-money put (as an example) on GM, expiring in September 2014. The call premium is $10.02 with a strike of $26, and the put premium ...
0
votes
1answer
62 views

Regulation T and Initial Margin Requirements: How to interpret the 50%?

I wanted to understand initial margin requirements in the Federal Reserve's Regulation T section of the code. I read an article in Investopedia on Regulation T requirements, but I still feel uneasy ...
5
votes
3answers
280 views

Why would someone buy a way out-of-the-money call option that's expiring soon?

I swing trade equity options every once in a while for fun. This morning I witnessed something I do not understand at all. In the attached photo, why would someone purchase 6 contracts for .05 at ...
2
votes
1answer
170 views

Does the uptick rule apply to all stocks/ETFs and other securities, or only specific ones?

Does the uptick rule on U.S. securities apply universally across all stocks, all bonds, all futures and all options? Or is it limited to certain category of securities/instruments? Is there a ...
2
votes
2answers
358 views

When to use geometric vs. arithmetic mean? Why is the former better for percentages?

While computing the average price of a stock or index over a period of time, I have the choice between using an arithmetic mean or a geometric mean. Which should I use and when? I am reading a book ...
3
votes
2answers
288 views

Is there a significant danger to market orders as opposed to limit orders?

I'm following an automated trading system. It gives me buy/sell signals periodically. I usually just add/subtract 0.5% from the current price (as reported by Google Finance) and buy/sell. Last ...
1
vote
1answer
237 views

What does it mean when the broker does not have enough shares to short?

I recently opened a margin account at Questrade with 1000 dollars to see if I can learn anything about margin trading. Today, I'm trying to short sell 2 shares of XLU at a $40 limit price and it ...
0
votes
0answers
78 views

Where can I find a graph of bid & ask prices for a stock, and quantity of shares at each price level?

A website I use that follows the price of Bitcoin provides such a graph (below) so I was wondering if it were available for stocks. http://bitcoinity.org/markets (the second graph down on the page ...
3
votes
2answers
360 views

Are non-US citizens trading on US stocks/options subject to tax?

I'm a non-US citizen, and not residing in US, who uses an online brokerage firm to trade US stocks and options. Are my capital gains (short term and long term) and dividends subject to taxes? If yes, ...
1
vote
2answers
243 views

Why does a small number of bid/ask quotes not cause stock price to fluctuate drastically?

Often times I find that the number of bid and ask quotes presented for a stock are quite small in number. For example, just today I was watching a stock whose bid and ask prices looked very similar to ...
3
votes
3answers
229 views

When writing a covered call, what's the difference between a “net debit” and a “net credit”?

My brokerage account (Fidelity) gives me two choices when writing a covered call: net debit and net credit. What's the difference between these two choices? For example, take DRRX (share price $1.4). ...
-1
votes
1answer
93 views

Confused about google portfolio chart

I added a test trade using google finance, buying 1 share of Google stock : At the end of day here is how the portfolio appears : How the the run percentage so high ? 1367.53% is calculated how ...
1
vote
1answer
70 views

How to select a service to use to begin making investments?

I'm looking to make a small investment in stocks. I like the idea of ETF's and since I'm based in Ireland I'm considering using Davy : http://www.davyselect.ie/our-services/self-invest.html Is this ...
2
votes
1answer
166 views

Am I doing the math for this long straddle strategy correctly?

I'm looking at making a long straddle trade, and I'm trying to make sure I have the math correct before making the trade. Here are the details in the example I want to work out: I'm using options on ...