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Questions tagged [trading]

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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23 views

What are the different compensation schemes available for trading performance

In the past year we've worked on automated trading bots. We now have a working solution that has been working consistently well in a live situation for months. The trading is purely on crypto-...
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1answer
67 views

10 year treasury constant maturity rate explained

The 10-year treasury constant maturity rate over 2019 fell from a Max of 2.75 to a Min of 1.50 with an average of 2.15. I want to check whether my understanding of what the figures and the 10-year ...
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1answer
59 views

FX options for retail trader

I would like to trade options on the FX market, say EURUSD and GBPUSD. I have seen that there are options on the CME that have FX futures as underlying and also some options on spot on the ...
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1answer
41 views

Implications of linking a trailing stop loss linking to different prices

In Think or Swim, I can link my trailing stop loss to the last, bid, ask/bid, mark, or average price. If my goal is to use a trailing stop loss to minimize losses is one typically better to use than ...
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41 views

HPR vs return percentage, difference between values

I'm looking at the analysis for a trading algorithm in the proquant app, it says the average hpr percent is 1.03% and the return is 95.63% over a a few months. What is the difference between these two ...
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1answer
32 views

Put/Call ratio as a technical indicator?

So I was reading about the put/call ratio and how it can be used as a sentiment indicator. So a ratio of 0.7 or less is bullish. If it is between 0.7 and 1.0 it is neutral and if it is greater than 1....
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4answers
219 views

What rules should be set for a “fantasy stock picking” contest?

I'm pretty into stock trading, as are several of my friends, and we love to joke around about trading and debate strategies. It's a hobby for us just like watching sports or a TV show, and we all have ...
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1answer
28 views

Understanding Range Bars (tradingview example)

I'm having problems to understand how to read the range bars from TradingView (not sure if something particular of this platform), image for reference: I can see every bar is $50 between high-low,...
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2answers
98 views

Is it possible to short depreciating assets?

It has become common knowledge that certain classes of consumer goods such as electronics and cars depreciate in price exponentially over time because of a larger supply of newer, upgraded, models ...
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0answers
22 views

Looking for seasonal charts

I came across Larry Williams' True Seasonal Index. It seems to only be available on TradeStation. Not being in the US I have a different broker, so I am looking to create a similar index (with ...
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12answers
11k views

How can there exist a profession consisting of investing others' money?

How can there be a profession where some person sits at a desk and trades or invests for somebody else? If they are so smart and can predict the market so well, would they not long ago have invested ...
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1answer
183 views

Explain this old trading saying

I read in a trading book that An old saying on Wall Street notes that amateurs trade at the open and professionals trade at the close. what does it mean?
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4answers
6k views

I am asked to complete my withdrawal transaction with COT fee of 1200 dollars

I was marketed by a lady online on some investment packages in bitcoin. ($200 to become $2500 in one week of trade). I indicated interest in this. She took me to a trading website to sign up. I ...
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0answers
28 views

Can you set a lower limit on a buy limit order or another order type?

For example say XYZ is trading at $5 and I want to buy once it reaches $4 but not lower than $3.50. Is their a way to set this up? I wouldn't want to set a limit order at $4 in the chance it gaps ...
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1answer
70 views

Correlation between the perfect market-timing strategy and the market itself?

What would be the correlation between a perfect market-timing strategy [that it always goes long (short) one unit of the market the day before the market goes up (down)] and the market itself, given ...
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1answer
79 views

How to detect and construct an arbitrage trade?

I have the following problem: I am supposed to decide, if there exists an arbitrage,and if so, I am supposed to construct it. 1.Bond Maturity: 1 year Nominal value: 1$ Annual coupon: 0% Market ...
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2answers
3k views

How to salvage money from a call option that has lost value?

I bought a 12/06/19 $202.50 call option on Alibaba for $2.45. The call is currently trading for about 25 cents and I have lost almost all my money because BABA has dropped to about $194. Is there a ...
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0answers
29 views

When FOREX isn't considered an OTC market

An over-the-counter (OTC) market is a decentralized market in which market participants trade directly between two parties and without a central exchange or broker. Source: Investopedia By this ...
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2answers
47 views

How does the Positive Volume Index (PVI) formula work?

I'm completely new to calculation of trading indicators and I can't understand this PVI formula: PVI = {yesterday’s PVI X [(today’s CP – yesterday’s CP) ÷ yesterday’s CP]} + yesterday’s PVI If I ...
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3answers
283 views

Day/swing trading: Making 30 USD per day with 10000 USD capital possible?

Is it possible to make 30 USD per day starting with 10000 USD? How much risk would I have to take to get this return? What knowledge/skills do I need to get this return?
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2answers
152 views

How to “validate” online stock trading platforms?

I don't consider myself an investor, mainly as I don't have sufficient disposable income to invest. However over the years I've accumulated a number of share certificates for various public companies....
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2answers
86 views

What are the payoffs for a seller of call options?

Suppose IBM stock is trading at $100 per share and a trader purchases one IBM $100 call option for $2.00 per contract. Scenario 1 IBM is $105 at expiration. The buyer's profit would be $300 (...
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0answers
21 views

How to find the most efficient gamma and vega hedging

I want an options position where I can short some options to pocket the premiums and benefit from the time decay. I also want to be vega and gamma neutral. Is there an established way to find which ...
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0answers
36 views

How do futures clearing houses work?

I know that in a futures trade there is a clearing house which sets margin requirements. However I read online that: Clearing houses take the opposite position of each side of a trade which greatly ...
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2answers
85 views

How to calculate daily return and cash when holding a futures position?

I have a futures trading strategy and want to calculate the daily return. I need this to get the Sharpe ratio of that strategy. The daily return of my strategy should be: EOD ...
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2answers
298 views

How to plan investment and retire at an age of 45? [duplicate]

I am a recent grad who just began working for a 'big 4' software engineering firm. I earn a good salary and I would like to invest 75% of it efficiently so that I can retire early at age 45. ...
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1answer
73 views

Calculate percent of goal where start is not zero

How would I calculate the percent to a goal between two numbers where the starting number is not zero? for example: purchase price = $10 target price = $80 current price = $61 What percent to $80 ...
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1answer
49 views

IPO Lock up trade

I have a question regarding how to benefit from major price movements after the end of a lock-up period post IPO. I have seen that in many cases there are no extraordinary movements in the prices in ...
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0answers
55 views

Meaning of “non-reportable” and “dealer intermediary” in the CFTC COT report

What is intended with "non-reportable" and "dealer intermediary" long/ short positions in the CFTC COT report HERE? My toughts of "dealer intermediary" is that they could be the fx brokers; in other ...
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3answers
187 views

As a trader, why would you trade forex or options/futures instead of stocks?

My apology for the novice question: I've seen a certain number of people trading forex, future or options as their full time career, and my understanding is that they have all been through stock ...
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0answers
56 views

What kind of Data is fed into tradebots?

I always assumed were just fed news headlines and historical stock data to make their decision to buy or sell. But recently I have found out that neural networks have a bad time handling big sets of ...
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1answer
41 views

How to calculate monthly return on a changing capital base when swing trading?

I'm just starting out in swing trading, and I'm facing a somewhat nagging doubt. Since last January I executed 27 trades, with varying results. I am tracking down the percent return on each trade ...
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3answers
183 views

US Tax Obligations for Multiple Trades of Stocks or Cryptocurrencies

Background I am trying to understand potential tax obligations for trading stocks and cryptocurrencies in the US. I was able to find the following information online: The IRS considers ...
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1answer
68 views

Difference between CFTC COT report and COT legacy?

Does anybody know the difference between the CFTC COT report and the COT legacy report on https://tradingster.com/? Numbers are quite different between these two.
2
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1answer
77 views

Do stop orders work in overnight trading

I directed my broker to place a 5% stop order on a stock in my portfolio selling in excess of $100/share. Some weeks later while still holding the stock the price dropped 30% in overnight trading. The ...
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1answer
160 views

What is the Euro 10 yr Swap?

I know that a swap (more specific an IRS) is an OTC product to exchange future payments base on a principal. In this case, the interest on the fixed leg will be computed trying to have a NPV of 0, so ...
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2answers
96 views

Long-term Returns on International Currency

Some investors, when forecasting a localized (to the relative nation or source of currency) economic downturn or currency devaluation, choose to invest in foreign currency. I have seen portfolios that ...
2
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1answer
140 views

What is the layman's explanation of ETFs and how does one trade U.S ETFs?

I'm new to the field of investment and would like to understand ETFs, they have not been clear to me even though I tried a bunch of YouTube tutorials. Also, how is it possible for a European resident ...
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2answers
148 views

Could I file for Trader Tax Status with a full time job?

Suppose I have enough trades and meet the requirements to qualify for Trader Tax Status with the IRS. (If I trade in the morning, trading 4 days a week, 15 trades a week, 720 a year, plus any ...
2
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1answer
92 views

If I am a Canadian Citizen, how can I surpass/mitigate the losses while trading US Stocks due to exchange rate?

So, imagine a situation, I am a Canadian citizen who decided to invest into an American based company, consequently all the activity is taking place at the NASDAQ. At some point in the future I am ...
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2answers
162 views

How is insider trading different from any other form of profit via incomplete knowledge?

Judging from the answer to "What is insider trading exactly?" that defines it as any trading done on material non-public information relating to an instrument, it seems overly restrictive to me to ban ...
2
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3answers
140 views

Over what time frame should we evaluate whether an active trading strategy is successful?

I have been playing around with some different active trading strategies by looking at historical stock data. However, I am running into some difficulties in how to define whether a strategy actually "...
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2answers
121 views

Trading using Simple Moving Average strategy

I am trying to understand the concepts for applying the Simple Moving Average principles for identifying buying/selling points for stocks. I have the calculations down for getting the Simple Moving ...
5
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1answer
833 views

Multiple stock symbols for same company with in USA

I was looking for a quote (and trading) for Berkshire Hathaway Inc class B . There are web sites that are displaying the following symbols BRK'B NYSE: BRK.B BRK-B Why so many and what about ACATS ...
2
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1answer
66 views

what if change in open interest is very high but volume is low [closed]

in a strike price the change in open interest is 1300000 with volume of just 1800, what does it mean if it possible please also explain difference between volume and change in open interest.
2
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2answers
76 views

“Holding the trade” in fixed income arbitrage

From TIPS v Treasuries: What a wild ride it was! Receiving 5% on one US Government Bond and paying 2.5% on another US Government Bond with the same maturity is an obvious winner, but many hedge ...
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0answers
80 views

Why BAC company has “Gross Profit” reported every day?

I was looking into performance of BAC (Bank Of America Corp) and noticed very strange thing - it reports "Gross Profit" almost every day. See attached image and the link. Why is it so, is BAC a ...
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1answer
69 views

What is meant by drifts with respect to the stock market?

A lot of websites had specific types of drifts explained like post-announcement drift but I couldn't find a standard definition or explanation.
2
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3answers
110 views

Are there investable securities that grow nonlinearly/exponentially with the underlying asset?

Let's say I'm a commodities trader, and Jesus Christ himself has just told me that gold is about to become much, much more valuable. We'll leave the debate on whether that's insider trading to another ...
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3answers
128 views

Are full-time retail traders self-employed or business persons? [closed]

I was asked this question today by one of my known people if full time traders are counted as self-employed or business persons or professional? I got really confused because as much as I know, a ...