Questions tagged [trading]

Trading means exchanging one item for another such as goods for money. In finance, trading refers to the buying and selling of securities such as stock, options, or futures. Related tags are day-trading, trading-volume, and online-trading.

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Why do futures allow higher leverage?

Why do futures allow higher leverage? Shouldn't the risk of a futures contract be the same as the spot. In that case, why would brokers feel more comfortable handing leverage to futures traders vs ...
Joe C.'s user avatar
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Is it legal to use "yfinance" for trading with real money? [closed]

As mentioned on their website, yfinance is for research and educational purposes. I have seen some discussions that it is not advisable to use yfinance for trading with real money (see this, this, and ...
N N's user avatar
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Is it possible to exchange one stock for another without cash as an intermediary? [closed]

According to my research, it is possible to exchange one stock for another without selling to cash and then buying the other. The process is known as a "stock-for-stock" or "share-for-...
anonim's user avatar
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What does Takeout and Putup mean?

What does takeout and putup values mean in fixed income trade and how would you interpret these values?
the_brass_bottle's user avatar
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relationship between a mortgage bond and homeowner

This is a quote from Liars Poker, the famous book by Michael Lewis that details his time working as a bond salesman. Lewis Ranieri cast himself in an odd role for a Wall Street salesman. He ...
APerson's user avatar
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What happens under the hood when I place an order in the forex market?

I'm new to the field of forex trading and I'm trying to understand what actually happens under the hood when I place an order. The point is that I've read everywhere that I don't own the underlying ...
Maurizio Liguori's user avatar
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2 answers
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Is Limit Order classified as Trading rather than Investing?

I had a question, and a Scholar has commented below. Sounds like you're trading rather than investing. Good luck; you're going to need it So my questions are below( despite my very long and monetary ...
puzzled's user avatar
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Is relying only on large cap stocks a reasonable trading strategy?

I have worked on a simple strategy that looks for the stock with the largest cap, buys it, keeps it until it has a 2% increase, and then repeats the process again. This is a simple strategy but ...
N N's user avatar
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References/terms to search for regarding financial instrument universe selection

When attempting to profit off of the market in one way or another, an entity, be it a fund, individual investor, institution, etc., must first decide on what actual financial instruments are to be ...
QMath's user avatar
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What exactly is wrong with treating two conceptually similar trading indicators as independent pieces of evidence?

Suppose you come across a financial trading system which starts by checking a security's 200-Period Moving Average, either by itself or in conjunction with the security's price data, perhaps signaling ...
user10478's user avatar
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Trading on Charles Schwab shortly before the market closing time: "Your request will be processed on a best efforts basis. "

I placed an ordered to buy some ETF on https://www.schwab.com/ shortly before the market closed and I saw the warning: Please Note: The market closes in approximately 3 minutes. Your request will be ...
Franck Dernoncourt's user avatar
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What are the upsides and downsides if one's currency exchange order is routed as an odd lot order instead of IdealPro on Interactive Brokers?

I placed a currency exchange order on Interactive Brokers from EUR to USD. Since the amount was below 20kEUR, Interactive Brokers told me that the currency exchange order would be routed as an odd lot ...
Franck Dernoncourt's user avatar
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How to properly hedge indices futures NQ by selling leveraged index options TQQQ or SQQQ?

Is there a formal futures NQ vs TQQQ options contracts hedging ratio calculation/strategy to tap on the fast decaying value of weekly expiry TQQQ options thereby creating an asymmetric risk-reward ...
surewin's user avatar
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2 answers
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Do CFD brokers ban profitable clients from trading on their platform, since these clients make them lose money?

Many CFD brokers make money from trading against their clients and profitable clients make them lose money. This is similar to how casinos operate. Casinos ban profitable customers. Do CFD brokers do ...
curious's user avatar
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How do we trust power of compounding with mutual fund SIP

When I search for SIP Mutual fund plans, often I see huge money returns in the long run. But when I research, it's usually mentioned as Power of compounding, that's how they're able to return such a ...
King's user avatar
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Is my algo trading illegal?

I have algo trading program (written by myself) and when it detects that price are going down it's going to sell shares (if I have one) wait a couple of sec/min and buy the shares on lower price. Last ...
Andrew Sasha's user avatar
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DOW Mini Futures Options Liquidity - Symbol YM

I am trading on the Interactive Brokers TWS platform. That is the name of the broker and the platform they offer that I use. I have noticed that there is almost no liquidity on the YM Mini option ...
ajnabi's user avatar
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Is the geometric mean of the price really equal to 1?

If we assume that the geometric mean of the price is 1, then the probability of a price drop of 20% should be equal to the probability of an increase of 25% (0.8*1.25=1). If so, then we have a trading ...
Денис Корниенко's user avatar
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Terminology to describe period of time when return is negative?

These chart show the value of SPY in 1996 and 2009 Please refer to the scenario (screenshots in the link above) where someone purchased 1 share of the market in 1996, and sold at the trough in 2009. ...
the_muffin_man's user avatar
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Option trading to avoid overnight fees over a short position

I do a lot of short selling as a day trader. There is a pattern that I trade often. This one asks me to short and keep my position for several days. The problem I have is that the broker charges too ...
David's user avatar
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How to Close Delisted company's short position?

I have shorted OZON and YNDX last year in FEB before suspending trading and after suspending was not able to close these positions. As Companies now are in delisted mode, Broker is not giving chance ...
Malkhazi Dartsmelidze's user avatar
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2 answers
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Comparing option deltas of significantly different underlyings

Please help me correct or confirm my intuition about options deltas. My understanding is that delta is the change in an option's price given a $1 change in the option's underlying. Moreover it's ...
geofflittle's user avatar
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2 answers
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selling covered calls below my average cost

I have this stock more than 2 yrs and wont go up , I am planning to sell covered calls all my shares just to return my capital ... example my average cost is 5 and I am planning to sell it at a strike ...
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Red candlestick and volume bar on trading view

On trading view, I get the idea that if closing price is less than the opening price, then we will get a red candlestick on the price chart, and if closing price is greater than opening price, then we ...
stats_geek's user avatar
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How do the practicalities of futures contracts for commodities work?

I know in principle how future contracts work (and correct me if I'm wrong): Essentially, provides a contract holder with the right to buy a commodity in the future at a given price. This part, and ...
bullfighter's user avatar
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Using two stop limit orders instead of one OCO order

On KuCoin, I want to protect my positions with Stoploss/Take profit, but as we know sl/tp is only supported with Futures trading and not Spot. So, I decided to go with OCO (One Cancels the Other) ...
behz4d's user avatar
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Why the chart on Binance differs from that of TradingView?

I started to study trading just a couple of weeks ago and am currently practicing with binance mock trading (futures perpetual). The problem is that on binance futures website it shows, for instance, ...
autodidacti's user avatar
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1 answer
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What are the downsides, if any, of purchasing bonds on the secondary market instead of the primary market?

Let's ignore the transaction fees from my broker, which tend to be higher for the secondary market. Are there any other downsides of purchasing bonds on the secondary market instead of the primary ...
Franck Dernoncourt's user avatar
1 vote
1 answer
58 views

Does a limit buy marker order ABOVE a price threshold exist?

Contrary to a classic limit buy order, I would like to trigger a market buy order only once the price exceeds a certain threshold. Does such an order type exist? (From what I understood, if I send a ...
scott_m's user avatar
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What happens if I place a stop limit sell order with a $1 limit?

Let's say I am looking to sell a Bitcoin on Coinbase if the price drops to a certain level. This sounds like a perfect use case for a stop limit order. So I set my stop price at the level that I want ...
Jeff Camera's user avatar
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Is there any currency conversion charge (including suboptimal rate) when purchasing an ETF whose underlying assets are in a different currency?

Example: Amundi Index Solutions - Amundi S&P 500 UCITS ETF C EUR. Traded in EUR but underlying assets are in USD. Assume I buy it from an assurance-vie account based in France. Is there any ...
Franck Dernoncourt's user avatar
2 votes
1 answer
116 views

How market orders are filled?

When we look at the stock price S of a stock, then if I am correct S is equal to the average between the highest bid and the lowest ask for this stock. Hence since the highest bid is lower than the ...
ConfusionMatrix's user avatar
1 vote
0 answers
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Judge the amount of money to trade

I have been day trading for about a year. I got some statistics on a stock market pattern. The latter gives me an 82% probability of occurring and an expected gain of 13% per trade. I'm having trouble ...
David's user avatar
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2 answers
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How is it possible to buy call options with a strike price below current market price?

I'm a newbie with all of this. I've been reading on call options and from my understanding, you're paying some "premium" to buy an "option" to buy the stock at a certain fixed ...
streampaw's user avatar
-2 votes
1 answer
100 views

Head & Shoulders and Bullflag Rectangle patterns [closed]

Video: https://www.youtube.com/watch?v=3SELauVQ1Tk The above video describe several pattern with high degree of success. I would like to implement two of them, i.e. Bullflag Rectangle pattern and the ...
David's user avatar
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How do market-makers make a profit in the bond markets?

Do they sell at ask, buy at bid? Meanwhile, investors buy at ask and sell at bid. So, do the market-makers profit from the bid-ask spread?
darkuss's user avatar
2 votes
1 answer
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Why is EUR/CAD market open now?

As far as I know the Euro follows London times (closed right now), and CAD session is almost the same as USD session (closed right now as well) so why is EUR/CAD market open and trading right now?
Aspiring Dev's user avatar
-1 votes
1 answer
113 views

What's the relation between free margin and drawdown? (and leverage)

I'm trying to understand whether different leverages can affect the drawdown in forex/CFD trading. I have noticed that given the same lot size, the bigger the account leverage, then the bigger is the ...
Gerard Bosch's user avatar
3 votes
1 answer
50 views

Selling covered calls when the contract is over 5x the cost of the stock share

I just discovered that a stock I've held onto a few hundred shares of for a while, which is currently trading for about half what I paid (under a dollar a share) has an options contract for a covered ...
Elise C's user avatar
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How would one profit from an accurate forecast of tomorrow's price varience?

If one had a reasonably accurate forecast of the variance of the price of some market security, such that one knows approximately what the price variance will be tomorrow, but not whether the price ...
andrewH's user avatar
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1 vote
1 answer
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Risk Per Trade Calculation

I have a little confusion regarding my risk per trade management. I am unclear if I need to calculate this absolute amount each time with the new account value or the risk per trade is calculated once ...
Jôsùå's user avatar
0 votes
3 answers
269 views

Trading options and stocks under $1 per share at Charles Schwab shortly after the brokerage account creation

When creating a brokerage account at Charles Schwab, I see: January 05, 2023: Funds post. You can buy most securities, but we restrict withdrawals and trading of some securities, including all ...
Franck Dernoncourt's user avatar
-4 votes
1 answer
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When price is sitting at a Resistance Level, how can I tell if it will go "Up" or "Down" [closed]

I am looking for some advice in this area. I was doing some "backtesting" and charted the following image here (on a 1 Hr Chart): This is using a "Pitchfork" (which looks as though ...
Casey Harrils's user avatar
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1 answer
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How do you analyse components of Index option to help you get more accuracy while trading options?

Suppose, you trade in options, Option index comprises of Many stocks, so how do you analyse those stocks in order to determine the movement of price in options while doing intraday trading?
Romieo King's user avatar
2 votes
1 answer
251 views

When to use a "Take Profit Limit" order vs a "Limit Order" to take profit on an open position?

Assume that I go long 100 XYZ @ $1,000, and I want to close the position once the price reaches $1,100. I can see two options, I create a "sell limit order" for 100 units @ $1,100 I create ...
Robbo's user avatar
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2 votes
0 answers
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What happens when I buy a stock?

I am curious about what happens under the hood when I buy one share of APPL at market price on robinhood. What happens if there is someone else on robinhood is selling one share of APPL at the same ...
etudiant's user avatar
28 votes
4 answers
7k views

Is it insider trading to purchase shares in a competitor?

I work for a publicly traded company, and part of my compensation includes stock. We've gotten a bunch of (recurring) training of what not to do with this stock to avoid insider trading -- for example,...
Roddy of the Frozen Peas's user avatar
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1 answer
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What's the difference between a commission fee and an artificially inflated spread when executing a trade?

I read on https://www.kitco.com/news/2022-11-29/Fidelity-Crypto-is-a-go-4-5-trillion-firm-launches-retail-crypto-trading.html: The platform promises “commission free” crypto trades, but the company ...
Franck Dernoncourt's user avatar
-5 votes
2 answers
188 views

Why do some cryptocurrency trading platforms require users to use the platform's native crypto token to access the platform?

I read on CNBC: FTT, the native crypto token that gives users access to the FTX trading platform. Why do some cryptocurrency trading platforms require users to use the platform's native crypto token ...
Franck Dernoncourt's user avatar
2 votes
1 answer
241 views

Can I buy index funds without margin and own it like a stock?

I am a total newbie so this might be a silly question but I am trying to buy S&P 500 and own it like a stock. The problem is that my broker (XTB) only has the option to buy it with margin and ...
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