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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59 views

Should I consider the bid-ask spread as part of the transaction cost of a market order?

When I place a market order or marketable limit order that successfully executes, should I consider the bid-ask spread as part of the transaction cost of my order? The bid-ask spread is appears to be ...
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140 views

Where can a normal person get the same leverage Bill Hwang got to buy stocks?

Please don't argue about how risky or irresponsible such a trading strategy is. Many financial publications described that Mr Hwang got a leverage of about 1:5 meaning for each $100 of his own money ...
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is mark to market accounting has to be FIFO?

I am thinking to file for the mark to market trading account but I do not like FIFO. Is FIFO part of mark to market accounting?
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If I sold some stock by mistake and immediately bought it back, is that sale still subject to capital gain tax in USA?

Today I wanted to buy a few shares of Apple (AAPL), let's say 10 shares. When I handled the UI, there was the "By number of shares" and "By dollar amount" and then "Market&...
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118 views

Are there any legal restrictions on “artificially” changing the price of a stock?

I understand that stock prices change partly based on supply and demand. In theory, could you convince a large group of people to buy a large portion of the stock so that the price would "...
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41 views

What does “trading in portfolio” mean?

On this Wikipedia page about value at risk, at the end of the second paragraph, it says "This assumes mark-to-market pricing, and no trading in the portfolio." What exactly does "...
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111 views

How Do I Calculate Average Share Price?

If have 3,000,000 shares at an average price of 10.8¢ per share and want to purchase another 50,000 shares at 60¢ per share in same company, what will my average price per share change to?
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111 views

If I invest in my friend's trading based company that signs a contract to a fixed RoI can the gains be treated as long term if I leave it for a year?

So my friend has a company that seeks investments from friends and family (possibly other acquaintances too). They invest these funds into stocks, etfs, derivatives, etc using their patented ...
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39 views

Is decline of volume is a signal of divergence?

I'm taking a look a BTCUSDT daily chart, currently it has a bearish divergence on its chart and RSI. But I have one more thing I noticed on the chart, that the volume is on decline over the time. Is ...
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38 views

Can a stock's Bid price be lower than the price of any active Limit Buy order?

Earlier today I decided to place a Limit Buy order for some stock for a target price somewhere in the middle of the Ask-Bid spread. Since the price of my order was higher than the Bid, I would have ...
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100 views

What does “trading with the street” mean?

When someone is talking about their job duties in various positions, and then says that, as a trader, they were "trading with the street," what does that mean? And opposed to what? Is it ...
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How do you calculate the break even price point for a crypto trade with fees?

Consider the following problem: LIMIT BUY Total: €1,000 (starting balance) BTC Price #1: €50,000 Fee: 1,000 * 0.5% = €5 Amount: 1,000 - 5 = €995 Purchase BTC: 995 / 50,000 = ₿0.0199 LIMIT SELL Amount:...
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29 views

Can a CFD broker avoid paying?

Lets say you have some shares in your portafolio that you bought and the prices increased really high, can your broker decide not to pay you the difference once you closed your position because you ...
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1answer
153 views

A trading program that modifies its own risk management?

The idea is that the machine would learn what level to put stops at, and where to put take profits. For example, the machine gets input about security ABC and learns the best place to put a stop. It ...
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2answers
89 views

How do we estimate the pre-market opening price?

I am trying to determine how to estimate the pre-market opening price of a stock. Stocks trade in the main session from 9:30 to 16:00, then in after-hours from 16:00 to 20:00. I've always been taught ...
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Am I understanding the math of this futures contract trade correctly?

DISCLAIMER: To be clear, I have zero interest in trading futures. I don't have the knowledge, risk appetite, or capital for that. I'm just asking this to learn. The S&P 500 closed at 3,939.43 on ...
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Will Humbled Trader sessions be profitable?

I am tempted to buy Humbled Trader "premarket daily trading plan and discussion" subscription of Humbled Trader. Question: How profitable is it likely to be, based on the following facts? ...
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1answer
118 views

Should an amateur keep hands off Futures Contracts / Futures Trading?

I am a total beginner in the stock market. I have bought only 1 stock so far, but later sold it with almost 30% profit. Now as a next step, I wanted to increase my profit thanks to the leverage effect ...
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1answer
39 views

What is the purpose of placing a minimum value for Stop Loss for some positions (no shorting, no leverage)?

Nasdaq has just observed (not sure if it is finished yet) a major rotation that led to many stocks to fall (especially tech and "green" ones). As an eToro user, I have noticed that during ...
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What is the best way to interpret changes in Treasury yields?

My question is quick and simple. However, I would like to use this answer to further my understanding of bonds and yields. If the YTM on a 10yr Note yesterday was 1.00% and the YTM on the same 10yr ...
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1answer
95 views

How do stock volatility halts work?

I was watching GME stock on Feb 24, 2021, and it halted twice: once at 3:38pm ET, and it resumed trading at 3:43pm ET again at 3:46pm ET, and it did not resume trading until after 4:00pm ET This is ...
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62 views

IRS Wash Sale Rule: can a single lot be adjusted more than once?

When the only eligible replacement shares for a wash sale basis adjustment have already been adjusted, are they adjusted again? Or is the loss allowed? Example: Suppose this is the entirety of my ...
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Tax for sold mutual funds and stocks in non-retirement accounts for resident aliens on OPT [duplicate]

Tax-residency --> Resident Alien Immigration status --> F1 - OPT There is a similar question here but not the same. My question is: Assume that I sold some mutual funds and stocks, however never ...
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1answer
139 views

Why isn't contango in crypto futures markets simply arbitraged away?

Currently (21-Feb-2021), bitcoin futures markets are in contango, with contracts maturing at the end of June trading at about a 9.1% premium to the spot price. My assumption is that one could purchase ...
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38 views

Does any security market use real-time settlements?

I read on cnbc.com (mirror): Tenev also advocated for real-time settlement instead of two-day settlement in order to help combat some of the chaos that occurred during the GameStop saga. Does any ...
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1answer
50 views

JJN Barclays iPath Bloomberg Nickel Subindex ETN , What happened in 2018 to its price?

What happened to JJN price history? Barclays iPath Bloomberg Nickel Subindex Total Return ETN Series B In January to March 2018? I am trying to understand its price history for analysis, don't see any ...
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40 views

What are some issues with ETN Commodities Indexes?

I am thinking of buying, two ETNs in Commodities Metals (Copper, Nickel). I am curious of risk factors for these. Besides Barclays Bank going bankrupt during a market crash with unsecured ETN debts, ...
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Why i have different historical prices of AAPL between Quandl and Yahoo Finance? How should I behave in cases like this? [duplicate]

I'm a programmer and recently I'm approaching to the world of trading. Now I'm attempting to obtain historical data of AAPL. This is code for obtaining historical data from Quandl: import datetime ...
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1answer
76 views

Why are Short Put option strategy losses said to be unlimited when they are limited by fact that stocks don't fall below zero?

This is really more a question about terminology. In many articles describing synthetic long stock options strategy, losses (on the Short Put leg of the trade) are noted as being "unlimited"....
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282 views

What is the difference between margin trading and short selling?

In margin trading, you borrow money from a broker to purchase securities. In short selling, you borrow securities to sell them. Still, in both cases, you are borrowing from the broker. Is the only ...
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1answer
60 views

Can I reverse flip a bad low win rate trading strategy?

Let's say I have designed a terrible trading strategy with a poor win rate of 20% or less. We are not risking more than 1% in a single trade and an excellent risk management and position sizing are in ...
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30 views

How to compute a funds TER?

I’m getting started with investing and will be starting with ETFs. When searching for how to pick an ETF, a common term comes up: TER. As I understand it, the formula is total fund cost divided by its ...
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How to open up Fidelity Active Trader Pro Account for a contingent

Signing into Fidelity Active Trader pro requires a Fidelity account. But it seems that contingents -- a type of beneficiary -- of a Fidelity account are not allowed to make a separate account. As a ...
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74 views

Bitcoin (for example) to property, avoid cap gains tax in swap?

USA, Say user X on this list has $700,000 worth of bc, paid $100,000. Let's say otherwise X has no assets and only minimal income. If X sells it today for USD, of course pays cap gains on the $600,000....
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265 views

Is losing money on stocks actually simpler than gaining money?

Suppose that I want to invest X amount of cash in stocks, with the goal of doubling the value of my portfolio inside a given time period. This is notoriously hard, in particular there is no full-proof ...
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48 views

Is front-running allowed under PFOF?

I'm reading this introduction to PFOF. https://centerpointsecurities.com/payment-for-order-flow-guide/ It claims that those buying flow are allowed to front-run that flow. For example, if a customer ...
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1answer
93 views

Why does short ratio use “average daily trading volume”?

I understand what short interest is (% of shares borrowed but not covered yet). My understanding is that once a share is borrowed, it can't be borrowed again (legally, anyway). This would lead me to ...
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1answer
160 views

Please explain this put option

Earlier today, I purchased 2 put options on GME. The opening price was around $295. The price dropped $30 in 45 minutes to below $265. Why am I not making any money? I looked at all of the put option ...
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52 views

Are large and frequent moves via rebalancing within a 401k, without cost or penalty?

Example scenario: 300k vested in companies 401k Company provides 10 funds, from low to high risk Each fund has extensive details, that can be used to relate to current market volatility. Company ...
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71 views

Are there any major advantages of selling put options with a longer expiry date?

If I wish to sell put options to collect the premium, are there advantages of setting a time to expiry of 56 days as opposed to 30 days? Does this lower the risk? Here I am considering American style ...
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0answers
50 views

If someone at a hedge fund reveals their firms position to someone else is it illegal to trade on or disseminate the information? [duplicate]

If someone at a hedge fund reveals the details of one of their positions to another person that doesn't work at the firm can the other person trade on, or disseminate, the information? It's not like ...
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1answer
75 views

Can you sell out-of-the-money option on last day of expiration?

I have a $500C Jan 29 GME option expiring tomorrow. I bought it when this contract was at $9.30. If the stock goes to say $400 or $450 tomorrow and the stock price is still under my strike price of $...
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172 views

Can shorting a company's stock lead to said company failing?

So with this whole GameStop issue going on right now one of the common themes I've seen being espoused is that the amateur traders are morally right and the hedge funds who shorted are morally evil, ...
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1answer
75 views

Suggestion for my ETF portfolio to invest in Germany?

Below are my 3 ETFs to invest in Germany via Trade Republic as I will need to pay tax here (first 800 Euro is tax exemption). This is my first time ever to invest in stocks and I will hold it for 5+ ...
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3k views

Why would a financial institution prevent their clients from trading a specific security?

Ameritrade restricts trading of Gamestop: "In the interest of mitigating risk for our company and clients, we have put in place several restrictions on some transactions in $GME [GameStop], $AMC ...
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Why sell a short put at a strike price above current price of the underlying?

I understand that selling a put below the current market value provides: A premium paid up front A chance to buy stock at a lower price Item 1 achieves its maximum gain if the price of the ...
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2k views

How should I handle a request for payment from a bitcoin investment company to recover coins they sent to me that are “stuck in limbo”?

I made a bitcoin investment with a company online. The first return sent back to me was fine but the second has issues. They sent me an email like the first time stating that the money was sent but I ...
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1answer
57 views

Question on Short Call in Options Trading

Say you want to do a short call against a strike price of k, on 100 shares on a stock. Let's say the current price is c. My question is: when you want to actually execute this call on a real platform, ...
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156 views

Trading other people's money with mine

I have created a computer program that looks at many different stock statistics and informs me of which ones I should buy and when I should sell them. I am trading with about $50k and I am achieving a ...
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77 views

what does “Announces Proposed Public Offering of Common Stock” mean?

Sometimes we can get news about "XXX Company Announces Proposed Public Offering of Common Stock". What does that mean? Does it mean the company is in good shape or in a bad situation? Its ...

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