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

Can you get insurance on a leveraged trade

The number one rule in trading is to set a stop loss. However, unless you are in the top minority of traders, there's a good chance you'll set a stop loss that gets hit even on a winning trade. I'm ...
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37 views

What is happening during the maintenance hour of E-Mini S&P 500?

I'm trying to better understand the trading hours of the E-mini 500 S&P, which according to the CME Groups web pages are shown like this: This is, however, rather incomprehensible for anyone non-...
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24 views

Injecting month variable on tradingview pinescript into security function [closed]

This compiles fine datecode="0625" exchange="FTX:BTC"+datecode+"USD" But if I want to do this it doesn't compile. =month returns 6 so I have to put a zero in front of it. But now datecode needs to ...
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1answer
76 views

What do I get from reading “Reminiscences of a Stock Operator”?

Reminiscences of a Stock Operator by Edwin Lefèvre seems to be a classic book about trading. It appears to be a biography of Jesse Livermore that was written nearly 100 years ago. I have not read it, ...
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74 views

I bought an option it has a volume of 3 it expires two weeks from the purchase date it jumped 650% and drops then rises even higher

I bought 5 options contracts. It goes from being worth $125 then shoots up to over $1,000 then decreases in value when I try to sell. I tried to sell three times while it had a 552% increase, but it ...
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2answers
27 views

On balance volume indicator showing different signal on different time frames

I'm watching the OBV (tradingview) on my tickers, and I'm puzzled as to why it shows completely different trends and signals depending on the time frame I pick. I'm talking about forensics on a given ...
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1answer
44 views

How can I build a moving average for individual trades?

I am familiar with building moving averages (whether SMA or EMA) from candle/OHLC data or indeed from a ticker which reports the price at a fixed interval. But I would like to extend this to a raw ...
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21 views

Futures Calendar Spread Quote Convention

Hoping to get this question answered on SExch so I don't have to ask someone on the Desk and betray my ignorance. Trading a Calendar Spread in equity derivatives involves selling/buying the near/far ...
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1answer
89 views

Choosing the proper order type to preserve profits on crypto exchanges

I bought ETH at approx. 1700. It went to 1800. I wanted to preserve my gains and created a LIMIT order. My thoughts that if the price "came back the other way", then it would hit the LIMIT ...
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2answers
43 views

Can mere expectations affect oil spot price?

For example if confirmed information spread today that for some reason oil producers will increase their supply one month later, will this affect oil spot prices immediately like what happens in ...
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84 views

Backtesting: how to separate the predictive power of a trading strategy from the market trend

I noticed that some traders use backtesting to evaluate their trading strategies. What I don't understand is: how do they separate the predictive power of their trading strategy from the general ...
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How do you overcome the boredom (and loneliness) of Forex day trading? [closed]

I have two trading plans which I use to day trade in the Forex market for 2 hours a day (8-10 am UK time). Usually I will have between 2-4 valid trading signals each day. I have made more than 80 ...
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9answers
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What is the point of using a limit order?

I'm pretty new to trading, more specifically day-trading, and on my paper trading account, I am given the option to trade at the market's current value vs. putting in a limit order. I could understand ...
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23 views

How does Limit order book works in the following hypothetical scenarios? [duplicate]

I’m a beginner to trading and reading some stuff about Limit & Market orders. I’ve thought up some scenarios and I would like to confirm on how the underlying order book mechanism deals with them. ...
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1answer
36 views

Is using proceeds from a short sell or put option to cover the cost of excercising a call option considered freeriding?

I heard that freeriding is not having the cash to pay for the underlying shares when a call option is exercised. If I purchase a call option that is ITM and (purchase a put OR short sell) above the ...
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2answers
70 views

Is zero commission stock trading dependent on payment for order flow?

All zero commission stock brokerage firms I have looked at are able to offer zero commissions because of payment for order flow (PFOF). Is PFOF a necessary component of zero commission stock trading, ...
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43 views

Where the IPO can be acquired? [duplicate]

I saw that the IPO have the higher probability for profit. The problem is where to buy it. Thanks in advance !
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40 views

Why do some trading terminals use a reverse order book?

I do not know what this is connected with, but I noticed that in terminals that are sharpened for stocks, futures and other stock markets, direct order books are used but in foreign exchange ...
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6answers
7k views

Why don't traders place limit orders at all prices to be first in line when the price moves?

In markets with price-time priority, why don't traders enter limit orders at all prices, so that they could be first in line when the price moves? For example, if the current best bid is $10 and the ...
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77 views

What do you call bets where you can trade and cash out early? [closed]

What do you call bets where you can trade and cash out early? For example, recently I saw an Olympics2021 bet, where the current "share" price for the bet is $0.70 and will "expire"...
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5answers
146 views

Is backtesting only for disproving trading strategies rather than “proving” them?

I sometimes read articles where author X presents a new trading strategy, and then shows backtest results to "prove" that the trading strategy was more profitable than some chosen benchmark. ...
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2answers
198 views

Trading strategy with high probability of small profits and low probability of complete loss

What are some trading strategies that have high probability of small profits and low probability of catastrophic loss? I believe there is an academic term to describe a trading system that shows small ...
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65 views

Market neutral strategy with leverage and perpetual swaps?

What is a "perpetual swap"? In cryptocurrency exchanges, there is a financial product called "perpetual swap". (It is also called as "perpetual futures" or "...
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1answer
51 views

Which is the spread fee formula in eToro? [closed]

In their official website (in a pdf fees document), the equation they mentioned does not match reality (depending on my practice with their demo trading account), nor logic. My equation is: spread fee ...
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1answer
125 views

What is “trading for liquidity reasons”?

In this paper, it says: For example, routine sells by insiders are commonplace in the market, and can be driven by diversification or liquidity reasons ... What exactly does “trading for liquidity ...
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1answer
58 views

Given a tax advantage account and a non-tax advantage account, should trades be concentrated in the tax advantage account?

TL;DR: If my investing strategy is a mix of ETFs (50% value, rarely traded) and stocks (50% value, more frequently traded), is it advantageous to do the stocks trading in the tax advantage account and ...
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69 views

What are SEC issues I should know about when using my automatic stock trading software?

I created software that does automatic stock buying and selling through Interactive Brokers' web/API. Does the SEC regulate this?
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2answers
70 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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2answers
236 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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40 views

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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4answers
7k views

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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3answers
121 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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1answer
45 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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2answers
113 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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112 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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41 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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45 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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1answer
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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96 views

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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34 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
159 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
98 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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87 views

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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3answers
5k views

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
137 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
40 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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53 views

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
105 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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83 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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