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 does demand for stock rise when a company appears to have high future value?

So a company decides to raise money by selling shares of its stock. The stock is offered at an initial price of their determination. The stock is then traded in a market where forces of supply and ...
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Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?

I was reading this article about S&P 500 short ETFs: https://www.zacks.com/stock/news/176217/4-ways-to-short-the-sampp-500-with-etfs and I was confused when it said: "investors should note that ...
glen4096's user avatar
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10 votes
4 answers
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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 ...
pop850's user avatar
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12 votes
5 answers
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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 ...
Iselobhor Hamilton's user avatar
168 votes
11 answers
39k views

Do I make money in the stock market from other people losing money?

Basically I am new to stock trading and neglect to see the differences between trading stocks and betting on sports. Basically I am "betting" on which company will do well, and this can ...
Asleepace's user avatar
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21 votes
5 answers
6k views

What is insider trading exactly?

I know that insider trading is illegal. However, is it true that the CEO of a listed company can still buy/sell their own stock? If he/she does so, isn't that technically insider trading? Or why is it ...
kpt8's user avatar
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15 votes
8 answers
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No transaction fee ETF trades - what's the catch?

I just noticed TD Ameritrade has program where you can trade from a list of ETFs with zero fees. Sounds like it could save me a bit of money, but my cynical side wonders how they make money off such ...
bstpierre's user avatar
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13 votes
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Can we estimate the impact of a large buy order on the share price?

What I am trying to understand is: If we know the number of shares a company trades and the current price of the share, can we estimate what volume of trade that is required to move the share price in ...
Zenil's user avatar
  • 259
6 votes
3 answers
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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, ...
jemy's user avatar
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48 votes
14 answers
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Is it a good idea to copy a trader when investing?

I constantly get bombarded with an etoro commercial on youtube about a feature where you can replicate someone else's trading activity in real time. More details here. You select another trader and ...
Pips's user avatar
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32 votes
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Difference between GOOGL and GOOG

Why are there two ticker symbols for Google — GOOGL and GOOG? They seem to be mostly identical, but their market values are different: currently, 551.64 for GOOGL and 548.79 for GOOG.
Nozdrum's user avatar
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24 votes
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How does a dealer (or market maker) earn the bid-ask spread on a stock?

If I am correct, dealers purchase assets for their own accounts, and later sell them for a profit from their inventory. But the spreads is the difference between buy (or "bid") prices and sell (or "...
Tim's user avatar
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22 votes
7 answers
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Is it true that 90% of investors lose their money?

Many investment gurus state that majority of investors fail and then offer a proven "[insert fancy name] investment strategy" that will make you successful. The number usually starts at 90% and often ...
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15 votes
5 answers
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Can a trade happen "in between" the bid and ask price?

According to Investopedia: By looking for trades that take place in between the bid and ask, you can tell when a strong trend is about to come to an end. This is because these trades are often ...
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12 votes
6 answers
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Layman's guide to getting started with Forex (foreign exchange trading)?

How should I get started with Forex (foreign exchange trading)? How should I prepare myself for it? Please give your answer thinking of me as a layman.
harvardfail's user avatar
5 votes
2 answers
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How does order matching happen in stock exchanges?

When I place my trade order in the stock exchanges, I know the price matching happens and only when there is a buyer and seller at the same price a trade happens. But how does the quantity matching ...
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31 votes
7 answers
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Shares: are they really only for the rich/investors?

I've always been under the impression that if you want to be a player in the "shares game" you either have to be an full time investor, or someone who has a lot of money to play with. Is ...
James's user avatar
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27 votes
10 answers
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Is the stock market a zero-sum game?

In the stock market, over both the short and long-term, does someone necessary need to lose in order for someone else to make a profit? If not, then more fundamentally does something — in the most ...
TheEnvironmentalist's user avatar
20 votes
3 answers
11k views

What happens if I do not honor a futures contract?

I have little knowledge about futures contracts. The recent negative price of crude oil spurred my curiosity about this stuff. I read this post about buying/selling futures contracts. According to ...
William's user avatar
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14 votes
5 answers
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Why can Robinhood offer trading without commissions?

I was wondering why the startup Robinhood can offer free stock trading, while other online stock brokers charge commissions. How is it possible that this is the first initiative that offers this kind ...
Robert Dijkstra's user avatar
8 votes
2 answers
996 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, ...
wfh's user avatar
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7 votes
3 answers
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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 Monday,...
M.K. Safi's user avatar
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6 votes
9 answers
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Are stories of turning a few thousands into millions by trading stocks real?

I've seen stories on the internet, people got rich from only a few thousands by trading stocks. I've seen some trading academies claim offering courses that can help you to make a living by just ...
s-hunter's user avatar
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2 answers
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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 ...
Matt Chambers's user avatar
-2 votes
2 answers
967 views

Forex trading gone wrong?

I started forex trading a month ago and profits are like very high, I went from 120$ to 2500$! And I am finding it quite easy actually.. People everywhere are saying 90% traders fail etc etc so what ...
Ali Asheer's user avatar
40 votes
6 answers
66k views

Maker taker fees - can somebody explain in plain english?

I'm interested in learning about how trading works, but this is all very new to me so bear with me. (I'm just poking around at this point, obviously nowhere near ready to actually be trading) Some ...
user41221's user avatar
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27 votes
13 answers
21k views

Should I sell my stocks when the stock hits a 52-week high in order to "Buy Low, Sell High"?

I have a 10 stock portfolio and considering market conditions that are on the rise when this question in being asked, a few of them did hit their 52-week high price. I would like to call myself a ...
Lost's user avatar
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27 votes
2 answers
6k views

How far removed from source does one need to be to avoid Insider Trading?

As I tried to research and ponder this question, I couldn't help but wonder: How many steps (i.e., persons) removed does one need to be from a source of material/non-public information regarding a ...
theforestecologist's user avatar
27 votes
4 answers
15k views

What is the meaning of "short selling" or "going short" a stock?

Can someone please explain the meaning of 'shorting' a stock with an example?
Amir's user avatar
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26 votes
2 answers
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How do I bet that a stock price will not move?

If I believe a stock will go up, I buy the stock. If I believe a stock will go down, I short the stock. If I believe a stock will neither go up nor down, what do I do? How do I profit from a non-...
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4 answers
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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&...
nonopolarity's user avatar
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13 votes
4 answers
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How to learn about doing technical analysis? Any suggested programs or tools that teach it?

I've been going through the OIC Education Courses recommended by @jaydles in another question about learning options. I'm about halfway through, I've learned a lot about how the stock market works ...
Shane's user avatar
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13 votes
5 answers
68k views

Consequences of buying/selling a large number of shares for a low volume stock?

Out of curiosity, I've casually followed some penny stocks that trade for under a dollar a share, and find occasional swings up of 10-15%. One naive interpretation of this fact is that if I bought $...
Chelonian's user avatar
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13 votes
4 answers
3k views

Can I buy stocks directly from a public company?

Is it possible to buy stock directly from a public company, bypassing a broker? It seems that discount brokers do nothing more than facilitate a trade and take a cut - I'd like to eliminate the ...
Jesse's user avatar
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13 votes
3 answers
2k views

What are the cons to using a brokerage account for day to day banking?

I've noticed (for awhile now) that my online discount brokerage account carries many features of a traditional bank account: Online bill pay Direct Deposit Checks ATM Card FDIC or SIPC coverage Cash ...
pilotcam's user avatar
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12 votes
5 answers
39k views

Does a market maker sell (buy) at a bid or ask price?

From Fool.com: How Are Stock Prices "Set"?: Assume you want to sell some of your shares of EVE at the current "market" price. The lowest ask price from sellers is $16.00. The ...
Tim's user avatar
  • 5,883
11 votes
4 answers
12k views

Is it bad practice to invest in stocks that fluctuate by single points throughout the day?

It seems like a no-brainer to me: Find a cheap stock with a good name (Dell, FB, Sony) that fluctuates by a few dollars per day (between -$2 and +$2), and is consistent in the fluctuation throughout ...
TheOne's user avatar
  • 341
11 votes
4 answers
33k views

Data source for historical intra-day bid/ask price data for stocks? [closed]

Is there any place to get historical intra-day bid/ask data for stocks? (i.e. pricing information for throughout the trading day, rather than end-of-day prices only?) Does anyone even keep this data ...
Justin Ohms's user avatar
10 votes
8 answers
20k 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 $76....
AM_Hawk's user avatar
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9 votes
2 answers
71k views

I plan on receiving a $200,000 personal loan via wire transfer. Do I have to report this to the IRS?

After researching online, I found many websites that said wire transfers are not reported to the IRS, but others said that they were reported. I just want to make sure that I do not have to pay taxes ...
darga33's user avatar
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9 votes
5 answers
9k views

Why is the bid-ask spread considered a cost?

I know the obvious costs of trading stocks, like commissions, fees and taxes. But I also hear people saying the bid ask spread is part of the transaction cost. Why is this the case? One of the ...
zsljulius's user avatar
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8 votes
2 answers
340 views

Does an Executed Limit Order Imply a Spot Price?

Suppose I place a limit buy order at $10.00 per share for company XYZ on the NYSE or Nasdaq, while the spot price is say $10.25. If my limit order subsequently executes (whether 5 minutes later or 5 ...
DuckMaestro's user avatar
8 votes
3 answers
36k views

Is Stock Trading legal for a student on F-1 Visa in USA? [duplicate]

I'm an international student in US on F1 Visa. I just want to know if how legal is trading stocks on my visa status. I've found some posts on quora that say Trading is completely legal, but should not ...
Aditya Vikas Devarapalli's user avatar
7 votes
7 answers
17k views

Is candlestick charting an effective trading tool in timing the markets?

In the world of technical analysis, is candlestick charting an effective trading tool in timing the markets? If used correctly, how accurate can they be in picking turning points in the market?
Victor's user avatar
  • 21k
6 votes
2 answers
1k views

What exactly happens during a settlement period?

As I understand it, the settlement date is the date when ownership of an asset is officially transferred to a buyer. I do not understand why this is not, generally, equal to the transaction date. It ...
Jake's user avatar
  • 309
6 votes
3 answers
3k views

If the spread goes to the market-maker, is the market-maker the exchange?

I understand that the bid-ask spread is the difference between the price a buyer is willing to pay and the price a seller is willing to take for an asset. I also understand that this difference goes ...
Kinnard Hockenhull's user avatar
5 votes
1 answer
2k 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 ...
puzzled's user avatar
  • 1,016
5 votes
4 answers
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If I buy a share from myself at a higher price, will that drive the price up so I can sell all my shares the higher price?

Suppose I buy 100 shares of Apple at $200 and I want to increase the share price. If I sell 1 share at $210, and at the same time log in to buy the share at $210, will the share price increase to $210 ...
PreeDen's user avatar
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5 votes
3 answers
4k views

What happens if my order exceeds the bid or ask sizes?

What will happen if my order exceeds the bid or ask size? For example, if the bid or ask is 100 shares, but I want to buy 100,000 shares, is it possible to do so?
MIKE's user avatar
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5 votes
2 answers
11k views

How does anyone make significant money on very low volume stocks?

After getting some answers to a related question, I thought I'd post a follow-up. It seems that if there is a low-volume stock, even with significant daily swings in stock price (e.g. 10-15%), one ...
Chelonian's user avatar
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