Introduction to Options Every options contract has two sides–the buyer and the writer. You’re likely familiar with how buying an option works. You buy the right, but not the obligation to buy or sell a stock by a specified date, at a specified price. But someone has to sell that right, and that’s the option […]
What is the National Best Bid and Offer The Code of Federal Regulations defines the National Best Bid and Offer (NBBO) as: “National best bid and national best offer means, with respect to quotations for an NMS Security, the best bid and best offer for such security that are calculated and disseminated on a current […]
Coinbase, the leading cryptocurrency exchange, confidentially filed for an IPO in December. If you don’t know what Coinbase is, it’s the most popular place for retail traders and investors to buy mainstream cryptocurrencies like Bitcoin and Ethereum. The process is meant to be as easy as possible, and Coinbase’s high fees reflect that. The […]
When trading stocks on a brokerage platform, there are a variety of stock order types you can use. Some order types are executed immediately, while others can only be executed at a specific price or time. It is therefore very important to familiarize yourself with the most popular types of stock orders and how […]
So what’s the difference with large cap vs small cap stocks? Quite a bit actually! In this article, we will help shed light on market capitalization, differences between large and small cap stocks, and things to consider when trading both types. What is Market Cap? Market cap is a measure of a company’s value […]
An iceberg order is an order type that allows you to conceal the true size of your order. These orders are increasingly common in today’s market as almost everyone has access to them. The idea is that instead of displaying your entire order (which might have a significant market impact), you display a comparatively […]
The immediate or cancel order is an order type with instructions to fill the order immediately and any part that isn’t will be canceled. Immediate-or-cancel orders instruct your broker to fill your order immediately or cancel the order. It’s a liquidity-removing order duration preference similar to the “fill-or-kill order,” the only difference being that […]
You ever wonder why there are giant spikes of volume during the last minute of trading but little price change? That’s the closing auction and is the period of highest liquidity during the stock market session mainly because of the market on closer order. It’s where most investment funds, end-of-day algorithmic traders, and index […]
Day traders usually focus on maximining their trading profits, and moving averages are one of the technical analysis tools some of them use to achieve that goal. Moving averages are applied to help determine trend direction, strength, and to find entry and exit points. They can also be used with other indicators to create […]
Macroeconomic indicators give you a big picture on the health of the economy, but why is that important and how can you use them? Below we’ll look at some peculiar macroeconomic indicators in different industries that help gauge market strengths and weaknesses. The Texas Ratio The Texas Ratio is a quick and dirty accounting ratio […]
