Over recent years traders have started hearing about a new trading product, but there are many questions and concerns about what they are and how they work. Binary Options are a type of derivative that are considered an “all-or-nothing” asset and is comparable to placing a bet on a sports game. When you purchase a Binary […]
Proprietary trading occurs when a company risks their own capital to trade stocks, currencies, commodities or other financial instruments for financial gain. This is different than hedge funds or investment firms that trade on behalf of their clients and make money through commission, profit sharing and fees. Most proprietary trading occurs at big banks and […]
According to the SEC, penny stocks are considered to be any stock trading below $5 per share whether they are listed on an exchange or trading through the Over The Counter Bulletin Board (OTCBB) or pink sheet markets. Penny stocks, often referred to as microcap or even nanocap stocks, are usually smaller or newer companies with […]
Floor trader pivots are one of the more popular pivot levels for active traders and are commonly used by floor traders in the trading pits. The pivot points are calculated by using the previous days high, low and closing prices for establishing key intraday resistance and support levels. There are tons of pivot calculators that can […]
Gaps form on charts when there is a big price movement with no trading in between. This usually happens over night when news comes in and pushes the prices of a stock higher or lower than the previous days close. This is caused by a major difference in supply or demand usually caused by a […]
The Dow Jones Industrial Average, also referred to as the DJIA or more commonly the Dow Jones, is a price-average index of 30 different stocks that trade on the New York Stock Exchange and on the NASDAQ. It contains mostly blue-chip companies from the stock market that have a large market cap. The Dow Jones […]
An Initial Public Offering, more commonly know as an IPO, is a term used for when a private company issues shares for the first time to the public. Generally companies that are completing an IPO are seeking capital to fund growth initiatives and in return, investors will receive equity in the company with hopes of […]
Margin Account is a type of brokerage account that allows you to buy stock on margin by borrowing money through your broker. Generally there is an application process that has to be approved by the broker to ensure you are eligible for a margin account. For margin accounts, there is an account minimum of $2,000 […]
High Frequency Trading (HFT) is when a trader or institutions utilizes technology and powerful computers to automate trading and execute large orders at very high speeds through the use of algorithms. Their super computers are able to scan the stock market in seconds looking for ideal trading scenarios which gives them a big advantage over retail […]
When opening a brokerage account you have the option to open different types of accounts depending on what you are looking to do. You can open a joint account, individual account, cash account, margin account and many others but the one we are going to talk about today is the cash account. It’s a simple […]
