What is day trading? Am I allowed to day trade?

Day trading is when you are able to buy and sell the same stock on the same day. Keep in mind that such frequent trading will generate lots of commission charges and that you are limited to a certain number of trades for the Challenge. Whether day trading is allowed is dependent on the tournament you Read More…

               

Restricted Funds are set aside when you place any limit orders that are not immediately filled. The funds are needed in the event that your limit price is met and triggers the action you requested. When your limit order is filled, the restricted funds are used to complete the transaction. Restricted funds are also created Read More…

               

What is a “Mutual Fund”?

Mutual funds are a professionally managed type of collective investment portfolio that pools money from many investors and invests it in stocks, bonds or other securities. The mutual fund is operated by a fund manager that trades the pooled money on a regular basis.

               

What is a “Stock”?

Companies initially raise money by selling their stock. A share of stock represents fractional ownership of a business. When you buy shares of stock in a company, you are buying a small fraction of the business and all the profits that go along with it. For example, if ABC Company needed to raise $1,000,000 they Read More…

               

How does one decide which stock to buy or sell?

A wise investor will always conduct some type of analysis before making an investment — acting on hot tips or blindly following the crowd rarely pays off. A great to start is to look around and observe the spending habits of their families, friends and even themselves—what are they buying? Are they buying more than they Read More…

               

Everyone has heard the old adage “Buy low and sell high.” When a trader buys a stock, he is said to have a “long” position. He is “long” because he believes the stock price is going higher. This is also known as being “Bullish” or a ‘Bull” on the market. Conversely, a trader can also Read More…

               

What is a “Bid/Ask”?

The stock exchanges provide the valuable service of bringing together all of the buyers and the sellers of stocks each day and matching the buyers and sellers that agree on a price. The exchanges keep track of all of the open orders and show the highest buy order price as the “bid price” and show Read More…

               

What is a “Market Order”?

A market order is an order to buy or sell a specified number of shares (or bonds, etc. ) at the best available price when the order is submitted. All orders that don’t bear a specific price are considered market orders. Market orders placed while the markets are closed or before the market opens will Read More…

               

What is a “Limit Order”?

A limit order is an order in which a specific price is set to buy or sell a security. If the price point is hit and there is sufficient volume at that price point or better, your order will be filled.  Limit orders may be placed as “Day” orders which are good for the day Read More…

               

What is a “Stop Order”?

A stop order is an order to buy or sell a stock when the stock price reaches a specified price, which is known as a stop price. When the specified price is reached, the stop order becomes a market order. (a)  A Sell Stop Order is used by investors and traders long a stock to Read More…

               

What is an “Open Order”?

A market order that was placed when the market was closed and has not filled yet, or a limit/stop order that has been placed but the price has not been met yet and therefore has not executed yet is called an open order.

               

What time is the US market open?

The North-American stock market opens at 9:30AM EST and closes at 4:00PM EST. Any trade made when markets are closed will be processed the next business day. This is only true for stocks, bonds and mutual funds. Futures trade at different times. Markets are CLOSED for these Federal Holidays in the U.S.: New Year’s Day, Read More…