If you’re wondering, “What is day trading, and how does it work?” or thinking of giving it a try, getting the basics down is the right first step. Let’s explore how this fast-paced trading style works. What is day trading, and how does it work? Day trading involves buying and...
Yes, commodity trading is a legal practice in the UK. However, brokers without approval from the Financial Conduct Authority (FCA) may not practice in the UK. As a trader in the UK, it is your responsibility to ensure that you only transact commodities with brokers accessible from the UK....
Yet there are differences between a pattern trader and a day trader. Pattern traders typically hold their positions over a few days up to several weeks. On the other hand, day traders close their positions within the same trading day. Based on the frequency of transactions, day traders would ...
If you’re interested in the idea but unsure of how to become a day trader, we’ll take you through the steps. We spoke with experts about the perks and perils of day trading, and they shared insights on how someone can break into the job. What is day trading, and how does it wor...
Tips for Managing Taxes as a Forex Trader When it comes to forex taxation, there are a few habits you can adopt that will keep you in good standing with the IRS: Mind the Deadline In most cases, you are required to select a type of tax situation by Jan. 1. If you are a new tr...
Do I need to tell HMRC if I freelance as a second job? Most people who freelance as a second job do so as a “sole trader”, which is simply another term for being self-employed. You can be employed for your day job and self-employed as a freelance in your spare time, it’s pe...
Contracts for difference (CFDs) are popular with day traders looking to trade at low cost and with leverage to maximize profits. CFDs are high-risk, high-return derivatives whereby the trader does not own the underlying asset they are speculating on. ...
What is a Roth 401(k) and how does it work? A Roth 401(k) is a tax-advantaged retirement plan offered through your employer. You contribute money to the account through withdrawals from your paycheck, and that money can be put into investment funds consisting of stocks, bonds and other...
So how much does claiming a stock loss save you on your taxes? The answer to that question depends on your tax bracket and whether your loss is offsetting a taxable gain or ordinary income: If you’re offsetting a taxable gain with a loss, then you’re saving the tax on the gains tha...
This would be the exit point for the trader, who not only qualified for the dividend but also realized a capital gain. Unfortunately, this scenario does not consistently occur, but it does show why the strategy is in use. Tax Implications of Dividend Capture Strategies Qualified dividends ...