If the SPX rises by 50 points, that could potentially be a $250 gain. A 50-point drop could mean a $250 loss. Note: An account may need more cash to maintain the position. This is known as maintenance margin, and the amount needed for maintenance margin can be found on the CME Gro...
After you've decided on your trading style, you'll need to find a good online broker and open an account. You'll want a platform that caters to your needs. Brokerages have different features and tools, and some are more suitable for your type of trading than others. Brokerages for Day...
In theory, that means there's no upper limit to the dollar amount needed to replace the borrowed shares. It also means there's no guarantee the broker can continue to maintain a short position for any period of time and may close out the position without regard for loss or profit. Margin...
Focus on trading patterns that offer trades with a reward to risk ratio of greater than 2:1, based on the target and stop loss. In the example, the target is 4 points above the entry price, while the stop loss is 3.25 away from the entry price (if placed at $2,063, just below ...
For example, TD Ameritrade's paperMoney® was designed to help customers try options and differentinvestment strategieswithout the worry of losing any money.1Nearly everything about the simulator was the same as their feature-rich thinkorswim trading platform, except the investor was not trading re...
“Holly AI,” is designed to scan through a comprehensive list of stocks, using pre-set trading strategies to conduct real trades on the user’s behalf. Although these automated trades should still be monitored, taking advantage of Holly AI alleviates a lot of the work involved with daily ...
While the capital required to enter a derivatives position (like the margin in a futures contract or the premium in an options contract) may be just a fraction of the notional value, the potential profit or loss from price movements is based on this larger notional amount. As such, the not...
For example, if you have a stop loss at $100, but the market gapped down lower and opened at $90 the next day, that’s a slippage of $10. #2: How do you filter and scan for US stocks as part of your trading plan? You can use a scanner like the one Thinkorswim’s platform,...
Check futures: Markets never really stop trading. Futures on major U.S. stock indexes, individual stocks, and commodities and currencies trade most of the night. When you get up in the morning, one of the first things you may want to do is log in to thinkorswim to figure out where the...
Lack of downside protection: Stop-loss orders—which can automatically close out losing positions before they become even bigger losers—aren't available for OTC trading. How to proceed While there are traders who flourish in OTC markets, they're a rare breed. I myself have adopted three gui...