In cash trades, you buy the stocks outright with cash and hence, it is important to have enough money in your brokerage accounts. On the other hand, if you are using margin accounts to day trade, your brokerage firm will lend you the stocks for a fee (interest). In such trades, you...
Most money managers think their main job is generating alpha, but they are wrong. We discuss the real "job to be done" of an investment manager.
Current market prices can be found on the provider website. The drawbacks of the Pepperstone demo account are that it expires after 30-days and is limited to 50 trades at a time. On the plus side, it’s possible to open more than one demo account at a time. Clients with live funded...
Trades don’t last forever: there’s a standoff and an awkward pause. The lowest sellers want$201, and the highest bidder wants$199; this$2 gap is calledthe spread. Thelast priceof a transaction was$200. Now what happens? Buyers and sellers can do: ...
Dividend yield is a useful metric when applied appropriately, and when the time is taken to understand whether the company behind the payout is able to keep paying it. Here are a few examples of how dividend yield can be useful. Income investors, or people looking at their investment portfol...
For example, if you have an ETF with a 0.18% expense ratio on a $1,000 investment, you're paying $1.80 in fees a year. Because of an ETF's structure, their administrative costs tend to be less than those of like mutual funds.3 Easily tradeable ETFs are listed on public exchanges,...
The volume of trade is the amount of futures contracts or the total number of securities that are being traded in a specific...
Equity Market:Stock exchanges like the NYSE and Nasdaq are the most visible part of secondary markets. Here, public companies' stocks trade hands rapidly. Beyond these major exchanges, over-the-counter OTC markets handle trades in smaller or less liquid stocks.Dark pools, private exchanges for tr...
It’s important for you, as the consumer, to understand what your planner recommends and why. You should not follow an advisor’s recommendations unquestioningly; it’s your money, and you should understand how it’s being deployed. Keep a close eye on the fees you are paying—both to yo...
What's more, although fee-only professionals have no incentive to engage in churning, brokerage commissions are not eliminated. Investors still will pay a brokerage firm to make trades. The brokerage may charge custodial fees for accounts as well. ...