A trader is a professional who buys and sells financial instruments, like stocks and currencies, for clients or firms. They closely monitor stock movements and analyze price fluctuations to make informed decisions. Traders often focus on short-term and long-term trades based on their clients' need...
A financial trader is employed by investment banks, financial planning companies, and brokerage institutions to facilitate the purchase and sale of stocks, bonds, and other types of securities investments. The financial trader job description includes finding and advising clients who want to make ...
Knowing a firm's ticker symbol is vital when it comes to buying or selling shares. If a trading friend talks about a trending stock, and another trader enters the wrong ticker symbol while making a trade, that trader ends up with the wrong asset. That can be a costly mistake. ...
A) Explain why option traders often use spreads instead of simple long or short options and combined positions of options and stock? B) Suppose that an option trader has a call bull spread. The stock Choose a stock that is publicly traded and explain how...
“Intraday” trading: Just like a stock, ETF prices can move during the day and ETFs can be bought and sold during trading hours. For example, a day trader may buy an ETF in the morning, sell it at lunch, and re-buy it in the afternoon. An open-ended mutual fund, on the other ...
A day trader is an investor who uses a type of strategy in which he or she engages in a series of transactions that involve buying...
The definition of a call option is a contract that is sold by one party to another that gives the buyer the right, but not the obligation, to purchase an underlying stock at a specified price, known as the strike price, by an agreed-upon expiration date.
A stock gap is a large jump in a stock's price after the market closes, usually due to some news. When a gap has been filled, this means the stock's price has returned to its "normal" price; the pre-gap price. This happens quite often as the price settles after irrational buying ...
As an example, if a trader is betting that International Business Machines Corp. (IBM) will rise in the future, they might buy a call for a specific month and a particular strike price. For example, a trader is betting that IBM’s stock will rise above $150 by the middle of January....
Let's say the head trader of a mid-sized hedge fund is given a stock order from the portfolio manager. The order is to buy 100,000 shares of ABC stock "best way." Because the head trader knows that ABC is a thinly traded stock and typically trades 150,000 a day on average, they...