Table of contents Key Differences Between Day Trading and Swing Trading Holding Period Time Commitment & Schedule Trade Frequency & Volume Capital Requirements & Broker Rules Pros of Day Trading vs. Swing Trading Day Trading Pros Swing Trading Pros Which Style Suits Which Type of Trader? Choose Day Trading If Choose Swing Trading If My […]
Regular trading sessions for stocks and options is 9:30 a.m. to 4 p.m. EST, however, there are some exceptions on certain options. But first, let’s dig into what options are and how they work. For a deeper dive into options, you can also check out our Options Trading Guide. Intro Retail traders and institutional […]
A question we are asked time and again by students is, “Should I trade options if I have a small account?” Options trading is not quite the same as trading stocks and carry some unique risks that we’ll cover below. In this article, we are going to take a look at what options are, […]
Wall Street traders are witnessing one of the craziest battles in years as GameStop (NYSE: GME) and other heavily shorted stocks continue to experience breathtaking volatility due to a “David and Goliath” war between hedge funds and a growing community of day traders on social media website Reddit. Shares of GameStop have skyrocketed to unbelievable levels […]
Introduction to Options Every options contract has two sides–the buyer and the writer. You’re likely familiar with how buying an option works. You buy the right, but not the obligation to buy or sell a stock by a specified date, at a specified price. But someone has to sell that right, and that’s the option […]
While day trading stocks can potentially lead to big profits, options are an ideal way to control a large chunk of shares without having to put up the funds necessary to own stocks of bigger companies and can actually help protect or hedge your stock investments. This article will prepare you to effectively use […]
You may have heard that trading stock options can be worth a lot of money when used correctly, and it is certainly true. But do you really know how stock options work? Or what a stock option is? Do you know what it mean to exercise options? Do you know the difference between exercising calls […]
Figuring out the value of a stock or bond is a pretty straightforward problem. For stocks, the price of the shares is directly tied to the underlying value of the company. Successful companies that project strong forward sales growth will be rewarded with a high valuation and rising share prices. For companies bogged down […]
Many novice options traders are initially confused by the difference between the options on cash indices like SPX and the options traded on stocks and ETFs like AAPL or SPY. After all, you can’t trade indices like SPX on the stock market. It’s just an index! So let’s settle a few differences. Firstly, why […]
What Are Stock Options? Isn’t it nice having options? If you’re hungry, you have a wide variety of restaurants to choose from. If you want to buy a car, you have different makers producing different models with an endless array of upgrades. It’s true that too many choices can sometimes cause paralysis by analysis, […]
