Option& Stocks Flashcards
1
Q
What are ETF’s?
A
Exchange Traded Funds, like the SPF 500
2
Q
How do you keep from destroying your account?
A
Always use Stop Losses
3
Q
What is trading on the mark?
A
Trading between the bid and ask
4
Q
Bid?
A
The highest price a buyer will pay
5
Q
Ask?
A
The lowest price a seller will sell
6
Q
What is a pattern day trader?
A
This is only for margin accounts 3 same days per week
7
Q
OTC
A
Over the Counter, pink sheets, volatile
8
Q
Small Float
A
Not many options available to public
9
Q
All or nothing trade
A
Fulfill all shares or none at a specific price
10
Q
What 3 things should you always have in mind when making a trade
A
Buy In, stop loss and sell point
11
Q
GTC
A
Good to Cancell
12
Q
Calls
A
The right to buy
13
Q
Puts
A
The right to sell
14
Q
BTO
A
Buying to Open
15
Q
IV
A
Implied Volatility
