Basic Questions:
Q:
What is day trading?
A: Day trading refers to
the practice of buying and selling financial
instruments within the same trading day
such that all positions will usually (not
necessarily always) be closed before the
market close of the trading day. Traders
that participate in day trading are called
day traders.
Q:
What are futures?
A: Futures markets are
the most popular day trading markets. They
offer a wide variety of markets, can be
traded at very low cost (i.e. low commission),
and do not have any day trading restrictions
like stocks.
Futures markets are traded at futures exchanges
like the DTB (Deutsche Boerse) in Europe,
and Globex (Chicago Mercantile Exchange)
in the US.
Q:
What are options?
A: An option is a contract
that gives the buyer the right, but not
the obligation, to buy or sell an underlying
asset at a specific price on or before a
certain date. An option, just like a stock
or bond, is a security. It is also a binding
contract with strictly defined terms and
properties.
Q:
What is the forex?
A: The foreign exchange
market, often referred to as forex, is the
market for the various currencies of the
world. It is a market which, at its core,
is rooted in global trade. Goods and services
are exchanged 24 hours a day all over the
world. Those transactions done across national
borders require payments in non-domestic
currencies.
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