FAQ

Frequently Asked Questions about Trading

What is a Basis Point?


Definition of a Basis Point: A commonly used financial jargon in describing interest rates or forex trading price movements

In financial terms, a basis point is one percent or one hundred pips. For example, having a quote of 1.3493 EUR/USD - to move one basis point the currency would need to increase by 100 pips. So a move from 1.3493 to 1.3593 would be a move by one basis point.

What are Pips?


What is the definition of a pip? A term commonly used on forex trading

In forex trading, a PIP is the abbreviation of "Price Interest Points." Most traders measure their forex trading profits by counting pips. One pip is one-hundredth (1/100) of one percent (1%) of a currency contract price. For example, if the AUD/USD currency pair was to move by one pip the price movement could be from 0.7483 to 0.7484.

Is Share Trading Gambling?


Marco tries to Answer Whether or Not Share Trading is Glorified Gambling or a True Profession?

Is share trading a gambling activity? The Australian Pocket Oxford Dictionary defines gambling as to 'play games of chance for money'. It also defines gambling as to 'risk much in the hope of great gain'. Now, old George doesn't think share trading is gambling. In that post, he says, "You used technical indicators to tell you that the balance of probability lies in your court and if it doesn't - well you must quickly initiate risk management and cut losses." A statement that contradicts our dictionary definition. So some people classify share trading as "glorified gambling." Well, if you stick to the genuine definition of gambling, share trading IS gambling. Personally, I was in denial with this for a long time. Every time someone brought up share trading and gambling I would refuse to believe it was. But surely there's more to this argument...?

Difference between a Bubble and a Boom


What's the difference between a bubble and a boom? Earnings

What's the difference between a bubble and a boom?

The answer is earnings. In a bubble there are no earnings, in a boom there are earnings. The tech boom was a bubble, and the resources boom is a boom, but only in the resources stocks that are earning the earnings!

What was the biggest investment one ever did in percentage or could've done?


Biggest investment in % or could've done? need some clarification in what you want to know.

What was the biggest investment one ever did in percentage or could've done?

In my mind, the company that has had a big investment is Berkshire Hathaway but not only stocks!

Biggest investment in % or could've done? need some clarification in what you want to know.
The investment banks are almost always the largest holders of stock of companies.

Share (Stock) Trading as a Home Business


Trading stocks and forex is a job. And can ba a successful home based business

For anyone who has started their own home business or made a career for themself at home. I am interested in starting a business or finding something that I can do from my home, possible using the computer. I have not come up with an idea yet. But I'd like to hear from anyone who has done something like this and hear what you think about working from home. Are you/have you been successful? I am NOT out to "steal" anyones business idea, so you don't have to share exactly what you do, if you do not want to. Just curious if I should do it or not.

Best place to go to learn how to invest in the stock market


Recommend you start your learning by looking up best sellers in the investment genre and then go to a bookshop

Where is the best place to go to learn how to invest in the stock market?

I would like to know how to understand the stock market and how to use it to my advantage. Where would be the best place to begin learning about this subject and then learning how to apply it without destroying my financial future.

I'm a trader - I earn a living trading the markets. But for investors its a whole different world. Investors have totally different goals to traders.

Which site gives real-time data of world economic news announcement


news.google.com should do it since they aggregate all their news sources

Please tell me which site gives real-time data of world economic news announcement? e.g GDP, CPI?

The spot forex is news driven,which site gives instant world economic news releases? Like unemployment rate, CPI, interest rate, GDP news releases

news.google.com should do it since they aggregate all their news sources.

BUT if you really want to know... you need a reuters box or a bloomberg box - just like what the professionals use.

How are the number of shares a company has determined?


The number of shares is determined by the number of stocks issued at IPO

How are the number of shares a company has determined?

Bill Gates is said to have a billion shares of Microsoft stock...of course since he owns the company and at roughly $25 a share he is a billionaire. But this is only because someone has detemined that Microsoft has over a billion shares. How do they get that number?

The number of shares is determined by the number of stocks issued at IPO and any other further offerings after the IPO depending on the companys' needs.

How to get started in playing the stock market?


You are young - so I guess you have a riskier trading profile than older people - And please don't call it "playing".

I am a 17 year old teenager and i want some tips on how to get started in playing the stock market?

You are young - so I guess you have a riskier trading profile than older people. You have the time to earn back money you lose - so perhaps most of your "playing" would be high risk high return ventures / trading. Have a look at CFDs (http://www.mysharetrading.com/trading-topics/derivatives-cfds) and other derivatives for a little leverage.

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