Trading

I just bought a security in my cash account. How soon can I sell it?

Cash accounts are required to abide by industry-wide settlement rules that were established through Regulation T of the Securities and Exchange Act of 1934. These rules dictate that cash proceeds from Stock, ETF, and mutual fund trades will settle on the third business day after the trade date. Option trades, on the other hand, will […]

Trading

How To Trade Stocks and Options Online

The advent of online trading has opened a new world for investors. Trading stocks and options online can provide you a lot of flexibility at a lower overall cost compared to a traditional stock broker. In the past, the main way to research a stock was to try to squeeze the information out of your […]

Options

Trading Options In An IRA

Interested in trading options in your individual retirement account (IRA)? You've come to the right place. Ally Invest combines a powerful online trading platform with highly rated customer service and easy-to-understand options investing education for beginning and advanced traders alike. If you're ready to start investing money for your retirement, your first move may be […]

Trading

Buy stocks online without the need for a traditional broker.

Thanks to the proliferation of smart technologies in recent years and a willingness on the part of authorities and exchanges to open their doors to technological integration, the role of the stock broker in the life of individual traders is not growing at the rate of self-directed investing (according to Forbes). Online trading platforms afford […]

Trading

Differences with Buy and Long, or Sell and Short

You'll notice sometimes an investor or trader may use the word buy while others use the word long. What's the difference? It could be very little, or a lot, all at the same time. Buying a stock (or an option) is straightforward. It's the resulting position which might not be obvious. As you probably have […]

Trading

ETFs for Beginners

Are you just starting with exchange-traded funds (ETFs)? If so, you may have little or no direct participation in the financial markets. Maybe you're transitioning from a full-service brokerage or employer-sponsored retirement plan to an online service like Ally Invest. Your investing objectives may run the spectrum from conservative to aggressive, but it's likely you […]

Options

Understanding Dividends

Dividends (either in cash or in shares) are paid by many companies to its shareholders, most often on a quarterly basis. Why should options traders care about dividends? Dividends are part of the options pricing model, and so that alone makes them relevant. But the real answer is that dividends can impact option price movement […]

Options

Understanding Option Greeks and Dividends: An Introduction

In the options marketplace, the Greeks have zero to do with classic philosophers or toga parties (unless you're trading from the fraternity house). For option traders, the Greeks are a series of handy variables that help explain the various factors driving movement in options prices (also known as premiums). Many options traders mistakenly assume that […]

Trading

Swing Trading Strategies

A guide to Swing Trading for bullish and bearish traders. Swing Trading is a short-term trading method that can be used when trading stocks and options. Whereas Day Trading positions last less than one day, Swing Trading positions typically last two to six days, but may last as long as two weeks. The goal of […]

Options

Understanding Option Greeks and Dividends: Delta

One of the biggest mistakes new options traders make is buying a call option in order to try and pick a winner. After all, buying calls maps to the pattern you’re used to following as an equity trader: buy low, sell high, in that order. Options are trickier. Sometimes the underlying stock moves in the […]