Trading

What are Investment Objectives and why do I have to choose one?

Industry regulations require brokerage firms to know their clients. Part of this process involves gathering information about your trading experience, your financial background (including net worth and annual income), and your investment objectives. An investment objective is your overall outlook on trading for your account. Ally needs an accurate picture of your goals because we […]

Trading

How are “Hard-to-Borrow” fees calculated?

A hard-to-borrow fee is an annualized fee based on the value of a short position and the hard-to-borrow rate for that position. The fee is charged on a pro-rated basis depending on how many days you hold the position short. It will be assessed to your account at the end of the month or upon […]

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 […]

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 […]

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

What are unsettled funds and why am I being warned or restricted from using them?

Under Regulation T of the Securities and Exchange Act of 1934 all transactions in a cash account must be paid for in full and are also subject to settlement rules. If you purchase a security with settled funds in your cash account you may sell that security at any time without restriction. If you purchase […]

Trading

How to Buy Stock Online

Step-by-step guide to online stock trading Buying stock with an online broker is easy – but you do need to know a few points before pulling the trigger on your online trade. Here are some pointers to get you started. Anatomy of a Stock Quote When you pull up a stock quote, the first thing […]

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 […]