FAQ

Frequently Asked Questions about Trading

What is Naked Short Selling?


Learn about naked shorting.

Naked short selling or naked shorting is the illegal practice of short selling nonexistent shares or shares the seller does not own. The security is not owned by the seller, but it is promised to be delivered. In general, traders must borrow a stock before they can sell it short, however, loopholes in rules allow naked shorting to continue to happen.

What are "bots"?


Wondering what "bots" are?

Bots is the shortened form for technical robots, alternatively called trade algorithms. In trade parlance, they are computer programs that can trade directly to human counterparts. They can also perform other functions like a normal trader like arbitrage, market making, and the like. To learn more read this.

How Do I Invest My First $2000?


How to invest your first $2000.

Here are some things to consider before investing your $2000: personal research, putting your money into managed funds, studying investment risks and developing a trading strategy. Learn more by reading this.

What is Sharelord?


Learn more about Sharelord.

Sharelord is an investment and moneymaking education tool formulated in the 1990's by Nik Halik and Financial Freedom Institute (FFI). It is a self-paced program similar to a long distance e-learning course. The product is designed for investors with high-return strategy goals as well as those who are searching for a part-time profit based cash flow system. At the time of this writing, Sharelord is available for AU$5995 (full payment) or AU$6594 (payment plan).

Australian Agricultural Companies


Researching for Australian agricultural companies to invest or trade shares?

Researching for Australian agricultural companies to invest or trade shares? Or internet companies listed on the Australian sharemarket? Well here's a list of the internet companies found on the Australian stockmarket. The ASX have a variety of businesses listed on their exchange which represent the agriculture industry. The agricultural sector contains companies which provide capital services such as fish farming, cattle farming, grain storage, rural property management, food producers and dairy goods.

Australian Agriculture Stocks

What is the Leveraged Instrument?


In terms of stocks, the stockmarket and trading what is a leveraged instrument or Leveraged Trading?

In the money management calculator, there is an option to choose a financial instrument: Shares or Leveraged.

Leverage on its own is a general financial term meaning a technique to multiply gains and losses. Common methods in which investors and traders use leverage to trade the markets are by margin loan, by borrowing money to buy shares, or through more sophisticated methods via derivatives such as CFD's, Options or Warrants.

What is a Stop Loss?


In terms of stocks, the stockmarket and trading what is a stop loss?

A stop loss is a price at which an investor or a day trader would exit the trade to minimise losses on a trade gone sour. The stop loss is best decided determines ahead of time before the trade is imitated.

In the money management calculator, there is an option to enable the profit target.

What is a Profit Target?


In terms of stocks, the stockmarket and trading what is a profit target?

In the money management calculator, there is an option to enable the profit target.

The profit target is a price at which you aim to cash out and take your investment profits off the table. Day Traders usually determine this price using technical analysis.

What is a Risk to Reward Ratio?


What is the Risk/Reward Ratio?

In the money management calculator, there is an option to enable the risk and reward ratio to be revealed in the analysis.

What is a Long Trade? What is a Short Trade?


Don't know what a long position or a short position is in terms of stocks and share trading?

In the money management calculator, there is an option for "Position Type: Long/Short". What is a Long trade? What is a short trade? what is a long position what is a short trade position?

A long position is when an investor buys low and sell high to profit from the transaction. A short position is when the investor sells high and buys back the stock at a low price to profit from the trade.

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