Can anyone take out a margin loan, or do you need assets?
A margin loan allows you to borrow money, giving you a wider range of investment opportunities and increases your potential returns. It allows investors the opportunity to combine their existing equity with borrowed money to expand their portfolio into shares and managed funds. The three main forms of security used on a margin loan are:…
How to buy and sell shares with conditional orders
Question: Can you please demonstrate how conditional orders work, and tell us why traders use them? Response: Conditional Orders enable investors to set specific conditions to either buy or sell shares at a certain price if a share reaches that price in the market. We will look at four strategies: Falling Sell, Rising Buy, Falling…
Top 5 Tips For Boosting Profits In Forex Trading
1. Trade Using Multiple Objectives It may seem obvious; but the best thing for you to do in your trading to improve profit is to actually take profit. There are too many traders who are so happy to see their position in the green that they will sit on it as emotion crowds out rational…
Can the interest on my margin loan be covered by dividends on shares?
Question: Do I have to come up with the interest payments on a margin loan or could it be covered by the dividends I receive on the stocks? Can you give me an example please. Response: While there is no obligation to pay interest on your margin loan, assuming the loan doesn’t go into margin…
What is a popular options strategy for traders?
Question: What is a popular options strategy for traders? Response: Covered Calls – Generating additional income from your stocks This options strategy provides a way to increase income from stocks you already hold, using what is known as the ‘Covered Call’ strategy. This strategy supplements the return on a share investment, which is typically capital…
How do I calculate my gains and/or losses when I sell a CFD?
This is a good question for anyone who is considering using CFDs within their trading strategy. Equity CFDs not only replicate a share trade but have the additional benefits of leverage and the ability to go short. Using CFDs it is possible to profit from a rising or falling market by only making a small…
What is the formula to determine the total % return on a fully franked dividend?
Question: What is the formula to determine the total % return on a fully franked dividend? Response: If a dividend is 100% Franked, then for every $30.00 of tax paid by the company, a franked dividend of $70.00 can be paid. Company Profit: $100.00 Tax Paid: $ 30.00 Dividend Paid: $ 70.00…
How do I know where to place my stop loss on a forex trade?
Question: How do I know where to place my stop loss on a forex trade? Answer: Kathy Lien, Director of Currency Research, GFT I am so glad you are asking this question, because the number one rule of trading is “always use a stop.” This is particularly true when trading forex, because trends can last…
Can I make a living trading forex?
“Make $20,000 per month in income trading currencies! Trade on autopilot and rake in the cash!” If you have ever received any of these colorful junk e-mail messages, you are not alone. Across the world, smooth-talking swindlers with get-rich-quick schemes bombard internet users with stories that sound entirely too good to be true. If you…
Can I make a living trading forex?
“Make $20,000 per month in income trading currencies! Trade on autopilot and rake in the cash!” If you have ever received any of these colorful junk e-mail messages, you are not alone. Across the world, smooth-talking swindlers with get-rich-quick schemes bombard internet users with stories that sound entirely too good to be true. If you…
