Trading Insights

Quadruple witching is a market day when single stock options, stock index options, single stock futures, and stock index futures all expire. Quadruple witching days typically see above-average trading volume, although this volume isn’t necessarily accompanied by...

Iceberg orders are a type of trade typically placed by institutional investors. They are designed to mask the size of an order, such that only a small portion of the total trade – the tip of the iceberg – is visible to the market. Traders who can recognize iceberg...

Gaps in a stock chart occur when the price of a stock moves suddenly up or down, usually in response to news outside of market hours. In some cases, these gaps don’t last – rather, they’re “filled” as trading action brings the price back towards the previous close....

Trading halts can be a big deal for active investors, particularly if you are holding a stock that temporarily can’t be traded. But since trading halts are relatively rare, many traders don’t know why they happen or how they work. In this guide, we’ll explain why...

Zero-commission brokers have been in the news emphasizing the democratization of investing, pitching cost-savings for clients, and helping fuel the momentum of meme stocks. However, some of these brokers have also received criticism for the gamification of the stock...

Whenever a publicly traded company releases big news that drives the share price up or down, it’s common for the company’s competitors in the same industry to see significant stock price movements as well. These ‘sympathetic’ movements offer a chance for traders to...

In the world of trading, the term “route” refers to the path an order takes to get to the market. While most traditional discount brokers automatically route orders for clients, day trading brokers give clients control over their order flow. If you’re a trader using a...

Volume is a key metric that every trader should be aware of. While trading volume on its own is informative, relative volume is particularly important for trading. Relative volume can indicate when trading interest in a stock is high or low and it may provide signals...

Every time the stock market goes on an extended bull run, fears of a bubble begin to creep in. Stock market bubbles have the potential to wipe out enormous gains when they pop. So, it’s important for traders to be able to recognize them and to know how to trade when a...

You’ve likely heard the term “algorithms” or (algos for short) used in reference to trading. Algorithms run the markets and are responsible for most of the trading volume in the U.S. stock markets on any given trading day. Let’s take the mystery out of stock market...

Thanks to after-hours trading and pre-market catalysts, it’s not uncommon for stocks to open at a significantly different price than the price at which they closed the afternoon before. These pre-market gappers offer many opportunities for traders in the first hours...

Traders often take advantage of margin to increase the potential return of their trades. When trading with margin, you borrow money from your broker to increase the size of your trade. This loan comes with an interest fee, which is known as the margin rate. In this...

You’ve likely heard of the term margin when it comes to stock trading. Day trading accounts are usually margin accounts. They are much different from cash accounts, which may be suitable for investors and swing traders. Most brokers provide margin and cash accounts...

While day trading and investing share the same goal of making a profit in the stock market, the two approaches are quite different. Day trading implies short term trading composed of buying and selling positions within minutes to hours, while investing has a longer...

SPACs have made headlines in 2021 as many private companies have come to market through reverse mergers into SPACs. So, what are SPACs and how do they work? What is a SPAC? A special purpose acquisition company also referred to as a SPAC is a publicly traded blank...