Basic Concept What are "interest only" mortgages? Mortgages are considered to be “interest only” if your monthly payment does not cover the entire loan payment due, that is the mortgage interest and a payment to decrease the loan principal. Every month you are paying the interest only and this means that the loan is literally not going away. The purpose of setting up an … [Read more...]
Introduction To Level II Stock Quotes
Introduction To Level II Quotes What Is Level II? Level II is essentially the order book for Nasdaq stocks. When orders are placed, they are placed through many different market makers and other market participants. Level II will show you a ranked list of the best bid and ask prices from each of these participants, giving you detailed insight into the price action. Knowing … [Read more...]
How to Use Level II Stock Quotes for Day Trading?
How to Use Level II Stock Quotes for Day Trading NASDAQ's Level II stock quotes gives you an advantage for decision making in the stock market. It gives day traders split second changes in the marketplace while tracking brokerage firms and electronic communication networks' buying and selling activity. Familiarize Yourself With the Level II Screen Step 1 See the three … [Read more...]
How Is Profit Calculated In An Options Trade?
How Is Profit Calculated In An Options Trade? The real difference between selling to close call options (or put options) before expiration and during expiration at market close is that when call options are sold before expiration, they have extrinsic value remaining while those same call options sold at market close on expiration day would have no extrinsic value left. As … [Read more...]
What is Options Strike Price and Expiration Date?
Options - Strike Price and Expiration Date Definition: Options trading uses several related phrases that are unique to options markets. Some commonly used, but often misunderstood options phrases are : Strike Price The strike price (or exercise price) of an options contract is the price that the underlying security will be bought or sold at if the option is exercised (i.e. … [Read more...]