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Day Trading Software for Options

Day Trading Software for Options

Posted by on Apr 3, 2015 in Day Trading Software for Options |

Computer applications made it easy to computerize trading, particularly for short term intensive activities such as day trading, by making the usage of trading software extremely popular. Also, the debate continues on the profit potential that could be practically derived from day trading activities, as commissions and brokerage are said to remove the major portion of available profit potential. Therefore, it becomes very important to choose the right day trading software with a assessment of its applicability to individual trading strategies/needs, cost benefit analysis as together with the functions and features you need.

Day trading is a time bound trading activity where sell or buy positions are closed and taken on the same trading day, with a intention to make profits on large order volumes and  in smaller price differentials by common selling and buying, frequently on leverage.

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Now, what is day trading software?

It is an automated computer program, generally provided by brokerage firms in order to help clients complete their day trading activities in a timely and efficient manner. They allow traders to collect profits that would be difficult to accomplish by simple mortals. To sow you on example: a day trader could find it impossible to track manually 2 technical indicators (such as fifty and two hundred day moving averages) on 3 different stocks of her or his choice, but an automated day trading software easily can do that and place trades after the set criteria is met.

The functions and features available could vary from one software to the next one and could come in different versions. Aside from brokers, independent vendors provide day trading software as well, which have a tendency to have more advanced features. If you are doubting your broker for any given reason you can chose one of many sites that can tell you is your broker legit or not. For example here is a scan of cherrytrade.

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How this software works?

3 basic features of any day trading software include:

  • Automated order placing function (frequently with Direct Market Access), after the criteria are met.
  • Functionality allowing the setup of trading strategy that is based on technical news /indicators/ pattern recognition/ trading signals in the trading system.
  • Analytical tools to carry on assessment of existing holdings if any market features and developments accordingly act on them.

Any day trading software will involve a one-time setup of trading strategy with setting the trading limits, and by putting the system on live data and letting it perform the trades.

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One simple example. Suppose a stock ABC is dual-listed on both NASDAQ and NYSE stock exchanges. Now, you are looking for arbitrage opportunities and you find a day trading software available for it. So, you setup the following:

  • You will select ABC stock for arbitrage and select 2 markets (NASDAQ and NYSE) for trading
  • Supposing both legs of intraday trade costs you a total of 0.2 USD per share for commission and brokerage; you intend to look for price differentials between 2 markets in excess of that amount. You will set (let’s say 0.3 USD or maybe above) as the price differential –the software should execute an immediate sell and buy order only if the bid and ask prices on the 2 markets (NASDAQ and NYSE) are differing by 0.3 USD (or maybe more)
  • Now, you need to set the number of shares to be sold and bought in one order (let’s say 10,000 shares)

Let this setup go live.

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Day trading software reviews

Day trading software reviews

Posted by on Mar 28, 2015 in Day trading software reviews |

SieberNet

 

SiebertNet offers a simple to-utilize online stage where you can exchange the standard speculations, including stocks, options and bonds. It gives fundamental instruments to looking into and observing stocks, however it doesn’t have a percentage of the more refined devices that different administrations offer. Nonetheless, the greatest drawback to this administration is its charges, which are much higher than some other day exchanging programming administration we investigated. At the point when exchanging stocks, there is an expense of $14.96 every stock, which is the most noteworthy of any administration we inspected charges for a stock exchange. Likewise, there is a base request measure of $35, so even maybe a couple stock exchanges still cost $35. Some different administrations have a base, yet the base is by and large in the middle of $10 and $15. Options contracts are likewise pricier than with other administration at $1 or $2 every agreement, and base rate is fundamentally higher than whatever other administration at $35. For high-recurrence dealers, these charges will begin to include rapidly.

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SpeedTrader

 

SpeedTrader’s charges are a portion of the least in the business, particularly in case that you keep a record equalization of over 25.000 dollars. The desktop application is adaptable and grants you to arrange exchanges, deal with your record and examination stocks. Then again, while you have admittance to standard devices, this day exchanging programming does need numerous progressive instruments and reports that different administrations offer, and portable exchanging is finite. The charge for exchanges is settled at $6.95 for brokers with record adjusts under 25.000 dollars, and that expense drops to $4.5 if your record equalization is above 25.000 dollars. For designed informal investors, as managed by the Financial Industry Regulatory Authority, you must keep up an equalization of 25.000 dollars notwithstanding, so high-recurrence brokers will probably effectively meet that base. The every agreement expense for options exchanging is $0.50, which is lower than numerous different administrations.

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SogoTrade

 

With a couple of diverse stages for day exchanging programming, SogoTrade offers decisions relying upon your exchanging inclination. For desktop applications, you can pick SogoTrader, the most essential with a solitary screen for exchanging stocks; you need to pick SogoOptions for stocks, options and ETFs. The last decision is SogoOnline, which is a thorough online stage for exchanging stocks, options and ETFs. Then again, none of these stages grant you to exchange higher hazard investment, and the administration does not offer different ventures, for example, securities and common trusts. SogoTrade offers low cost for stock exchanges, and that value discounts as you buy more. Provided that you exchange is under 150 stocks every quarter, every exchange is $5. When you exchange more than 150 every quarter, that value drops to just $3 every exchange. Options are situated at $5 every exchange in addition to an extra $0.50 every agreement, which is lower than what numerous administrations charge. For edge records and day exchanging on the edge, you must keep up in any event 2.000 dollars in your record, and for example informal investors who exchange more than four exchanges a moving five-day period, you must keep up at any rate 25.000 dollars in your record. This is commanded by the Financial Industry Regulation Authority. Edge rates begin at 6.85% and drop to 4.5% for records with offsets over 500.000 dollars.

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Day trading options – Strategies

Day trading options – Strategies

Posted by on Mar 28, 2015 in Day trading options |

The term “day trading” – used by people – means the act of buying and selling a stock in the same day. The thing is that day traders look for to make profits by controlling big amounts of capital in order to take benefit of small price movements in highly liquid indexes or stocks. In this article we are going to look at some common day trading strategies that could be used by traders. Now let’s take a look at what you should be focusing on when day trading options. The first thing is that it’s important to recognize 2 problems that usually occur when day trading options.

  • Too much Time Value. An option’s basic value is the difference between the strike price and the underlying asset’s price. But, new traders have to be conscious of time value. Time value is built into the option top quality and represents the market value of the time remaining on the option contract. The thing is that the time value part of the option premium can make up for gains seen in an option’s basic value.
  • High Bid-Ask Spreads. Liquidity is very important for day traders. But the options market has limited liquidity. That lack of liquidity results in bid-ask increases that are wider than those of the underlying assets. Now, high spreads cut straight into the profits of a typical day trade.
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Now, the question is – what should a day trader be looking for in an options day trade? Well, successful options day trades frequently have little time value and a delta close to -1.0 for puts and 1.0 for calls. The delta of an option is the relative amount of price change between the price of the option and the underlying asset. now, we are going to show you two types of options that are attractive to day traders:

  • Near month in-the-money options. Here, day traders seek near month in-the-money options of extremely high liquid stocks. Near month turns to options whose contracts run out at the end of the nearest month, and in-the-money options have moved past the strike price and may be used. Because in-the-money options move toward their expiration date, the option premium is based more on basic value. The effect of time value is minimized when this happens. These types of options are greatly traded, which translates to smaller bid-ask spreads and a greater liquidity.

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The Protective Put. In here, some of the day traders going to continue to trade the same stock option over a few months. And these types of traders look to capitalize on short upside moves. Day traders trying to deal with risk can purchase a put option on that stock in order to defend against any theatrical downturns in the stock’s value. Now, traders have to pay a premium on the defensive put, but if the stock quickly declines in value they have the capability to limit their losses.

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How to Trade in Penny Stocks

How to Trade in Penny Stocks

Posted by on Mar 28, 2015 in Day trading penny stocks |

So, let’s start this article with an explanation what Penny Stocks are. A penny stock is defined by the Securities and Exchange Commission (SEC) as a low priced common stock: a stock trading below five dollars a share. Generally, Penny stocks are traded outside the main stock exchanges (such as the NYSE or the Nasdaq) and are traded on what is called OTCBB (the over-the-counter-bulletin board) or through pink sheets. Pink sheets and the OTCBB – both of them provide ways to trade stocks that don’t meet the rigorous listing requirements of the major exchanges. Certainly, this means that penny stocks are far more unstable than your typical stock listed on the NYSE. In general, we don’t recommend trading them because of the high risk associated with penny stocks, unless you have a clear strategy and you are a very sophisticated investor.

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Penny stocks, because of their tiny share prices, permit online investors to buy large numbers of shares. It is appealing to own large pieces of stock, but penny stocks could be easily manipulated. Different from giant stocks like Microsoft or Exxon, which are so expensive that you would need tons of dollars to budge the stock, penny stocks could be nudged with a few hundred bucks.

A small amount of negativity or hype can have a big effect on a share price of a penny stock. A stock has to move only from 1 penny to 2 pennies to double a fraudster’s money.

A lot of penny stocks also trade on the commonly unregulated OTC Bulletin Board and Pink Sheets markets, considered to be something like the Wild West of online investing. So the best thing is to avoid investing in penny stocks, but if you can’t refuse to go along with the urge, you should follow these guidelines:

  • You should read the warnings from regulators: SEC (The Securities and Exchange Commission) has released numerous warnings to investors about investing in penny stocks. You could search for a company’s name and officers using the tools at the main site of The Securities and Exchange Commission in order to see whether prior problems have occurred.
  • You should check the level of disclosure of the company: otcMarkets rates companies with 1 of 8 icons that point out how much information they offer to investors. The highest-quality rating is otcQX, followed by OTCBB Only, Pink Quote OTCBB, Limited Information, Pink Sheet Current Information, Grey Market, Caveat Emptor and No Information.
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The OTC Bulletin Board offers comparable information on its stocks. The site, for instance, has a Eligibility/Delinquency list of presentation companies that have not met its standards.

– You should do your due diligence: At the very least you should see whether the company has released any financial statements. You should carefully analyze if financial information is available. StockPatrol also features in detail analytical reports of companies, which includes a lot of penny stocks. Just by reading the stories, in the meantime, it can give you an idea on how to look into penny stock companies.

– You should ensure that you can’t do better: With thousands of stocks listed on the NASDAQ and NYSE, you should be able to find a listed stock you would like to invest in.

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Why is it important to choose a right Day Trading Software?

Why is it important to choose a right Day Trading Software?

Posted by on Mar 17, 2015 in Day Trading Software, slider |

Computer applications made it very easy to do trading automatically, especially when it comes to short ones like day trading. Because of this trading software’s are very popular for use. When it comes to profit potential, we know that commissions and broker rage are taking the biggest part of the portion on profit potential which is available. So, it is of a vital importance to find the best trading software, the one which will suit you completely with all analysis of cost benefits, assessments of software applicability and with all trading needs for each individual. Traders familiar with day trading know that the time is of a big importance since sell or buy positions will be taken as well as closed on the same day, with the purpose to make your profit which will be in smaller price differentials compared to large volumes by constant buying and selling (usually on leverage).

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Day trading software is a computer program which is automated, and in most of the cases provided by brokerage firms to their clients to encourage them and help to carry out their day trading activities concerning timely manner. They give traders an opportunity to reap profits which would be very complicated to achieve by mere mortals. Example: If a trader has two technical indicators he will find himself in situation where he cannon track both manually especially if they are on three different stocks which he/she has chosen. But with this automated software he will do it without any problems, and trades will be placed at the moment when the set criterion is met. Software is different from different manufacturers, and came with different functions and features available. If you are not a broker, independent vendors can provide you with one of day trading software’s with advanced features which will help you more.

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You ask how this software works.

Well there are three very basic features which are included in any day trading software no matter who produced it and they are: To functionally allow the setup of strategy for trading(this will be based on many factors, such as news, technical indicators, pattern recognition, trading signals etc.) in the system of trading; The function of automated order placing(Which in most cases has direct access to market), when the criteria are met; Analytical tools, which will continuously do the assessment of the existing holdings(if there are any)features to act on them accordingly and marked developments. But no matter which software you have, it will require a onetime setup of strategy for trading, which will set the trading limits and put the system on live data, giving it a chance to execute trades. Good trading software needs to have platform independence. And you need to know your specific needs for day trading since they differ from trader to trader. When you decide to buy trading software you would ask them to give you a trial version so that you can thoroughly examine it during its trial period. Also look for its additional and analytic features, since they are very important and will be of a great importance to your trading. But if you want to start trading a demo account would be a good thing to start with http://top10binarydemo.com/

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