trading and execution
Educational articles in this subcategory.
Glossary: Trading and Execution Terms
## Introduction This glossary defines 30 trading and execution terms with concise definitions focused on practical application. Bookmark this page fo...
Trading Psychology and Discipline Practices
## Why Psychology Determines Trading Outcomes Active trading performance is determined less by analysis quality and more by **execution discipline un...
When to Use Alternative Trading Systems
## What Alternative Trading Systems Actually Do Alternative Trading Systems (ATS) are SEC-registered trading venues that match buy and sell orders ou...
Leveraging Portfolio Margin Accounts
## What Portfolio Margin Actually Provides Portfolio margin (PM) calculates margin requirements based on the **net risk of your entire portfolio**, n...
Using Options for Synthetic Exposure
## What Synthetic Exposure Means in Practice A synthetic long stock position combines two options contracts—**a long call and a short put at the same...
Maintaining Compliance with Pattern Day Trading Rules
## Why PDT Rules Catch Traders Off Guard The Pattern Day Trader (PDT) rule is one of the most frustrating regulations for active retail traders. Exec...
Tax Considerations for High-Frequency Trading
## Why Taxes Can Eliminate Your Trading Edge A trader generating **20% gross returns** with high turnover might net only **10-12%** after taxes—less ...
Performance Attribution for Active Strategies
## Why Raw Returns Don't Tell You What's Working You beat your benchmark by **3%** last year. Congratulations—but do you know why? Was it because you...
Trade Journaling and Post-Mortem Reviews
## Why Most Traders Repeat the Same Mistakes Trading without a journal is **practicing without feedback**. Studies of professional traders show that ...
Handling Gaps and Volatility Events
## Why Gaps and Volatility Events Demand Different Tactics Price gaps—when a stock opens significantly higher or lower than the previous close—accoun...
Managing Trades Through Earnings Season
Earnings announcements are binary events that compress months of expectations into single-day price moves averaging 4-8% for S&P 500 stocks and 10-15%...
Using Stop Orders, OCO, and Trailing Stops
Stop orders remove emotion from exit decisions by executing automatically when price reaches a trigger level. They protect against large losses and ca...
Position Sizing and Risk-Reward Ratios
Position sizing answers the question: "How many shares should I buy?" The answer isn't "as many as I can afford" or "whatever feels right." It's a fun...
Measuring Slippage and Implementation Shortfall
Every trade has a cost beyond commissions. When you decide to buy a stock at $50.00 and your order fills at $50.12, that $0.12 difference is slippage....
Algorithmic Execution Basics: VWAP, TWAP, POV
Algorithmic execution strategies break large orders into smaller pieces and execute them over time to minimize market impact. If you need to buy 50,00...
Order Routing Choices and Smart Order Types
When you submit an order, your broker chooses where to send it for execution. This routing decision affects your fill price, execution speed, and like...
Short Selling Mechanics and Borrow Costs
Short selling is the process of selling borrowed shares with the intention of buying them back at a lower price. The mechanics involve locating shares...
Margin Accounts, Leverage, and Regulation T
A margin account allows you to borrow money from your broker to purchase securities. The Federal Reserve's Regulation T limits how much you can borrow...
Broker Selection Criteria for Active Traders
Broker selection for active traders involves different criteria than for buy-and-hold investors. Commission costs, execution quality, margin interest ...
Designing a Written Trading Plan
A written trading plan is a document that specifies exactly when you will enter trades, how much capital you will risk, and when you will exit. The pl...