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  1. BMK

    Selling Short

    I don't have a complete answer for this, but according to Investopedia... Since the CFD industry is not highly regulated, the broker’s credibility is based on its reputation and financial viability. As a result, CFDs are not available in the United States. I think in many cases, the broker is...
  2. BMK

    Selling Short

    According to Investopedia... Traders who expect an upward movement in price will buy the CFD, while those who see the opposite downward movement will sell an opening position. The net difference representing the gain or loss from the trades is settled through the investor's brokerage account...
  3. BMK

    Selling Short

    Yes, but functionally, CFDs are almost identical to US index options or index futures. And even equity options are very similar. With options and futures, you can get almost the same exposure as you would with a CFD.
  4. BMK

    Selling Short

    Would love to hear from others who sell stock short, or take short positions using option spreads. If you sell stock short, do you hedge with a long call? If so, how do you choose the month and the strike? If the stock goes sideways for a while, with no significant gain or loss, how do you...
  5. BMK

    confused about w-2 and 1099B

    Sometimes the software is wrong. It's rare, but it can happen. What is more common is that certain forms and algorithms may not be available until March, because the IRS has not released enough information to the software developers. With Congress tweaking things right up until the last minute...
  6. BMK

    confused about w-2 and 1099B

    The transactions in question--the sale of RSU and ESPP--are indeed reported on both Form W-2 and Form 1099-B. This is because in some cases a portion of the proceeds from the sale may be subject to social security and medicare tax withholding, because it is a form of compensation. I cannot...
  7. BMK

    Subscription Information Services

    What is your annual budget for paid information that you use to make trading decisions? I am not referring to market data, e.g., live quotes or historical data used for analysis or backtesting. I am referring to subscription products like Bloomberg, WSJ, or IBD, and to products like Seeking...
  8. BMK

    Convertible bonds the best instrument to learn about the markets?

    Convertible bonds in some ways behave like a bond, because, well, they are bonds, and they have a principal face value and a coupon interest rate; in some ways behave like common stock, because they can be converted into common stock, and in some ways behave like a call option, because they...
  9. BMK

    Small Percentage Gains from Large Account Strategies?

    You trading CMG, Des? :sneaky:
  10. BMK

    Is there such thing as buying too many contracts?

    The exchanges have position limits that are meant to prevent one party from having too much influence on the market. But you probably won't come anywhere near those limits. One popular rule of thumb is that you should not have more than one percent of your captial at risk on any single...
  11. BMK

    Elementary Bond Question

    Here's an example of another corporate bond we are holding. Rated Baa3 and BBB-, which is the bottom of the investment grade range. Maturity is January 2025. At the most recent market price, YTM is 5.66%.
  12. BMK

    Elementary Bond Question

    Then pick something that you can hold until maturity. Six-month T-bills are currently paying almost five percent. I am holding corporate bonds that mature in September 2024, and they have a yield to maturity of 6.434%. But they are not investment-grade bonds. They are not pure junk, but they...
  13. BMK

    Elementary Bond Question

    It may help if you explain why you are buying bonds. And I'm not trying to be funny. So you bought a bond that matures in 10 years, and you are not planning to hold until maturity. Okay, that's fine. But what are you planning to do? What is your objective? Do you want to hold the bond for a...
  14. BMK

    Elementary Bond Question

    If interest rates go down after you buy the bond, then the market price will go up, and you will be able to sell the bond at profit (capital gain). The total return should be the gain (or loss) on the sale of the bond (the difference between what you paid for it and what you sold it for) plus...
  15. BMK

    Elementary Bond Question

    Yes, you are missing something... The interest rate on the bond you bought does not change--unless it is a floating rate instrument, which is a totally different conversation. Most bonds have a fixed interest rate. The interest does not change over the life of the bond, and it does not matter...
  16. BMK

    Is there such thing as buying too many contracts?

    Are you talking about the number of option contracts in one specific position, or are you talking about the total number of positions that you have active an any given time?
  17. BMK

    Seeking Alpha

    Do you have the premium or pro subscription? If you had to make a decision today, would you renew it?
  18. BMK

    Seeking Alpha

    Does anyone use their paid subscription service? Care to share your experience, e.g., is it worth it? They have a premium subscription for $239 per year, and a pro subscription for $499 per year. I'd love to hear from anyone who has paid for either of these options.
  19. BMK

    How to send email to IRS and US treasury to complain about the 10% PTPs tax?

    Form 1040-NR. Before you can file a tax return, you'll need to obtain a tax ID number, by filing Form W-7. To file Form W-7, you either need to enclose original identification documents, which are then returned to you, or you need to file the form through a Certifying Acceptance Agent that has...
  20. BMK

    How to send email to IRS and US treasury to complain about the 10% PTPs tax?

    It is a withholding tax. That means that the broker withholds that amount, and sends it to the IRS, where the tax is held in account at the IRS under the name of the taxpayer, i.e., the broker's customer. If you file a US tax return, then the amount withheld is applied to any tax that you owe...
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