Dear U.S.G.,

This is an excellent question because many people assume ScottradeELITE and other programs which rely on streaming data will always work flawlessly upon installation. However, this is not always the case. There are several things you will want to look at after you have installed ScottradeELITE.

First, how many programs do you currently have running concurrently with ScottradeELITE? Many people make the mistake of attempting to run numerous programs at the same time as ScottradeELITE. This is never a very good idea whether we are talking about ScottradeELITE or any other program you rely on to make trades. The more programs you have open, the more memory is taken up on your computer and the slower ScottradeELITE runs. This situation can lead to delays after clicking on buttons, including when you place a trade. The solution is to make sure you keep the number of other programs running on your computer to a minimum when using ScottradeELITE.

Second, are you using other streaming quotes platforms at the same time as ScottradeELITE? While it may seem like a good idea to use the trading platforms of several companies at once, it can definitely lead to several unintended and unwanted consequences. First, you may exceed the total amount of bandwidth your Internet service provider (ISP) offers to you. This could lead to delays in the data coming through to either ScottradeELITE or any other streaming platform you may be using. Second, particularly on heavy trading days, your computer may not have enough memory to handle the requests from two or more streaming quotes platforms. This is basically the first issue I described in the paragraph above.

Third, what type of Internet connection do you have? For the best ScottradeELITE performance, you should have a broadband (Cable, DSL) Internet connection. What many people do not know is that your ISP may offer several "tiers" of broadband Internet, with higher tiers costing more but providing you with faster upload and download speeds. In other words, you will have higher bandwidth. I encourage you to contact your ISP to see what tiers of service they have available.

Fourth, does your computer have a software firewall? Almost all Windows computers for sale today come pre-installed with a firewall, usually Norton® (made by Symantec®) or McAfee®. Typically, these firewalls will eventually block the streaming data sent and received by ScottradeELITE unless some initial work is done by you.

You will see an icon for your firewall in the lower right hand corner of your computer screen just to the left of the time. Hover your mouse over each icon until you see McAfee or Norton (or another firewall manufacturer - you may need to check with whomever you purchased the computer from). Once you have determined which firewall you have, contact the tech support group for that particular firewall and ask how to open Port 443 - the opening o

Dear E.F.,

NASDAQ Velocity and Forces is a unique, real-time tool that indicates changes in market direction based off of order flow, not executions. By combining the information displayed in the Forces and Velocity speedometers, you can detect surges in trading activity to help you fine tune your trading strategy.

Here is how it works. The Forces speedometer shows you the ratio of buy orders to sell orders. Once again, this is based on order flow and not actual executions. The higher the ratio on either the buy or sell side could indicate a shift in the trading direction for a particular stock.

The Velocity speedometer measures the momentum of order flow. The higher the percentage listed on the speedometer represents a faster, more intense rate at which orders are being received at the market site. The benchmark is 100% which represents the previous 21 day average order flow at that moment in time for a given stock.

Combining the information from the Forces and Velocity speedometers gives you the ability to detect potential shifts in a stock's price and make better trading decisions. To find out further information about NASDAQ Velocity and Forces, I encourage you to view the podcast on Scottrade.com. Alternatively, you can also view the video through the Scottrade Webcast link within ScottradeELITE's Help section.

Thanks for your feedback!

Sincerely,
Paul Sieben
Active Trader Services Specialist at Scottrade

Dear C.M.,

Yes! Scottrade hosts FREE ScottradeELITE User Summits across the country to help you learn more about ScottradeELITE and the markets in general.

The User Summits are on Saturday afternoons and include:

• An in-depth walkthrough of ScottradeELITE from our Director of Product Development
• A session about Trade-Ideas from our Manager of Active Trader Services
• A guest speaker usually from an exchange or other relevant organization

Below is the current ScottradeELITE User Summit schedule for 2008.

• Pittsburgh - June 7 - Westin Convention Center, Pittsburgh
• Boston - June 28 - Westin Copley Place, Boston
• San Diego - July 12 - Hyatt La Jolla
• New York - July 19 - Sheraton Hotel & Towers
• San Jose - August 16 - Hyatt Regency Santa Clara
• Chicago - September 13 - The Westin Chicago Northwest
• Atlanta - October 18 - Sheraton Atlanta
• Houston - November 15 - The Westin Oaks Hotel in Post Oak

If you would like to receive an e-mail invitation to any of the User Summits, please e-mail elitenewsletter@scottrade.com. Please include the events you are interested in and your e-mail address.

We look forward to seeing you at a ScottradeELITE User Summit!

Kristin McDougall
Customer Education Manager at Scottrade

Dear N.C.,

This is an excellent question. ScottradeELITE is Scottrade's most robust trading platform, and advanced layouts may tax some older computers. As a result, there are several things you should be looking for in a new computer if you want ScottradeELITE to perform smoothly:

1) Operating System (OS)
ScottradeELITE is a Windows-based platform and as such works best with one of the two latest Windows operating systems, Windows XP or Windows Vista. Each operating system comes in a variety of "flavors" such as Windows XP Pro or Vista Ultimate, but as long as you have some type of variant of one of these two operating systems, you will be fine. Please note ScottradeELITE will now work on the latest Intel-based Macintosh computers using Parallels or Boot Camp. I currently recommend Windows XP as the OS of choice.

2) Processor Speed (in GHz)
The second factor to look at when buying a computer is processor speed, or the "horsepower" of your computer. The larger your processor speed, expressed in gigahertz (GHz), the faster your computer can run a given program. It is also very useful to have a higher processor speed if you plan to run other programs at the same time as ScottradeELITE.

Currently, you can get an average new computer with a 1.8 GHz processor for a very reasonable price. ScottradeELITE users with multiple monitors and many windows open will probably want to look for a computer with a 2.4 GHz Dual Core or Quad-Core Processor. The higher the Front Side Bus (FSB) speed the better your computer will perform as well. FSB is usually reported immediately following the processor speed.

3) RAM (Random Access Memory, in MB or GB)
The third factor is memory, which is usually expressed in megabytes (MB) and gigabytes (GB). One thousand twenty-four megabytes (1024 MB) equals one gigabyte (1 GB). Currently, our minimum system requirements specify 256 MB (.25 GB) of RAM. For the best results, Windows XP users should be using around 1.5-2 GB of RAM, and Windows Vista users should have closer to 3 GB of RAM.

4) Internet Connection
The fourth, and in many ways most important factor, is your Internet connection. To optimize ELITE, you should be using a broadband Internet connection using Cable or DSL. There are often several levels of service an Internet service provider (ISP) will offer. I encourage you to contact your local ISP and see what kind of rates they offer for their fastest service. For instance, the local cable ISP here in St. Louis offers a 10 MBPS (megabyte per second) download speed as its top tier of service, which should be more than sufficient for all but the very largest of ScottradeELITE layouts.

Dear A.R.,

Many investors find order types, and especially Stop and Stop Limit orders, difficult to understand. I'll start with the definitions and then provide some specific examples to help clarify for you.

Stop Order

A Stop order is an order to buy or sell a security when its price surpasses a particular point, limiting your loss or locking your profit. Once the market price surpasses the predefined entry/exit point, the stop order becomes a market order, and is then handled as defined under the definition of a market order. This type of order is also referred to as a "stop-loss order". These types of orders may be placed with special instructions, like GTC (good until cancelled). Stops are not a definite guarantee of getting the desired entry/exit points. For instance, if a stock gaps down then your stop order will be triggered (or filled) at a price significantly lower than expected.

• Buy Stop Orders - The stop price is set above the current ASK price
• Sell Stop Orders - The stop price is set below the current BID price
• Depending on market conditions, once the order is triggered, there is no guarantee of the execution price and the price received may be several points away from the stop price.

As an example, we want to sell our position if the price of the stock drops to 30.25. Wait a minute! Lower than the prevailing market bid of 33.56? Yes! Because we won't actually trigger the stop order until GE trades lower to 30.25. Until that time we still own 10 shares of GE. A Stop Order is a protective order that limits our loss from the purchase price. Let's investigate.

After entering the symbol and the number of shares, select "Stop" from the Order Type drop down box. As soon as you select Stop, the Stop Price field will become accessible. It is important to note that for a sell order, the Stop price must be lower than the prevailing quote, which in this case a bid 33.82, so our Limit order of 30.25 is lower.

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Dear C.G.,

The best way to get started with Trade-Ideas is to go to the Settings button on the main tool bar. This will open to the Strategies tab. Here you will see two folders: Preconfigured Strategies and Recent Strategies.

The Preconfigured Strategies are a great way to learn how strategies can be set up. If you highlight any of the strategies here, you will see the Alerts/Filters for that strategy to the right in the icon view. When you mouse over the icon, you will see the details for that particular Alert/Filter. If you left click on the icon, you will be taken to the help page for a detailed definition of the Alert/Filter. Right clicking on the icon will take you to the window where you can alter that Alert/Filter.

Once you feel you are ready to create your own strategy, double-click on Start from Scratch under the preconfigured strategies. Next, you will go through each tab and select the Alerts/Filters you want to use, exchanges or symbol lists you wish to follow, and you will be given the opportunity to name your new strategy. Your new strategy will now be under the Recent Strategies folder for you to come back to and use the next time you log in. All you will need to do is open the settings menu, expand the Recent Strategies folder and double click on the strategy that you have created.

As always, feel free to contact your local branch office for additional information.

Sincerely,
Todd Slawson
Active Trader Specialist - Scottrade

Dear C.H.,

There are a variety of ways you can learn more about the specific functions within the ScottradeELITE trading platform. The three primary sources for help and information are: The Online User Guide, The Online Tutorial and Scottrade Webcasts. You can access all of them through the Help button at the top of your ScottradeELITE window. Below is a brief description of each one:

Online User Guide

The Online User Guide is written help that describes the functions within ScottradeELITE. To access the Online User Guide, click the Help button at the top of your ScottradeELITE window and select Online User Guide. You can use the table of contents on the left side of the window to select the topic you would like to learn more about. When possible, the Online User Guide provides graphics to help explain the features and functionality of ScottradeELITE.

Online Tutorial

The interactive tutorial uses sight and sound to teach you about ScottradeELITE. You can use the Menu function in the upper left-hand corner of the tutorial window to jump directly to a specific function, or watch the entire tutorial for a great overview of the entire platform.

Scottrade Webcast

Watch and learn! Watch video Webcasts on a variety of features within ScottradeELITE. Topics include: advanced charting, advanced order types, Trade-Ideas and ScottradeELITE overviews. We are continually releasing new Webcasts, so keep checking back for additional topics.

Of course, you can always call your local Scottrade Branch Office with any questions regarding ScottradeELITE.

We are always looking for feedback and suggestions of topics you would like to see covered. So, please feel free to send in your suggestions - we'd love to hear them!

Sincerely,

Kristin McDougall
Customer Education Manager at Scottrade

Scottrade's Stock Screener might be just what you're looking for. You can set up and save customizable screeners so that every time you're logged into your account, the screener is searching for stocks that meet your criteria. You can screen by market segment, price and performance, fundamentals, and earnings and dividends.

To access the stock screener, log into your account and click on the Quotes & Research tab at the top of the page. Next, click Stocks and then click Stock Screener on the left menu.

If you have any questions about how to set up your stock screener, feel free to contact your local Scottrade Branch Office.

Dear Trader,

Utilizing options as part of your overall investment portfolio will give you an important new tool to take advantage of certain market forecasts and situations. However, like any tool in a toolbox, the option isn't appropriate for all circumstances and has some limitations that are important to understand and be aware of.

First of all, lets begin by describing what an option is: An option is a contract that gives the buyer (holder) the right to obtain the underlying asset of the option, which could be a stock, equity, index or a variety of things, but for our purposes, let's keep it to a stock in a specific company, at a specific price at any time during the life of the option contract. Conversely, the seller (writer) of the option contract incurs the obligation to deliver that underlying asset at the specific price agreed upon whenever the buyer decides to exercise their right to do so.

There are two types of options available. One, the call option, provides the buyer with the right to buy the underlying stock at that specific price during the life of an option, and the other, called a put option, allows the buyer to sell the underlying stock at that specific price at any time during the life of the option contract. Here the seller of the call has the obligation to deliver the stock, while the seller of the put has the obligation to buy the underlying stock.

Once you understand these basic concepts of the rights and obligations of the two option types, puts and calls, you can begin to see the various possibilities in using them to take advantage of market and stock forecasts in your overall investment or trading program.

However, before we move on, it also important to understand a fundamental factor in working with options. That is, they are a wasting asset. The option contract you buy or sell to implement a market forecast will have a limited life. Unlike shares of stock, which in most cases, when added to your portfolio could be forever, so to speak, the option contract will expire at a set time in the future. This means that when you do look to utilize the option to implement a trade based on a forecast, you will have to consider not only the forecast - either up, down or neutral for the stock - but also a time horizon for that forecast to play itself out. This time factor is one of the most critical elements in options to be aware of and understand before making any trade. So this then is one of the differences between buying a stock versus buying the option on the stock.

Another element of difference is the concept of leverage when using options. Leverage can be defined as "the ability to control a large amount of something using a very small percentage of its value." Leverage, as it pertains to an option contract, allows you to control an amount of the underlying stock (usually 100 shares) for a small amount of what would be the cash purchase price for the 100 shares had you bought the stock. This amount is the premium or cost for buying that right to buy or sell the u

Dear Trader,

Orders in equity securities or options are immediately routed to market centers for execution. A market center is defined as an exchange, over-the-counter market maker, alternative trading system/ECN or other national securities association.

Limit orders are held on the market center's book to be displayed in accordance with order handling rules until they are filled. Stop orders are held by a market center until the stop price is triggered, and once that occurs, the order becomes a market or limit order. The exception are "Advanced Orders," such as trailing stop orders, which are held at Scottrade while they "trail" a stock's price. Once triggered, those orders are routed to a market center.

For more information on our order routing practices, visit our Order Routing & Execution page.

Sincerely,
Mitul Nakum

Mitul Nikum is Team Leader of Trading Services at Scottrade