How to use the Forex Trader Sub-Tab

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Video Transcript:

Hello traders. Welcome to the thinkorswim tutorial and the fourth module, trading. In this lesson we are going to learn how to use the Forex Trader on the thinkorswim platform. To open the Forex Trader you just go to the trade tab and then click on the Forex Trader sub-tab. This will bring out this grid. And as you can see, we have the Forex account information with your buying power, the cash, the P&L, the equity, etc.

Forex trader sub-menu

Now, this gird is customizable by clicking on the grid icon at the top right of your platform and just choosing from 4 to 27 windows on your Forex Trader sub tab. We are going to choose to only have one because I want to show you how this actually works. As you can see right here we are looking at the EURO/USD and we are looking at the best bid and best ask price. If you want to buy one mini lot of the EURO/USD, you just click on the “Buy” button and if you wish to sell one mini lot of the EURO/USD, you just click on the sell button.

Now this not very helpful because you do not have all the information you need. First of all, let’s bring up a chart and you can bring up a chart by just clicking on the chart icon and looking at…right now we are looking at the one minute EURO/USD chart. You can also bring time and sales on the EURO/USD and you can bring out the newsfeed on the EURO/USD.

Forex trader tab thinkorswim
Now this is actually much, much better. We have the chart window, we have the news window and we have the dashboard on the Forex Trader. Now, if you want to change from one mini lot, which is 10,000 units of the base currency, you just go ahead and click on the “Up” button to go to two mini lots, three mini lots, four mini lots or five mini lots. We are going to stick with one mini for this demonstration. Let’s assume that we want to buy the EURO/USD right now. You just click on the “Buy” button on the dashboard and this will bring out the order confirmation and order entry and modification window. Right now we have a buy order on the EURO/USD at this price on a limit order. We want to change that into a market order because we want to buy it right now. So we confirm and send this order and we just send it. Right now you can see that we have sent one mini lot on market and right here at the top left side of the platform you can see that we have been filled.

You have the floating Forex P&L account information, as well as on the Forex Trader top information bar. We have the margin required for this position, which is $226 and of course, the buying power left after the trade. If you go to the monitor tab, you can see that we do have on the Forex sub-tab one trade open with one mini lot and we are down $4 or $5 on it. If you go back to the Forex Trader, you can choose to close your trade by selling the same amount of EURO/USD but earlier, just click on the sell button, change this into a market order and send it to the exchanges.

ThinkorSwim Platform Forex trader

As you can see, we have now one mini lot that has been filled and if we go to monitor sub-tab, we are no longer in a trade on the EURO/USD and we made $1.60 from that [inaudible 00:04:45] trade. If we go back to the Forex Trader and choose to have more than one window open, we can do so by clicking here and as you can see, all the information that was on the window is of the EURO/USD is saved. Now if you wish to open, let’s say the GBP/UDS, you can do so by writing the symbol on the top left side of the window and you can also chose to have chart and the news on each and every single one of the sales.

You can also link the sales with the color square right here and this will actually link your sales. You can do this because if you want to have only the chart on the top side of your Forex Trader window, you can do so by doing this and only having the dashboard on the bottom side. This means that you can have your charts and work on your charts on the top side of your screen and trade on the bottom side of your screen. This is actually pretty helpful when you are scalping Forex or when you are actually day trading Forex, you can have as many as seven charts on this position right here, which means that for example, if we choose to have six windows, we can have three charts and three dashboards. And the way I do this guys is, well, I link the chart to the dashboard on the bottom. This means that I choose a color for the chart and I choose the same color for the dashboard. This means that if I am looking at the EURO/USD right here, I am going to do the same for the third chart and for the third dashboard. If I am looking at the EURO/USD, I am 100% sure that this dashboard is going to be also for the EURO/USD.

Because if you don’t link them you can from time to time change the symbol on the chart but not change the symbol on the dashboard, which will mean that you will be analyzing price action on the EURO/USD but trading another Forex pair, which is not very good strategy for professional traders, if you know what I mean. So I am going to show you on the third chart and the third dashboard how a linked dashboard and chart works. You can see we have the EURO/USD dashboard at the bottom of this blank chart, so I am going to choose to see the USD/JPY on this chart window. You can see that my dashboard also changed to the USD/JPY.

Adam

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