How to Use the Spread Book

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Video Transcript:

Hello traders and welcome to the Thinkorswim Tutorial and the Sixth Module: Scan Tab. In this lesson, I’m going to teach you what the Spread Book is on the Thinkorswim platform.

Spread Book tool on thinkorswim platform

You can find Spread Book just by clicking on the Scan Tab and then clicking here on Spread Book. What a Spread Book does is it’s actually a scan tool that allows you to see Thinkorswim clients’ orders in real time. With this tool, you actually can look or search open orders by Spread Type. Here you have all the Spread Types available on the Thinkorswim Platform and, of course, by symbol or by financial instrument. Let’s say that we want to look for all the vertical spreads on SPX. We just go in and here you are. We have all the working vertical spreads on SPX within the Thinkorswim platform or by the Thinkorswim users.

Remember that these are working orders. This means that these orders are not yet filled. At any given moment, these Thinkorswim clients can just choose to delete them. All the working orders within the Spread Book are completely anonymous, and you cannot know for sure if this is an opening order or a closing order. But you can see the time that these orders were placed, the quantity of contracts that were placed with the order, the strike price, the time in force, etc.

Within the Spread Book, what you can do is create duplicate orders for you to trade the same spread that you found here. For example, let’s say that you want to trade this spread or this vertical spread, you just click on the Blue Circle and click on Create the Duplicate Order. Of course, you can create an opposite order or you can analyze the trade.

Let’s start by creating a duplicate order. You can see right here that you have the order entry here and save orders tab at the bottom of the Thinkorswim platform. Right here, you can change the number of contracts, the size of the trade, the strike prices or whatever settings it is that suits your trading needs.

Of course, it is important to understand that you have the ability to take the other side of any trade that you find here on the Spread Book. For example, if you look at this vertical spread, you can click on the Blue Circle and create opposite order. This will create an opposite order to this order that you found on the Spread Book. This all can be done within the Spread Book and remember that once you place an order or a Spread Order here on the Thinkorswim platform, your order will be shown to other traders, anonymously, of course, on the Spread Book as well.

Adam

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