Off the Chart Trading

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Video Transcript:

Hello traders. Welcome to the thinkorswim tutorial at the fourth module, trading. In this lesson we’re going to learn how to trade right off the charts on the thinkorswim platform. Now, as you can see right here, we are on the one minute E-mini S&P 500. I’m going to show you how to trade right off the charts and one of the good things about this platform is that you have the ability to do so. Let’s say for example that we already know that this is the daily high on the E-mini S&P 500 and we want to sell the daily high. This is by no means a trading strategy, but only a video on how to place orders.

off the chart trading on thinkorswim platform

Now, what you are going to do, and it’s easier if you do it, is you’re going to choose the crosshair tool right here at the bottom left side of the screen or your chart and you are going to place the cursor right at the price level that you want to trade. When you have the cursor placed at the level that you want to trade, you are going to right-click your mouse and this will prompt out a menu on the thinkorswim platform.

Now as you can see, you can buy or you can sell contracts on the E-mini S&P 500. If you wish to place a buy order, you are going to go and hover your mouse over the buy sub-menu and click on “Single,” but because we want to place a sell order, we are going to hover our mouse on the sell sub-menu and click “Single.” This is going to prompt out the order confirmation dialogue. Now, the order confirmation dialogue will show you the order description, which is a sell one contract on the E-mini S&P 500 at this price level. It’s going to show you the cost of trades and commissions and fees. The buying power in effect, this means that to trade one contract on the E-mini S&P 500 you have to have at least $5,016 in your account. Of course, it’s going to show you the result of buying power stocks and options.

Trading off charts

Now, you can place a note on this trade and we’re going to place one just so you can see how this is going to affect your order confirmation dialogue. Now, let’s say that this is a Sunday trade because today is Sunday and the market just opened and this is going to be our note on the trade and you can choose to save this order, to edit this order, delete it or to send it. If you send it, this will actually send the order to the exchanges and you are going to be on an active order. Now, we are going to edit this order right now. The way to edit it is you click on the “Edit” button and this will prompt out the order entry tools. Now, here you can edit all aspects of the order or we are going to try to sell two contracts on the E-mini S&P 500 and we are going to choose a limit order. Remember that if you want to sell right now, you can choose to do so by just clicking here on market, but because we want to be filled at the daily highs, we are going to place a limit order. Of course, I’m going to choose a good until canceled. This will leave our pending order until it is canceled or until it is filled.

Now let’s send it right now. Just when you have confirmed the addition on your order you just confirm and send it. This will prompt out the order confirmation dialogue and you have to click on “Send” this order to the exchanges. Now the order has been sent and as you can see, right now we have a two contract limit order at this level on the market. Now, let’s say that we want to place a market order on the E-mini S&P 500. You just right-click on any place on the chart. You put a single sell order, then you have to edit it, remember, because we want to sell two contracts on the E-mini S&P 500 and we want to sell it at market. This means we are going to sell the two contracts on the E-mini S&P 500 at the current market price.

If you click “Confirm and Send,” this will prompt out the order confirmation dialogue on which you have to click “Send.” We are now sending two contracts on the E-mini S&P 500 at market and as you can see at the top left side of the screen, you will have been filled. If we go back to the trade or if we click here on the double yellow arrow pointing up at the bottom left side of your chart, you can see that we have sold two contracts on the E-mini S&P 500. We have two working orders on the E-mini S&P 500; one that is working, which is the limit order of the daily highs, and one that was filled right now on the market order that we just sent.

Now, if you wish to see the trade that we are on right now, you just go to “Monitor,” and you can see that we have, in fact, two working orders right here on the E-mini S&P 500; one that was filled right now, on which we are $700 up, and one that is working right here. If you wish to cancel this order, just click on the circle right at the left side of the order and click “Cancel order.”

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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