Using the Active Trader Tab

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Video Transcript:

Hello, traders. Welcome to the Thinkorswim tutorial and the fourth module, trading. In this video we’re going to learn how to place trades with the active trader subtab on the Thinkorswim platform. To go to the active trader subtab, you just go to the trade tab and click on active trader.

Active Trader sub-tab

Now you can see that the active trader subtab is divided in two. On the left side of the screen you have the chart of the instrument you are trading, and on the right side of the screen you have the depth of market or the ladder. On the ladder you can see how many orders you have on the buy side of the market and how many orders you have on the sell side of the market. Now, to place an order with the with the ladder, it’s very easy on Thinkorswim.

Let’s say that we want to place a buy order once price hits the $1.52 level. If you want to do so you just go down to the $1.52 level and you hover your mouse on the bid side of the ladder and you click on your mouse. This will prompt out the order confirmation dialog and you just have to send it to the exchanges. And as you can see on the charts and on the ladder, we have one working order which is the buy limit order at the $19.52 level. When you have a buy order and that you cannot see the price on the ladder, this little green arrow will tell you that you have one limit order on the buy side of the market below the $1.50-$4.50 level which is the last level there were you can see. So you just have to move down on the ladder to watch the actual order right here. If you wish to delete your order, you just click on the red X right to the order tab and this will delete your pending order.

Now, on the right side of the active trader tab, you can see that not only you have the ladder, but you have the position that you have on the instrument. Right now we are flat. The average price, the PNL open, and the PNL for the day. We have made a few trades today, and we are up $237.50. Now if you wish to place a sell order. Let’s say at the $19.59 level you can do so by clicking on the $9.59 level. Let’s say that we want to place an order at the $1.60 level. Okay, you just click on the $1.60 level on the sell side of the of the ladder and this will prompt out the order confirmation dialogue. You check it that you are sending a limit order on the [inaudible 00:3:08] 7500 at the $19.60 level and send the order to the exchanges. And as you can see we have one sell limit order right here and. If you wish to delete this order just click on the red cross next to the order tab.

active trader on thinkorswim

Now you can also buy the market and sell the market within the active trader with these two buttons right here. Let’s say that we wish to buy the market. You just click on buy market and this will prompt the order confirmation dialogue which says that. On the order description of buy one contract and [inaudible 00:03:46] 7500 at market. If you send it, it will send a market order that is now waiting to be filled. And as you can see, we are now long one contract at the [inaudible 00:04:02] 500 at the $19.55 level. So you can see right here that the $19.55 level is highlighted, okay, with these two yellow arrows around the price level which means that this is where our position is. You can look at your position at the top of the ladder right here. Again, we are long one contract, and the average price on which we were filled is $19.55. Now, this is the PNL that our open position holds and the PNL for the day. If you wish to close this order right now at market, you just have to click on this button right here, and this will flatten your position. This means that this will close your position by selling 100% of your current one contract on the [inaudible 00:05:06] 500. Check yes, it will flatten your position, and as you can see you are now flat and you have no longer an open PNL.

Now let’s say that you don’t want to flatten your position, okay? I’m going to send a buy market order again and you don’t want to flatten your position, but the market is going against you. You can also choose to reverse your position by clicking on the reverse button right here. This will actually reverse your position by selling two contracts. Why is it going to sell two contracts? Because we are long one contract, and we need we need one contract to close the long position and one contract to sell the [inaudible 00:05:49] 500. If you click okay, this will close your loan position and often as short position. As you can see right here, we are minus one on the [inaudible 00:06:01] 500. If you wish to close this trade just flatten your position by clicking on the flatten button at the top of the ladder.

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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