Clal Finance Batucha Global Trade

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2 Table Of Contents Get Started...9 Log in...9 Add a Market Data Line Create an Order Modify an Order Transmit an Order Cancel an Order Trading Window Order Management Modules Add a Market Data Line in Symbol Mode Create an Order Modify an Order Transmit an Order Cancel an Order Deactivate an Order Bond Market Data Add a Trading Page Trading Bonds Order Ticket Window - Time in Force Adjustable Orders Order Ticket Window - Pegged Volatility Trading Order Ticket Window - Conditional Order Ticket Window - Miscellaneous Update Limit Price... 53

3 Create "Instantaneous Transmit" Hot Key Open BookTrader Trade with BookTrader BookTrader Window BookTrader Colors Create Option Chains Create/Edit Toolbar Buttons OptionTrader Menu Send a Basket Order Create Basket File through TWS Create Basket File Manually Create a Basket File using Excel Create a Combination Order Using the Combination Composition Window Transmit a Combination Order Notes on Combination Orders Volatility Trading Volatility Page Layout Determine Order Quantity Calculate Order Quantity Advisors - Allocating Shares Create an Order for Multiple Clients Create Account Aliases Create a Share Allocation Profile Create an Account Group for Share Allocation Edit a Share Allocation Profile

4 Advisors - View Execution Reports for SMAs Advisors Account Window Order Defaults and Hot Keys Default Order Settings Window Default Offset Amount Modify the Stop Trigger Method Edit SmartRouting Directives Update Limit Price Assign Quick-Action Hot Keys Customize Hot Keys Create "Instantaneous Transmit" Hot Key Assign Mouse Shortcuts DepthTrader Monitor the Market Depth Create an Order from the Market Depth Window View Level II Quotes Rebalance Your Portfolio Basic Order Types Create a Limit Order Create a Limit if Touched Order Create a Market Order Create a Market if Touched Order Create a Limit-On-Close Order Create a Market-On-Close Order Market with Protection Order Create a Market-to-Limit Order

5 Pegged to Stock Orders Pegged-to-Market Order Pegged-to-Primary Order Create a Box Top Order Price Improvement Auction Create a Relative Order Create a VWAP Order Create a Stop Order Create a Stop Limit Order Create a Trailing Stop Order Create a Create a Trailing Stop Limit Order Times in Force Create a "Good After Time" Order Create a Fill or Kill Order Auction Order Create a Market-on-Open Order Create a Limit-On-Open Order Time in Force for Orders Order Attributes Create a Hidden Order Create a Discretionary Order Create an Iceberg Order Create an All or None Order Minimum Quantity Orders Create Block Orders Create a Sweep-to-Fill Order

6 Create a One-Cancels-All (OCA) Order Advanced Order Types Adjustable Orders Create an Auto Trailing Stop Order Create a Bracket Order Create a Conditional Order Create a Scale Order Market Data Tools Enable Quick Stock Entry Price/Risk Interactive Analytics SM Show/Hide the Index Arbitrage Meter Portfolio Analytics Portfolio Analytics - Position Portfolio Analytics - Position Risk Portfolio Analytics - Underlying Summary Portfolio Analytics - Dimension Summary Value at Risk Summary Portfolio Analytics - Portfolio Risk Portfolio Value Sub-Portfolio Value Create What-If Portfolio Scenarios

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8 Get Started Log in To log in from your browser 1. In the Login box in the upper right corner of the homepage 2. Enter your user name and password.

9 Add a Market Data Line Before you can trade, you need to add market data lines for your assets. A market data line represents an individual ticker, and displays the product type, order destination, ask and bid prices, and other defining attributes. You can add a market data line by typing directly in the Underlying column of the trading screen, or by using the Request Ticker by Underlying box. NOTE: Advanced/options traders can add security definitions by entering the exchange contract class or contract symbol. To add a ticker line directly to the trading screen 1. Click in an empty row in the Underlying column. 2. Enter the instrument's underlying ticker symbol and press ENTER. 3. Select the instrument type from the list. 4. In the Contract Description box, select a contract and click OK. You can limit the contracts displayed in the right pane by selecting an exchange or a currency from the Filter section. Choose Smart to use SmartRouting. Market data lines are active when visible, regardless of where they originate. Each alarm always uses one line of market data whether or not you are viewing the asset that contains the alarm. Market data requested through an API has top priority, followed by data requested by alarms, and finally basic market data display. This means that if you have are viewing a trading page that includes 100 lines of market data, and you also have priceactivated alarms set for 6 other contracts, those 6 contracts will receive market data, and your trading page will only show data for 96 contracts. The option chains on Option Trader do not count against available market data lines. 10

10 To add an asset using the Request Ticker by Underlying box 1. Do one of the following to open the Request Ticker by Underlying box: Click the Ticker icon on the Trading toolbar. On the Ticker menu select Add Symbol. Select Ticker from the right-click menu anywhere on the trading screen. 2. Enter the underlying ticker symbol. 3. Select the instrument type from the list. 4. From the Contract Selection window, select "Smart" to use SmartRouting, or choose a specific order destination. NOTE: If you add a market data line for an option, a new line for the option's underlying asset is automatically created at the top of the page. This price of the underlying is used for model pricing and risk analysis calculations. This line cannot be deleted until all corresponding options have been deleted. 11

11 Create an Order This procedure describes one method of sending an order. To review other techniques for completing actions, see Navigate the Application. To create and transmit an order from a market data line 1. Click the "Ask" or "Bid" price of an asset (or use your buy or sell hot key on the selected Market Data line) to create an Order Management line directly below the selected asset. Click the Ask Price to create a Buy order. Click the Bid Price to create a Sell order. 2. On the Order Management line, modify the order parameters Time in Force, Action, Quantity, Price, Order Type, or Destination, if needed. Set the Limit Price to automatically update to the bid, ask, midpoint, last or closing price. NOTE: To trade more efficiently, set the Quantity and Order Type defaults using the Order Defaults window. 3. To transmit your order, use the right-click menu and select Transmit, click the XMIT icon on the Trading toolbar, or use your Transmit hot key or mouse shortcut. NOTE: Unless you specify otherwise, all of the orders for a specific ticker are displayed on each page on which that ticker appears. To modify this setting to only display working orders on the page on which they were created, on the Page menu select Settings. Uncheck the Show all orders checkbox. This setting does not affect the Pending page. All orders are always displayed on the Pending page. 12

12 Modify an Order You can modify an order up until the time it has been executed at the order destination. Until this occurs, the order remains visible and editable on both the asset's order management line and the Pending page. An order is "working" if the order status is green. Note that VWAP orders are accepted immediately and cannot be modified. NOTE: If you want to modify parameters other than Price and Quantity, you must cancel this working order, and create and transmit a new order. This practice is commonly required by order destinations. To modify price and quantity in a working order 1. On the Order Management line, click in the Price or Quantity fields and make your change. 2. Use the right-click menu and select Transmit, click the XMIT icon on the Trading toolbar or use your Transmit hot key to transmit your modified order. To undo changes before you transmit, right-click and choose Restore. NOTE: You may receive an execution on the original order before your modified order has replaced it on the exchange. Please see the Customer Agreement for specific details on modifying and canceling an order. 13

13 Transmit an Order Once you have verified the order parameters on an order management line, you are ready to transmit your order. To transmit an order Use the right-click menu on the order management line and select Transmit, or Use your "Transmit" hot key, or Click in the Transmit column on your trading screen Click the Transmit icon on the Trading toolbar After a transmitted order is accepted at the order destination, it becomes a "working" order. All working orders appear on the Pending page and on each page that displays the asset. The page name on any page that displays the asset will turn red. To transmit all orders on a page On the Order menu select Transmit Page. Note: The dollar value in parenthesis reflects the value of all orders on the active page. The color of the Status field on an order management line conveys the following information: LIGHT GRAY indicates that you are in the process of creating an order and you have not yet transmitte it. LIGHT BLUE indicates that you have transmitted your order, but have not yet received confirmation that it has been accepted by the order destination. GREEN indicates that your order has been accepted at the order destination and is working. MAGENTA indicates that you have sent a request to cancel the order but have not yet receive cancel confirmation from the order destination. At this point, your order is not confirmed canceled. You may still receive an execution while your cancellation request is pending. RED indicates that the balance of your order has been confirmed as canceled by the system. T could occur unexpectedly when the system or the destination has rejected your order. Once the order is confirmed canceled, the Order Management line will disappear from your trading screen after 30 seconds. Please see the Customer Agreement for further information o order confirmation and order cancellation. DARK BLUE indicates that a simulated order type has been accepted by the system and that this order yet to be elected. The order is held in the system (and the status remains DARK BLUE) until the electio criteria are met. At that time the order is transmitted to the order destination as specified (and the ord status color will change). 14

14 MAROON indicates that an attached simulated order type has been accepted by the system and has ye be elected. The order is held in the system (and the status remains MAROON) until the election criteria are met. At that time the order is transmitted to the order destination specified and the order status co will change appropriately. 15

15 Cancel an Order For a non-transmitted order, the Cancel command deletes the selected order from your trading screen. For a working order, the Cancel command sends a cancellation request to the order destination. See the table below for the meaning of status colors on an order management line. You can cancel a working order up until the time it has been executed at an order destination. You can also choose to cancel all orders on a page or all orders on your workstation. When you choose a "Cancel all" command, both non-transmitted and working orders are cancelled. To cancel either a non-transmitted or a working order Right click on the order management line you want to cancel and select Cancel, or Select the order you want to cancel and from the Order menu select Cancel, or Select the order you want to cancel and use your "Cancel" hot key, or Select the order you want to cancel and click the Cancel Icon on the trading toolbar. To cancel all orders (working and non-transmitted) on a trading page 1. Open the page that contains the orders you want to cancel. 2. On the Order menu, select Cancel Page. 3. At the prompt asking if you want to cancel all orders on the page, click Yes. To cancel all orders (working and non-transmitted) on your workstation 1. On the Order menu, select Cancel All. 2. At the prompt asking if you want to cancel all orders, click Yes. The Status field on an order management line uses color to convey the following order status information: LIGHT GRAY indicates that you are in the process of creating an order and you have not yet transmitted it. LIGHT BLUE indicates that you have transmitted your order, but have not yet received confirmation that it has been accepted by the order destination. GREEN indicates that your order has been accepted at the order destination and is working. MAGENTA indicates that you have sent a request to cancel the order but have not yet received cancel confirmation from the order destination. At 16

16 this point, your order is not confirmed canceled. You may still receive an execution while your cancellation request is pending. RED indicates that the balance of your order has been confirmed as canceled by the system. This could occur unexpectedly when the system or the destination has rejected your order. Once the order is confirmed canceled, the Order Management line will disappear from your trading screen after 30 seconds. Please see the Customer Agreement for further information on order confirmation and order cancellation. DARK BLUE indicates that a simulated order type has been accepted by the system and that this order has yet to be elected. The order is held in the system (and the status remains DARK BLUE) until the election criteria are met. At that time the order is transmitted to the order destination as specified (and the order status color will change). MAROON indicates that an attached simulated order type has been accepted by the system and has yet to be elected. The order is held in the system (and the status remains MAROON) until the election criteria are met. At that time the order is transmitted to the order destination specified and the order status color will change appropriately. NOTE: Your working order is not confirmed CANCELED until the status field turns red. Please see the Customer Agreement for further information on order confirmation/cancellation. 17

17 Trading Window The Trading window comprises: The Menus, located at the top of the page below the title The dockable Trading toolbar, located immediately below the menus The Pages tabset, located below the Trading toolbar and along the top of the column headings The Rapid Order Entry panel The Order Management panel, which encompass the Contract Description columns (Underlying, Exch and Description) and the Market Data and Order Management columns described in the tables below. The Contract Description columns display information about the asset on a market data line. The Underlying column contains the asset's underlying symbol. The Exch column displays the default order destination you set for this asset. The Description column holds a summary of other contract parameters, including the instrument type, expiration date, strike price, option right and market segment when appropriate. The Trading screen pictured below is in the default entry mode (Underlying), and shows all market data lines. The column headings in the top-most row above the trading area (Position, P&L, Bid Size, Bid Price, Ask Price, Ask Size, Last Price, Change, and Last Size) apply to information on the Market Data line. The table below has field names and descriptions. A Market Data line provides real-time data specific to the product represented in the Underlying column. All available columns are described in the table below, although they may not appear in the graphic. To hide and display columns, use the Page Layout Manager. 18

18 Available Market Data Columns Column Name Description Underlying (Symbol) Exch Description Position Avg cost P&L Unrealized P&L Bid Exch Bid Size Bid Price Model Ask Price Ask Size Ask Exch Last Price Change The underlying symbol or exchange symbol for the contract. To toggle between underlying and symbol mode, on the View menu select the desired mode. The exchange to which orders for the contract will be routed. Select SMART order routing to route directly to the best available market. Identifies the instrument type and other descriptive contract information. Your current position in the selected contract. The average cost of the current position. Displays unrealized gains or losses. To modify the P&L calculation used, on the Page menu click Layout. On the Columns tab, select P&L in the Market Data Row section and click Customize. Select either New Position P&L or Daily P&L. Displays unrealized gains or losses. Calculates unrealized P&L for stocks, stock options and futures options. Unrealized P&L is calculated using the formula: (current market price - average cost/share) x total number of shares The average cost per share is updated in realtime. Used only for options. Identifies the exchange(s) posting the best bid price on the options contract. The approximate depth of the current bid. The best bid price for a contract. This is the best price at which you could currently SELL. For options. The option model price is calculated using the underlying price, interest rate, dividends and other data that you enter using the Option Modeler. The best ask price for a contract. This is the best price at which you could currently BUY. The approximate depth of the current offer. Used only for options. Identifies the exchange(s) posting the best ask price on the options contract. The last price at which the contract traded. A "C" in front of the last price indicates that this is the previous day's closing price. How much the current price has risen or declined from the previous day's closing price. If the price has declined, the background is red. If the price has risen, the background is blue. To toggle between dollar change and percent change, 19

19 Column Name Description click the column title. Change (%) Last Size Imp Vol (%) High Low Volume The percentage that the current price has risen or declined from the previous day's closing price. If the price has declined, the background is red. If the price has risen, the background is blue. To toggle between percent change and dollar change, click the column title. The size of the last contract traded. If the last contract traded is larger than the previous one, the font is green. If it's smaller, the font is red. For options. The implied volatility is based on the average of the best bid and offer for an option. This calculation is non-linear, and may not converge for low vega options. In such cases, no implied volatility estimate will be displayed. High price for the day for the selected contract. Low price for the day for the selected contract. Trading volume for the day for the selected contract. The Trading window below is operating in Symbol entry mode and shows both a Buy and Sell Order Management line. Column headings in the bottom-most row above the trading area (Time in Force, Action, Quantity, Lmt. Price, Aux. Price, Type, Transmit, Cancel, Status and Destination) apply to information on an Order Management line. The table below has field names and descriptions. 20

20 An Order Management line contains information about the order you have created, and appears immediately below the Market Data line for the asset you're trading. All available columns are described in the table below, although they may not appear in the graphic. To hide and display columns, use the Page Layout Manager. Order Management Columns Column Name Trailing Key Account (Allocation) OCA Group Time in Force GTD Expire Action Quantity Lmt Price Description System-created key to identify pieces of a bundled limit, bracket or trailing stop order. Displays the account number of the beneficial account. (For FA accounts, the Allocation column lets you select an account, create a new allocation profile, allocate shares based on percent of equity in each account, or define an absolute number of shares to be allocated to specified accounts. Allows you to create a one-cancels-all advanced order group without opening the Order Ticket window. The time period during which your order remains active: Day order or Good-Til-Canceled. Keeps the order active until the close of market on the date you enter. Date format is YYYY/MM/DD. The order action. BUY, SELL or SELL SHORT. The number of units in your order. The limit price for order types to which this price applies, including Limit, Stop Limit, and Relative orders. 21

21 Column Name Description Aux. Price This field reflects the Election price for Stop and Stop Limit orders, and the Offset Amount for Relative and Trailing Stop orders. You can set these auxiliary amounts in the Default Order Settings box. Stop Price The Election price for Stop and Stop Limit orders. Type The order type. Transmit Click to transmit the order. Cancel Click to cancel the transmitted order. Status The order status. See Guide to System Colors for details. Dest. The order destination. Swp Fill Check to create a sweep-to-fill order. Disp Size Enter a display size to create an iceberg order. Origin The customer type from which the order originated. Mainly used for institutional accounts. Hidden Check to create a hidden order. Discretionary Enter a discretionary amount with a limit order to create a discretionary order. Volatility Displays volatility for the option at a specific strike price. The Trading Toolbar The Trading toolbar is movable and configurable. To add or remove buttons, rightclick in the toolbar and select Configure Toolbar. To move and dock the toolbar, click and drag on the textured drag bar to the left of the first toolbar icon. The Trading Pages You can create up to 24 trading pages, each of which can hold up to 40 market data lines. Navigate between pages by clicking the appropriate tab in the Pages tabset. Each Trading page lists Contract, Exchange, and Description on the left. Each contract contains a Market Data line that displays the Bid Exchange, Bid Size, Bid Price, Ask Exchange, Ask Size, Ask Price, Last Price, Change, and Last Size. When you create an order, an Order Management line appears directly below the asset's Market Data line. 22

22 Order Management Modules Add a Market Data Line in Symbol Mode Advanced options traders can use Symbol mode to enter security definitions for options directly into a market data line. Symbol mode requires that you enter the contract symbol or class as defined by the exchange on which it's trading. To change to Symbol mode, on the Configure menu select View and then select Contract Display View both the Underlying and contract Symbol by adding the market data Symbol column using the Page Layout. To add an options security definition directly to the trading screen 1. Click in an empty row in the Symbol column. 2. Enter the security definition by contract class or contract symbol, and press ENTER. Use the formats in the table below. Symbol Entry Formats contract exchange acronym contract symbol # exchange acronym To add an options security definition using the Request Ticker by Exchange Symbol form 1. In symbol mode, do one of the following to open the Request Ticker by Exchange Symbol form: Click the Ticker icon on the Trading toolbar. On the Ticker menu select Add Symbol. Right click anywhere on the trading screen and select Insert Ticker. 2. In the Instrument Type field select Option. 3. Select the Symbol Type. If you select Do this Class Contract Enter the contract class symbol, exchange, expiration date and strike price, and select the rig Enter the exchange local symbol and the exchange.

23 Create an Order This procedure describes one method of sending an order. To review other techniques for completing actions, see Navigate the Application. To create and transmit an order from a market data line 1. Click the "Ask" or "Bid" price of an asset (or use your buy or sell hot key on the selected Market Data line) to create an Order Management line directly below the selected asset. Click the Ask Price to create a Buy order. Click the Bid Price to create a Sell order. 2. On the Order Management line, modify the order parameters Time in Force, Action, Quantity, Price, Order Type, or Destination, if needed. Set the Limit Price to automatically update to the bid, ask, midpoint, last or closing price. NOTE: To trade more efficiently, set the Quantity and Order Type defaults using the Order Defaults window. 3. To transmit your order, use the right-click menu and select Transmit, click the XMIT icon on the Trading toolbar, or use your Transmit hot key or mouse shortcut. NOTE: Unless you specify otherwise, all of the orders for a specific ticker are displayed on each page on which that ticker appears. To modify this setting to only display working orders on the page on which they were created, on the Page menu select Settings. Uncheck the Show all orders checkbox. This setting does not affect the Pending page. All orders are always displayed on the Pending page. 24

24 Modify an Order You can modify an order up until the time it has been executed at the order destination. Until this occurs, the order remains visible and editable on both the asset's order management line and the Pending page. An order is "working" if the order status is green. Note that VWAP orders are accepted immediately and cannot be modified. NOTE: If you want to modify parameters other than Price and Quantity, you must cancel this working order, and create and transmit a new order. This practice is commonly required by order destinations. To modify price and quantity in a working order 1. On the Order Management line, click in the Price or Quantity fields and make your change. 2. Use the right-click menu and select Transmit, click the XMIT icon on the Trading toolbar or use your Transmit hot key to transmit your modified order. To undo changes before you transmit, right-click and choose Restore. NOTE: You may receive an execution on the original order before your modified order has replaced it on the exchange. Please see the Customer Agreement for specific details on modifying and canceling an order. 25

25 Transmit an Order Once you have verified the order parameters on an order management line, you are ready to transmit your order. To transmit an order Use the right-click menu on the order management line and select Transmit, or Use your "Transmit" hot key, or Click in the Transmit column on your trading screen Click the Transmit icon on the Trading toolbar After a transmitted order is accepted at the order destination, it becomes a "working" order. All working orders appear on the Pending page and on each page that displays the asset. The page name on any page that displays the asset will turn red. To transmit all orders on a page On the Order menu select Transmit Page. Note: The dollar value in parenthesis reflects the value of all orders on the active page. The color of the Status field on an order management line conveys the following information: LIGHT GRAY indicates that you are in the process of creating an order and you have not yet transmitted it. LIGHT BLUE indicates that you have transmitted your order, but have not yet received confirmation that it has been accepted by the order destination. GREEN indicates that your order has been accepted at the order destination and is working. MAGENTA indicates that you have sent a request to cancel the order but have not yet received cancel confirmation from the order destination. At this point, your order is not confirmed canceled. You may still receive an execution while your cancellation request is pending. RED indicates that the balance of your order has been confirmed as canceled by the system. This could occur unexpectedly when the system or the destination has rejected your order. Once the order is confirmed canceled, the Order Management line will disappear from your trading screen after 30 seconds. Please see the Customer Agreement for further information on order confirmation and order cancellation. 26

26 DARK BLUE indicates that a simulated order type has been accepted by the system and that this order has yet to be elected. The order is held in the system (and the status remains DARK BLUE) until the election criteria are met. At that time the order is transmitted to the order destination as specified (and the order status color will change). MAROON indicates that an attached simulated order type has been accepted by the system and has yet to be elected. The order is held in the system (and the status remains MAROON) until the election criteria are met. At that time the order is transmitted to the order destination specified and the order status color will change appropriately. 27

27 Cancel an Order For a non-transmitted order, the Cancel command deletes the selected order from your trading screen. For a working order, the Cancel command sends a cancellation request to the order destination. See the table below for the meaning of status colors on an order management line. You can cancel a working order up until the time it has been executed at an order destination. You can also choose to cancel all orders on a page or all orders on your workstation. When you choose a "Cancel all" command, both non-transmitted and working orders are cancelled. To cancel either a non-transmitted or a working order Right click on the order management line you want to cancel and select Cancel, or Select the order you want to cancel and from the Order menu select Cancel, or Select the order you want to cancel and use your "Cancel" hot key, or Select the order you want to cancel and click the Cancel Icon on the trading toolbar. To cancel all orders (working and non-transmitted) on a trading page 1. Open the page that contains the orders you want to cancel. 2. On the Order menu, select Cancel Page. 3. At the prompt asking if you want to cancel all orders on the page, click Yes. To cancel all orders (working and non-transmitted) on your workstation 1. On the Order menu, select Cancel All. 2. At the prompt asking if you want to cancel all orders, click Yes. The Status field on an order management line uses color to convey the following order status information: LIGHT GRAY indicates that you are in the process of creating an order and you have not yet transmitted it. LIGHT BLUE indicates that you have transmitted your order, but have not yet received confirmation that it has been accepted by the order destination. GREEN indicates that your order has been accepted at the order destination and is working. 28 MAGENTA indicates that you have sent a request to cancel the order but have not yet received cancel confirmation from the order destination. At this point, your order is not confirmed canceled. You may still receive an execution while your cancellation request is pending.

28 RED indicates that the balance of your order has been confirmed as canceled by the system. This could occur unexpectedly when the system or the destination has rejected your order. Once the order is confirmed canceled, the Order Management line will disappear from your trading screen after 30 seconds. Please see the Customer Agreement for further information on order confirmation and order cancellation. DARK BLUE indicates that a simulated order type has been accepted by the system and that this order has yet to be elected. The order is held in the system (and the status remains DARK BLUE) until the election criteria are met. At that time the order is transmitted to the order destination as specified (and the order status color will change). MAROON indicates that an attached simulated order type has been accepted by the system and has yet to be elected. The order is held in the system (and the status remains MAROON) until the election criteria are met. At that time the order is transmitted to the order destination specified and the order status color will change appropriately. NOTE: Your working order is not confirmed CANCELED until the status field turns red. Please see the Customer Agreement for further information on order confirmation/cancellation. 29

29 Deactivate an Order When you deactive an order, the order is cancelled at the exchange, but it remains on your trading screen for you to resubmit. To deactivate an order 1. Right-click an order management line and select Deactive. 30

30 Bond Market Data Information displayed on the trading screen for bonds, including the ask and bid prices, is calculated differently than for other securities. The table below defines market data fields whose values are unique to corporate bonds. Field name Bid and Ask Prices Bid, Ask, and Last Yields Bond Attributes Description The price for bonds is quoted as a percentage of its face relative to 100. A bid of 95 means the bond is trading at 95% of its face value. The yield-to-worst. This is the lower of yield to maturity and yields to all calls. The yield is only shown if it is offered on the exchange. These are optional fields that you can hide or display using the Layout Manager. Bond attributes of last sale price which may include: Non-standard settlement date (normal settlement for bonds is T + 3), including C - cash trade ND - next day trade S# - seller's option Other Attributes W - weighted average trade A - afterhours trade Last price This is an optional field that you can hide or display using the Layout Manager. Last price may have: a "c" following the price indicating that the price includes commission. an asterisk "*" following the price indicating a special price typically due to an arranged trade taking place outside prevailing market bid/ask. Last size Last size may show "est" following the size indicating that the size is an estimate, for trades with size greater than one million. 31

31 Add a Trading Page You can create up to 24 trading pages. You can enter as many lines of market data as you want, but at any one time you will only be able to see 40 active market data lines. Use the trading pages to sort your assets by instrument type, exchange, or your own trading system categories. Use the tabset to navigate between pages. You can also use a page-level feature called Quick Stock Entry, which will automatically complete a market data line for a stock using the set of order destinations you set up. Use the Page menu commands to add, edit and delete trading pages, and edit the page's layout. To add a page 1. On the Page menu, select New. 2. Enter a page name. 3. In the Layout dropdown, select a page layout. 4. Click OK. To edit page settings 1. On the Page menu, select Settings. 2. Modify the page name or assigned layout and click OK. To delete a page 1. On the Page menu, select Delete. 2. At the prompt asking if you want to delete the page, click Yes. NOTE: The Pending page is a system page that displays all of your working orders. You cannot delete or rename the Pending page, but you can edit order parameters. To edit a page layout 1. On the Page menu, select Layout. 2. Modify the desired characteristics and click OK. NOTE: Before you modify the page layout be aware that you are not simply changing the look of the active page, you are modifying an applied layout which may also be associated with other pages. To create a populated page using current positions On the Page menu select Create Portfolio Page. This creates a page with market data lines for each position you hold. These positions are displayed in the Portfolio section of the Account window. Each time you take a position, the Portfolio page is automatically updated to include market data for the new position. You can remove zero position tickers from this and other pages using the right-click menu on a page and clicking Clear Zero Positions. 32

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33 Trading Bonds Our bond-trading feature gives you direct access to US traded corporate bonds through the NYSE and Bond Desk ECN. Create Market Data Line for Bonds 1. Enter an underlying symbol and select Bond as the instrument type. 2. In the contract selection box choose the bond asset(s) for which you want to display market data and click OK. 3. Market data for the bond is displayed on the trading page. The following information is available on the market data line: CUSIP number - a nine-character ID for a specific security. Bond rating - identifies the credit rating of the issuer. A higher credit rating generally indicates a less risky investment. The bond ratings are from Moody's and S&P, respectively. Coupon - the interest rate used to calculate the amount you will receive as interest payments over the course of a year. Maturity date - the date on which the issuer must repay the face value of the bond. Issuer - the company who issued the bond instrument. NOTE: To see Details using the Details button, or using the right-click menu from a market data line, you must be running Java version 1.5 or higher. For instructions on downloading this latest version of Java, see Upgrading Java on the website. To see which version of Java you are currently using, on the Help menu select 34

34 Order Ticket Window Select from the available fields to create an order. The fields are context-sensitive, which means that only valid selections will be active. For example, if you select "Stock" as the security type, any fields specific to options and futures will be grayed out (inactive). If you select "Option," the option fields, including the expiry, strike price and right (put or call) will become active. NOTE: There are three useful icons in the upper right corner. The first is called the "Refresh Target" icon. Click it to activate; the center turns red. To automatically replace the current contract information with an asset you have selected on the trading screen, click the Refresh Target icon. The Question Mark icon will open the help topic related to the current screen. The pushpin icon will keep the current screen on top. Click to depress the pushpin and pin the screen on top, click again to release. You may want to use this feature to keep the screen visible if you go to the trading screen to select a new contract. To remove tabs and view all fields on a single la, select the Comprehensive view. Field Description Notes Contract radio button 35 Select Regular to create a single contract order. Select Combo to modify the interface and create a combination strategy or You will only see this field if you open the order ticket independent of a market data line. to do this, right click in a

35 Field Description Notes spread order. blank line and select Order. Underlying Exchange Primary Exchange Security Type Prem. Currency Exp. date Strike Option Type Action Order Type Quantity Display size Min. Quantity Limit Price Aux. Price Percent Offset 36 Displays the asset's underlying ticker symbol. Used in conjunction with the underlying symbol to identify the asset. Identifies the asset's primary exchange. Select the instrument type. Select the currency delivered against the purchase of the underlying currency. The option's expiration date. The option's strike price. Select the option type. Choose Buy or Sell Select an order type. Valid order types are determined by the underlying, exchange and security type selected. The number of units in the order. Enter a display size to create an Iceberg order. Enter the minimum quantity that must be available for the order to execute. Enter the limit price for Limit, Stop Limit and For Stop and Stop limit orders, this is the Stop election price. For Options relative to stock orders, this is the starting price. For trailing stop orders, this is the trailing amount. For Relative orders, sets the offset amount based on a percentage of the bid price for Buy orders or the Ask price for sell orders. To route your order to a different exchange, use the Destination field in the Order Description section. For options routed through Smart.

36 Field Description Notes Discretionary Amount Auction Strategy Improvement Cap Destination The amount off the limit price at which the order is still eligible to execute. For Pegged to Stock orders, select from Match, Improve or Transparent. Set a cap on the price improvement amount. Specifies the order destination. Enter an amount to create a Discretionary order. Available for options orders routed to BOX. For details see the Pegged to Stock order topic. For pegged to Stock orders on BOX Defaults to the value in the Exchange field. Only editable for orders initiated from a market data line. 37

37 Field Description Notes Time in Force Good After Time Exp. Date Exp. Time Regular Trading Hours Only The time period during which your order will remain active. Select DAY (day order), GTC (order remains active until it is cancelled), OPG (market or limit at the open order), or GTD (order remains working until the date/time specified in the two fields below. When checked, you can set a date/time after which the order will be submitted. Enter the expiration date for the order. Use the format YY:MM:DD. Order continues to work until close of market on that day. Enter the expiration time for the order. Use the format HH:MM:SS. Order continues to work up until the time and date specified. Checked by default. If unchecked, trading hours are determined by the opening/closing times of the order destination. Valid for GTD/GTT times in force. Valid for GTD/GTT times in force. Valid for US stocks listed on major exchanges. Not available for IOC, OPG (MOO and LOO), FOK, MOC or LOC

38 Field Description Notes orders. 39

39 Adjustable Orders Use the Adjust tab to change an order type or define a one-time adjustment to stop, stop limit, trailing stop and trailing stop limit orders. This tab will only become active and usable if your order type is one of the stop order types just mentioned. You can also define adjustable orders on the trading screen by customizing the layout (right-click in the column heading and select Customize Layout) and activating the following columns in the Order Row section: Adj Order Type, Trigger Price, Adj Stop Price, Adj Stop Lmt Price, and Adj Trailing Amt. NOTE: There are three useful icons in the upper right corner of the page: The first is called the "Refresh Target" icon. Click it to activate; the center turns red. To automatically replace the current contract information with an asset you have selected on the trading screen, click the Refresh Target icon. The Question Mark icon will open the help topic related to the current screen. The pushpin icon will keep the current screen on top. Click to depress the pushpin and pin the screen on top, click again to release. You may want to use this feature to keep the screen visible if you go to the trading screen to select a new contract. To remove tabs and view all fields on a single la, select the Comprehensive view. Field Description Notes Adjusted Order Type 40 When you select an adjusted order type, the The following example continues to unfold for

40 Field Description Notes Trigger Price Adjusted Stop Price Adjusted Stop Limit Price Adjusted Trailing Amount stop order you're adjusting will not trigger when the stop price is hit. Instead, it will be changed to this order type, and use the other parameters below. Select one of the stop order types. When your current stop price is penetrated, it will change to this order type and use the instructions you set in the following fields. This price will trigger the adjusted order you defined in the Adjusted Order Type. When the trigger price is hit, the adjusted stop price is implemented for the new order. Used for Stop Limit and Trailing Stop Limit orders. This value will be the limit price of the order if it is triggered and submitted. Used for Trailing Stop and Trailing Stop Limit orders. This value will replace the original trailing amount if the adjusted order is triggered. each field. You buy 100 shares of XYZ for $31.00/share, and submit a sell stop order with a trigger price of $ This means that if the price hits $30.00, TWS will send a sell market order to the exchange. Now let's modify this scenario. In addition to the above Stop order, you decide to create an adjustable Stop Limit order to help lock in a profit if the stock price begins to rise. Now imagine the price starts going up. When it hits the trigger price (see next field below) TWS will cancel the Stop order and create a new Stop Limit order with the characteristics you set in the following fields. Set the adjustable trigger price to $34.00 Set the adjusted Stop Price to $ When the stock rises above the $34.00 trigger price you set above, you original Stop order is cancelled and replaced with a Stop Limit order with a stop trigger price of $ Set the Stop Limit to $33.00 to ensure your order will not execute below this price. If you had a trailing stop order with a trailing amount of $1.00, you could set the adjusted trailing amount to $.50. If the adjustment trigger is hit, the trailing amount is modified. 41

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42 Order Ticket Window - Pegged Select from the available fields to create an order. The fields are context-sensitive, which means that only valid selections will be active. For example, if you are creating any kind of order other than a Pegged to Stock options order routed through BOX, this page will be inactive. Field Description Notes Stock Ref Price Enter a stock price. If you do not enter a value, the midpoint of the NBBO at the time of the order is used. Stock Range (Lower) Stock Range (Higher) Delta Define the lower portion of the stock range outside of which your order will be cancelled. Define the higher portion of the stock range outside of which your order will be cancelled. Enter a value (which will be used as a percent, ie. 43

43 Field Description Notes ".5" equal 50%) that will be multiplied by the change in the underlying stock price. The product is added to the starting price to determine the option price. 44

44 Volatility Trading The VOL order type lets you create option orders where the limit price is calculated as a function of an option volatility that you can modify. To activate the Volatility tab, select VOL as the order type on the Basic tab. NOTE: There are three useful icons in the upper right corner. The first is called the "Refresh Target" icon. Click it to activate; the center turns red. To automatically replace the current contract information with an asset you have selected on the trading screen, click the Refresh Target icon. The Question Mark icon will open the help topic related to the current screen. The pushpin icon will keep the current screen on top. Click to depress the pushpin and pin the screen on top, click again to release. You may want to use this feature to keep the screen visible if you go to the trading screen to select a new contract. To remove tabs and view all fields on a single la, select the Comprehensive view. Field Description Notes Deltaneutral Continuously update limit When checked, this tells TWS to initiate a delta trade on the underlying security on full or partial execution of the option order. When checked, TWS automatically updates the option price as the underlying stock price 45

45 Field Description Notes price Volatility Type Stock Price for Calculations Stock Price Monitoring moves. Select from Daily or Annual volatility. Select the average of Bid or Ask, or bid when buying a call or selling a put, ask when selling a call or buying a put. This price is also used to compute the limit price sent to an exchange (whether or not Continuous Update is selected), and for watermark price monitoring Low Watermark - enter a price that is monitored against changes in the underlying stock price. If the price of the underlying crosses BELOW this price, TWS will cancel the order. Merely touching the watermark does not cancel the order. High Watermark - enter a price that is monitored against changes in the underlying stock price. If the price of the underlying crosses ABOVE this price, TWS will cancel the order. Merely touching the watermark does not cancel the order. 46

46 Order Ticket Window - Conditional A conditional order is an order that will automatically be submitted or cancelled ONLY IF specified criteria for one or more defined contracts are met. You can use stocks, options, futures or security indexes to trigger a conditional order. To create a conditional order 1. Select an order management line. 2. From the right-click menu, select Modify and then select Condition. 3. From the Conditional tab on the order ticket click Add Condition. 4. Enter contract information for the contingent asset in the Conditional Order box. 5. Enter the trigger information for the contingent asset: 1. Select the trigger method. 2. Select whether the price of the contingent asset should be less than or equal to (<=) or greater than or equal to (>=) the trigger price. 3. Enter the trigger price. NOTE: If you select the double bid/ask trigger method, the greater than or equal to operator (>=) will use the BID price and the less than or equal to operator (<=) will use the ASK price. 6. Click OK. The condition appears in the Current Conditions list. To set multiple conditions, use the Add Condition button and click AND or OR in the Current Conditions area. 47

47 Field/Button Add Condition Delete Modify Allow condition to be satisfied... Action to take... Description Invokes the Conditional Order entry box. Deletes the selected condition. Opens the Conditional Order entry box for the selected condition to allow you to make changes. Lets the selected condition activate the order if it is satisfied outside of regular trading hours. If selected conditional order is satisfied, you can elect to have the primary order submitted OR cancelled. 48

48 Order Ticket Window - Miscellaneous Use the Miscellaneous order fields to apply order attributes and set specific rules for OCA groups. NOTE that OCA group names must be unique to ensure proper handling of OCA orders. Once you use a name, you cannot use it again even after the order executes or is canceled. Field Order Ref Large Shareholder Req Market Data Block Order Sweep to Fill Non-Guaranteed Allow triggering 49 Description An identifying number you create to track your order. For large shareholders trading Canadian products. Use the dropdown selection list to appropriately mark your order. Check to request market data for the order. Check to create a block order. Check to create a sweep-to-fill order. Checking this box indicates that you will take all the risk for partially-executed Smart routed combination orders. Check to allow the selected order to trigger outside regular

49 Field outside regular trading hours All or None Hidden Preserve Time Priority Description hours. Check to create an All or None order. Check to create a hidden order. Check to keep your order in the queue and prohibit from canceling and resubmitting orders intermittently. This feature is used on exchanges that charge a handling fee for orders that remain on the order book for a specified period of time. OCA Group Partially filled instructions Overfill Protection If the order is part of a one-cancels-all order, enter the OCA name in this field. All orders with the same name in the OCA field become part of an OCA order. Once you use a name, you cannot use that name again even after the order executes or is canceled. Set instructions on how to behave when order is partially filled. The default is to have other orders in the OCA group proportionately reduced in size based on the quantity of the filled portion. Dictates that only one order in the group will be routed to an exchange at a time. This completely removes the possibility of an overfill. 50

50 Enter Orders using Rapid Order Entry The Rapid Order Entry panel, which is visible by default at the top of each trading page, allows you to quickly transmit an order without having to open an order ticket or click in a market data line. You simply tab through the fields, enter your order parameters, and press Buy or Sell. You can also enter the local or root underlying symbol, just as you can on the trading screen. NOTE: Rapid order entry can be used for EQUITY, EQUITY OPTION and COMBINATION orders for Individual traders and Advisors. To use the Rapid Order Entry panel 1. If the panel is hidden, right-click in the tabset area. Otherwise right-click in the Rapid Order Entry panel. 2. Select Rapid Order Entry. In the first section, use Show or Hide to display or remove the panel. In the second section, select the instrument type/order type you want to trade. You can use the Rapid Order Entry panel to submit only one type of order at a time. For example, if you are using the panel to submit stock orders, you must toggle to the Combos submenu selection if you want to enter spread orders or combination strategies. Select Configure to do all of the above, and set defaults, tab order and other parameters for the Rapid Order Entry panel. Once you have transmitted an order using Rapid Order Entry, the details of the order appear in the Order Management panel of the trading page. Any modifications to your order must be made on this order management line. Tab Order The tab order allows you to enter order information by tabbing through the fields without removing your fingers from the keyboard. You can add/remove fields from the tab order using the Rapid Order Entry tab on the Layout Manager. The intelligent tab-order mechanism enhances the speed with which you can enter keyboard orders by moving you through only those fields necessary to complete your order. 51

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52 Update Limit Price You can automatically update the limit price for an order (or all orders) to coincide with the ask, bid, midpoint, closing or last price. Automatically update the limit price 1. On the Order menu select Update Limit Prices. 2. Set update parameters: Update price for a single order or all current orders. Set the update parameters for Buy orders and include an offset amount if desired. Set the update parameters for Sell orders. If you check Mirror image of buy orders, parameters are set reversed from the Buy orders selections. The mirror images of Midpoint, Last and Close would be the negative values for each of these prices. 53

53 Create "Instantaneous Transmit" Hot Key You use hot keys to perform common trading functions, such as creating specific order types. Once you have created an order, you must still select Transmit to send the order. You now have the option to enhance the Buy and Sell hot keys by adding "instantaneous transmit" functionality. To add instantaneous transmit functionality to a hotkey 1. On the Configure menu, select Hot keys. 2. In the Shortcuts area select the Buy or Sell action and press Configure. 3. Click the Customize tab. 4. At the bottom of the page check Transmit the order instantaneously and click OK. NOTE: To use this feature, you will be asked to sign an agreement stating that you understand its implications. Under the terms of the Customer agreement, you are responsible for all orders entered in your account. Consider carefully whether setting a hot key to instantaneously transmit orders is the best for the way you trade. 54

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55 Open BookTrader Transmit orders at any price, including the best bid and ask, with a single click. BookTrader displays as a separate window for whichever contract you select. It shows a series of prices above and below the best bid and ask. To open and arm BookTrader 1. Select a contract on the trading page. 2. Right click and select Tools, then select BookTrader OR use the Ticker menu and select BookTrader. 3. In the upper left corner, check Armed. 4. Read the activation contract which states that you understand that a single click in the bid or ask field transmits an order directly to an exchange, and click Yes to arm BookTrader. If you leave the Armed option unchecked, you can see prices and sizes but cannot trade. The current best ask shows a Green background in the Price field; the current best bid shows a Yellow background. 56 Orders transmitted from BookTrader are displayed on the Pending page and in the Orders section of the BookTrader. NOTES By default, BookTrader uses specific colors to convey information. You can customize these colors by clicking the Configure button on the toolbar, and then selecting BookTrader Colors. The current Cumulative Bid and Ask sizes are displayed at the top of the Bid Size and Ask Size columns. To turn this feature off, use the Configure > Settings page. By default, clicking a size initiates an order. If you click another size the current unexecuted order is cancelled and replaced with the new order. But when you active Multiple Order

56 Mode from the Configure > Settings page, clicking in a size will not cancel a current order. You are able to enter multiple same-side orders that display in the Orders section of the Activity panel. You can open a blank BookTrader window by clicking the BookTrader icon on the trading toolbar. Use the Underlying field to initiate contract selection. If you are in single-order mode, the open order size for an unexecuted order or portions of an order is displayed in the Status column. 57

57 Trade with BookTrader Before you can trade with BookTrader, you must ready the application for instantaneous order transmission by checking the Armed checkbox and agreeing to the activation contract. Once armed, BookTrader instantly transmits your order with a single click of the mouse. Mouse actions are described below. To trade with BookTrader Click on any Bid size to send a Buy Limit order at the selected price. Click on any Ask size to send a Sell Limit order at the selected price. Right-click on any Bid size to send a Buy Stop order. Right-click on any Ask size to send a Sell Stop order. Hold the Alt key and click on any Bid or Ask size to create a Bracket order. Each order you create is displayed in the Orders row and on the TWS trading screen, and uses TWS order defaults. Modify an order by entering a new value in the Order row. Click the "T" in the status field to re-transmit the modified order. To cancel an order, click the "C" in the status field of the appropriate order row. You can also modify the order by clicking in the desired price field above or below the currently selected line. This initiates a new order at the selected price, and sends a cancel notice to the exchange for the previous order. By default, the stop offset amount used for Bracket orders is set to 1.0. To modify this value, on the Configure menu select Order then select Order Defaults. Change the Stp Offset value. You can hide the tabsets, quote panel, and toolbar to display only the ladder and menu, by clicking the Full Screen Mode icon in the top right corner. 58

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59 BookTrader Window Use BookTrader's buttons to customize the visual display and trading functionality. Cancel All - cancels all orders on the active BookTrader. Clear Log - clears all order information from the white log area just above the buttons. Re-center- click to keep the best bid/ask price always visible in the center of the BookTrader screen. Note the the best bid/ask price continually recenters automatically even if you don't press the Re-center button. Elect to have the ladder recenter around the midpoint of the bid/ask, or the last price. To modify settings, use the Configure button and select Settings. Configure- opens the Configuration dialog box. You can configure Hotkeys, market data, order management area and the trade area functionality. 60

60 BookTrader Colors BookTrader displays a lot of information in a small space using colors and numbers. Market Data Colors The market data colors display after BookTrader is armed but before any order is transmitted. The Bid Size column is yellow until you create an order. Values in this column represent the size of an order at the specific price, and help show market depth. The Ask Size column is green until you create an order. When a size appears in an ask size field, this indicates the current best ask. The Status field remains gray until you submit an order. Price Field - Background Colors The current best bid price is shown by a Yellow background, with the size next to it in the Bid Size field. The current best ask price is shown by a Green background, with the size next to it in the Ask Size field The Last transaction is highlighted by a Slate Blue background. The High price is highlighted by a Bright Blue background. The Low price is highlight by a Red background. The Average Cost (including commissions) is indicated by a highlight across the entire row. You'll only see this if you hold a position in the active contract. BookTrader Colors Column Name Status Bid Size Possible Color Notes Once you transmit an order, the status colors change. See Order Status Colors table below. Indicates the size of the current best bid. Indicates that a limit order has been transmitted (by clicking in the field). Price No color Indicates a stop order has been transmitted (by right-clicking in the field). One in a range of prices displayed for the contract. The current best bid price. The current best ask price. The price at which the last order executed, and the size of the order. 61

61 BookTrader Colors Column Name Possible Color Notes The current high price. The current low price. Ask Size Indicates the size of the current best ask. Indicates that a limit order has been transmitted (by clicking in the field). Indicates a stop order has been transmitted (by right-clicking in the field). The number value indicates the size of the current best ask. Multiple Order Mode - Type Field Colors When you create an order in Multiple Order Mode, the Type field displays BLUE to indicate a LIMIT order, and RED to indicate a STOP order. Order Status Colors The Order Status colors display in the Status field when you transmit an order. Color(s) What it means BLUE indicates that a simulated order type has been accepted by the system and that this order has yet to be elected. GREEN indicates that your order has been accepted and is working at the order destination. RED indicates that the balance of your order has been confirmed canceled by the system. This could occur unexpectedly when the system or the destination has rejected your order. LIGHT BLUE indicates that you have transmitted your order, but have not yet received confirmation that it has been accepted by the order destination. MAGENTA indicates that you have sent a request to cancel the order but have not yet received cancel confirmation from the order destination. At this point, your order is not confirmed canceled. You may still receive an execution while your 62

62 cancellation request is pending. MAROON indicates that an attached simulated order type has been accepted by the system and has yet to be elected. The order is held in the system (and the status remains MAROON) until the election criteria are met. At that time the order is transmitted to the order destination specified and the order status color will change appropriately. 63

63 Introduction to OptionTrader OptionTrader is a separate, robust window that you open from the right-click Tools menu on a selected stock underlying. This configurable standalone screen shows market data for the underlying, lets you set up option chains based on the underlying, gives you access to your options orders, executions and portfolio information, drives the data for the Option Model Editor and Options Analytics windows, and lets you create combination Spread orders. The Greeks risk dimension values are displayed in green for each option. Use the Option Model Editor to modify the values used to calculate option prices and these risk dimensions. View the Portfolio Analytics risk analysis tool by clicking the Portfolio Analytics icon. Open Option Trader 1. Click on a desired stock underlying on the Trading page to select the line. 2. Right click and select Tools and then select Option Trader. The OptionTrader window opens for the selected underlying. The Quote Panel shows the underlying asset. Follow steps 1-2 above to add multiple tabbed pages. Manage your working orders from the Orders tab. You can also check the activity log and view execution reports and portfolio data. NOTE: Market data displayed for options is not counted against the 40-market data line limit. 64

64 Create Option Chains Use OptionTrader to create and manage option chains. Create an option chain Click Load Chains to load data for all options for an underlying, or define the strike, expiry and exchange to limit the number of options returned. 1. Use Strike, Expiry and Exchange buttons to define the options to include in the option chain. 2. Click Load Chains to view market data. Use Clear Chains to remove data and clear the screen. 3. To create an order, click the Bid or Ask price on a market data line. You can add pages for other contracts by clicking the New Tab icon on the toolbar. After you click the New Tab button, define an underlying by entering a symbol in the Underlying field on the quote panel. Hit Enter, then select an instrument type and then a specific contract. The new underlying will be reflected in the tab name. Note that, unlike orders created on the Trading page, option chain orders are displayed above the market data screen in the Orders section of the Activity panel. 65

65 Create/Edit Toolbar Buttons Use the Buttons option on the Configure menu to add, edit and remove action buttons that are displayed directly above the Orders/Log/Executions/Portfolio tabset. To create or edit a button 1. Click Configure and then click Buttons. 2. Click New, or select a button and click Edit. New adds a button, Edit modifies the selected button. 3. Use the Button Appearance section to change the label, the text color and the background color. 4. Select an action to associate with the button using the Select Action dropdown. 5. Fine-tune the action by entering data in the Customize Action area. For example, for the action Increase price or size, you can specify the price or size field to which the button applies, and set the interval by which to increase the field value. 66

66 OptionTrader Menu The OptionTrader menu has the following selections: Option Trader Menu Commands File menu Close Closes the Option Trader window. Option Chains menu Load Chains Populates the Option Chains panel with all available put and call options if you do not set any filters, and with the appropriate options if you select a Strike, Expiry and Exchange from the dropdown windows at the top of the Option Chains panel. Reset When you use the Strike, Expiry and Exchange filters to query a specific option, the values remain in the respective fields. Use Reset to clear these values. Clear Chains Removes all option chains from the Option Chains panel Option Spreads Opens the Combination Composition box which allows you to specify the legs of a spread order. Analytics menu Portfolio Analytics Opens the portfolio risk analysis tool Option Analytics Opens the Option Analytics window populated with data from the active Option Trader page. Edit Model Opens the Option Model editor for the option you have selected from the Option Chains window. Orders menu Cancel All Cancels all working orders on the active Option Trader page. Configure menu Hotkeys Create hotkeys and shortcuts for the Option Trader. Buttons Create custom buttons to add to the Activity panel, and edit existing buttons. Quote Panel Specify columns and colors to display on the Quote Panel. Order Columns Specify columns and colors to display on the Orders tab. Execution Columns Specify columns and colors to display on the Execution tab. Option Chains Specify columns and colors to display on the Option Chains page. Option Trader Set Option Trader functionality, including: Display menu - Uncheck to hide menu bar. Display toolbar - Uncheck to hide the toolbar icons. Jump to order - If checked, your cursor is automatically moved to the order you just create Allow multiple untransmitted orders - If unchecked, each order you initiate cancels and replaces the existing untransmitted order. Display Quote Panel - Uncheck to hide the Quote Panel, which contains the underlying asset and underlying price. Help menu Show Help Displays user guide help. 67

67 BasketTrader Send a Basket Order Before you can select and transmit a basket order, you must create and save the basket file, using the TWS File >Save as Basket command, or directly from a spreadsheet. You can modify a basket order before you send it by adding or removing assets, changing the multiplier and quantities, and reversing the order sides and then converting limit orders to market, relative or VWAP orders. You can also elect to create a basket file based on a selected index using the index composition or statistical composition. Use the criteria selections to fine-tune your index basket. If you choose to base your index basket on the index composition, the system automatically keeps the basket in line with the index composition as it changes. For detailed field-level information on the Basket Order window, click a field in the image below. When you send a basket order, each order in the basket is cleared individually. If your account does not meet margin requirements, it is possible that only a portion of the basket order will execute. To send a basket order 1. On the Order menu, select Basket. 2. From the Basket Order dialog, select a Basket File using the drop-down or the Browse button. If you created a basket file using Excel, browse to the saved.csv file. When you load the basket the Excel file is read into the trading screen. 3. Modify the Multiplier if necessary. This value multiplies the quantity of each order in the basket. 4. Click Load to populate the Orders panel with the basket order. 5. Modify order parameters if necessary, and click Transmit in the Execute Basket panel to transmit the entire basket order. You can transmit individual orders within the basket using the market data lines in the Orders panel. 68

68 The fields below are available through the Orders panel. To hide or display fields, right click in any column title Customize Layout. Check fields to display, uncheck fields to hide them. Column Name Underlying Description The underlying symbol for the contract. To toggle between underlying and symbol mode, on the View menu select the desired 69

69 Column Name Symbol Exch Description mode. The exchange symbol for the contract. To toggle between underlying and symbol mode, on the View menu select the desired mode. The exchange to which orders for the contract will be routed. Select SMART order routing to route directly to the best available market. Description Trailing Key Account (Allocation) OCA Group Time in Force Exp. Date Exp. Time Action Total Quan Transmit Quan Quantity 70 Identifies the instrument type and other descriptive contract information. System-created key to identify bundled limit, bracket and trailing stop orders. Displays the account number of the beneficial account. (For FA accounts, the Allocation column lets you select an account, create a new allocation profile, allocate shares based on percent of equity in each account, or define an absolute number of shares to be allocated to specified accounts. Allows you to create a one-cancels-all advanced order group without opening the Order Ticket window. The time span over which your order remains active. For GTD time-in-force, keeps the order active until the close of market on the date you enter. Date format is YYYY/MM/DD. For GTD time-in-force, keeps the order active until the time on the date you enter. Time format is hh:mm:ss xxx where xxx is the three letter time zone acronym. If no time zone is entered, the local time zone is used. The order action. BUY, SELL or SELL SHORT. The total quantity of units in the order line. The quantity of units you want to transmit in the current order The number of units in your order. % The percent of the total order you want to transmit in the current order. Lmt Price Aux. Price Pct Offset Stop Price Type Transmit Cancel Status Dest. Swp Fill Disp Size Origin Hidden The limit price for order types to which this price applies, including Limit, Stop Limit, and Relative orders. You can elect to automatically update the limit price to reflect the current bid, ask, midpoint, last or closing price. This field reflects the Election price for Stop and Stop Limit orders, and the Offset Amount for Relative and Trailing Stop orders. You can set these auxiliary amounts in the Default Order Settings box. Creates an offset price based on a percentage off the best bid or ask. Use a decimal value between 0-1. The Election price for Stop and Stop Limit orders. The order type. Click to transmit the order. Click to cancel the transmitted order. The order status. See Guide to System Colors for details. The order destination. Check to create a sweep-to-fill order. Enter a display size to create an iceberg order. The customer type from which the order originated. Mainly used for institutional accounts. Check to create a hidden order.

70 Column Name Discretionary Volatility Description Enter a discretionary amount with a limit order to create a discretionary order. Displays volatility for the option at a specific strike price. 71

71 Create Basket File through TWS The Basket Order feature lets you save a group of orders in one file, and transmit that file as a single order. Once you have created a basket file, you can create a basket order. Create a basket file automatically using the Save Orders as Basket command, or manually using any text editor. To automatically create a basket file Note that when you create a basket file automatically, you can only include orders from the same Trading page. 1. Create Buy and/or Sell orders for all assets on a page that you want to include in the basket. Click the Ask Price on a market data line to create a Buy order. Click the Bid Price on a market data line to create a Sell order. DO NOT TRANSMIT THESE ORDERS. 2. After you create the orders, modify the order parameters Time in Force, Action, Quantity, Price, Order Type, or Destination, if needed. 3. On the File menu, select Save Orders as Basket. 4. In the dialog box, view or edit the.bsk filename and click OK. Note: The system uses the Trading page name as the default basket name. You may change the basket name, but must keep the directory structure and the.bsk filename extension in order to import the file and submit a basket order Cancel the orders you created. Use the Order menu and select Cancel Page.

72 73

73 Create Basket File Manually Create a manual basket file by entering a list of order rows, each composed of a series of comma-delimited (separated by commas) fields of data that define an order. TWS reads these fields in a specific sequence to populate the TWS fields, so it is critical that you put the data in order according to the order in which it occurs in the tables below. Because the fields in each order line are interpreted based on their order in the string, some of the fields are required even though they may include a null value. These are required as placeholders to ensure the order parameters are read correctly. For example, if you are entering an options order, you must include the expiry, strike and put-or-call fields, and each of these must include a valid value. If however you are entering a stock order, you do not need to include any of those fields in your string. To manually create a basket file 1. Use any word processor or text editor tool to open a new file. 2. For each order you want to include in the basket file, create one line of text and observe the following rules: Include one value, when required or when appropriate for the instrument type, for each field described in the table below. Separate field values by commas. If you want to leave a field blank, include a blank space followed by a comma. List field values in the order in which they're listed in the table below Table 1 - Required Basket File Fields (in order) Field Data Type Possible Values or Example Req. Field? Req. Value? action constant BUY or SELL Yes Yes quantity integer e.g. 100 Yes Yes underlying symbol string e.g. IBM Yes Yes security type constant stk, opt, war, fop, fut Yes Yes expiry date/time YYYYMM e.g (for Oct expiry) For futures and options. Yes strike number e.g or 37.0 For options. put-or-call character P or C For options. Yes Yes exchange string Any valid destination, e.g. Smart, or NYSE or PHLX or VWAP. Yes Yes 74 NOTE: To clarify any ambiguity for Smart routed contracts, include the primary exchange

74 Table 1 - Required Basket File Fields (in order) along with Smart for the destination, for example: Smart/NYSE. order type constant LMT or MKT or REL or VWAP (a VWAP order type must also have a destination value of VWAP and the price field must be left blank) or MOO or LOO or MOC or LOC limit price number e.g or 85 1/2 (fraction or decimal value) Leave blank for a VWAP aux. price number e.g..15, 1/8 (fraction or decimal value) percent offset number Any decimal value between 0 and 1, e.g..05 Yes For Limit, Relative and Stop Limit orders only. For Relative, Stop and Stop Limit orders only. Relative orders Yes Yes Yes. Value may be 0. No currency constant USD, GBP, etc. Yes Yes basket tag string Any unique string of alpha or numeric characters used to identify the basket order. This tag appears in the Order Reference field of the Execution report. Yes No time-in-force constant day, gtc, gtd, ioc, fok, opg, auc Yes Yes goodtiltime date/time YYYYMMDD hh:mm:ss [zzz] where zzz is an optional time zone. If you do not designate a time zone, TWS uses the time zone from which the order originated. goodaftertime date/time YYYYMMDD hh:mm:ss [zzz] where zzz is an optional time zone. If you do not designate a time zone, TWS uses the time zone from which the order originated. Yes Yes No No The fields below are optional in the sense that they are not required for a basic order. However, if you want to use any fields, you must also includes values in any preceeding fields. 75

75 Table 2 - Optional Basket File Fields (in order, continued from Table 1 above) Field Data Possible Values or Req. Type Example Field? group string existing group name for Advisors only method string PctChange AvailableEquity NetLiq EqualQuantity PctOfPortfolio percent percent number in range 1-100, i.e. 100 for Advisors only for Advisors only profile string existing profile name for Advisors only account string existing account name for Advisors only account string free text for noncleared customers only openclose string open, close for noncleared customers only settlingfirm string free text for noncleared customers only shortsaleslot number -1 (cust. has shares) for noncleared -2 (shares are with 3rd customers party) only shortsalelocation string MPID of third party for noncleared customers only origin character c, f for noncleared customers only auctionstrategy number -1 (match) only if exchange -2 (improvement) is BOX Required Value? No only if group is specified only if method is PctChange no no yes -3 (transparent) 76

76 Table 2 - Optional Basket File Fields (in order, continued from Table 1 above) startingprice number i.e only if exchange is BOX stockrefprice number i.e only if exchange is BOX delta percent number in range only if exchange is BOX stockrangelower number i.e only if exchange is BOX stockrangeupper number i.e only if exchange is BOX no no yes no no discretionaryamt number i.e yes no displaysize integer i.e. 100 yes no RTHOnly boolean true, false yes no blockorder boolean true, false yes no sweeptofill boolean true, false yes no hidden boolean true, false yes no allornone boolean true, false yes no minqty number integer, i.e. 100 yes no ordergroup string free text, i.e. group1 yes no 77

77 *NOTE: These orders types can only be used in baskets created from a text file. You cannot create MOO and LOO basket order entries from the trading screen. The lines below illustrate how three possible order lines in a basket file would look. A limit order to buy one IBM Oct 2003 call option for $6.70 (times the contract multiplier of 100) with a strike price of $95.00, using SmartRouting for the order destination would look like: BUY, 1, IBM, OPT, , 95.0, C, SMART, LMT, 6.7, A VWAP order to sell 100 shares of IBM stock would look like: SELL, 100, IBM, STK, VWAP, VWAP,, A limit order to buy 100 shares of Microsoft stock for $52.85/share using SmartRouting would look like: BUY, 100, MSFT, STK, SMART, LMT, 52.85, 3. Save the file in your directory (it may be in C:\jts). Give the file a meaningful name and use a.bsk file extension. To save a basket file in your word processing application a. From the File menu select Save. b. In the Save in field, use the drop-down box to select the directory (i.e. C:\jts). c. In the File name field enter filename.bsk d. In the Save as type field, choose "text only" or ".txt" or "Text Document" (depending on your application). e. Click Save. 78

78 Create a Basket File using Excel You can use Excel to create a basket file which you can easily open as a basket order in TWS. Create a basket file with Excel 1. Open a blank Excel worksheet. 2. Create the orders you want to include in your basket, one per line. Enter a parameter in each successive cell. You must use the following guidelines for creating an Excel basket file: Include one value, when required or when appropriate for the instrument type, for each field described in the table below. List field values in the order in which they appear below: Table 1 - Required Basket File Fields (in order) Field Data Type Possible Values or Example Req. Field? Req. Value? action constant BUY or SELL Yes Yes quantity integer e.g. 100 Yes Yes underlying symbol string e.g. IBM Yes Yes security type constant stk, opt, war, fop, fut Yes Yes expiry date/time YYYYMM e.g (for Oct expiry) For futures and options. Yes strike number e.g or 37.0 For options. put-or-call character P or C For options. Yes Yes exchange string Any valid destination, e.g. Smart, or NYSE or PHLX or VWAP. Yes Yes 79 NOTE: To clarify any ambiguity for Smart routed contracts, include the primary exchange along with Smart for the destination, for example: Smart/NYSE. order type constant LMT or MKT or REL, STP STPLMT TRAIL or VWAP (a VWAP order type must also have a destination value of VWAP and the price field must be left blank). For at the open orders, including MOO and LOO, you must enter MKT (for MOO) or Yes Yes

79 Table 1 - Required Basket File Fields (in order) LMT (for LOO) and use the OPG value as the time in force. limit price number e.g or 85 1/2 (fraction or decimal value) Leave blank for a VWAP aux. price number e.g..15, 1/8 (fraction or decimal value) percent offset number Any decimal value between 0 and 1, e.g..05 For Limit, Relative and Stop Limit orders only. For Relative, Stop and Stop Limit orders only. Relative orders Yes Yes. Value may be 0. No currency constant USD, GBP, etc. Yes Yes basket tag string Any unique string of alpha or numeric characters used to identify the basket order. This tag appears in the Order Reference field of the Execution report. Yes No time-in-force constant day, gtc, gtd, ioc, fok, opg, auc Yes Yes goodtiltime date/time YYYYMMDD hh:mm:ss [zzz] where zzz is an optional time zone. If you do not designate a time zone, TWS uses the time zone from which the order originated. goodaftertime date/time YYYYMMDD hh:mm:ss [zzz] where zzz is an optional time zone. If you do not designate a time zone, TWS uses the time zone from which the order originated. Yes Yes No No The fields below are optional in the sense that they are not required for a basic order. However, if you want to use any fields, you must also includes values in any preceding fields. Table 2 - Optional Basket File Fields (in order, continued from Table 1 above) Field Data Possible Values or Req. Type Example Field? group string existing group name for Advisors only Required Value? No 80

80 Table 2 - Optional Basket File Fields (in order, continued from Table 1 above) method string PctChange AvailableEquity NetLiq EqualQuantity PctOfPortfolio percent percent number in range 1-100, i.e. 100 for Advisors only for Advisors only profile string existing profile name for Advisors only account string existing account name for Advisors only account string free text for noncleared customers only openclose string open, close for noncleared customers only settlingfirm string free text for noncleared customers only shortsaleslot number -1 (cust. has shares) for noncleared -2 (shares are with 3rd customers party) only shortsalelocation string MPID of third party for noncleared customers only origin character c, f for noncleared customers only auctionstrategy number -1 (match) only if exchange -2 (improvement) is BOX -3 (transparent) startingprice number i.e only if exchange is BOX stockrefprice number i.e only if exchange is BOX only if group is specified only if method is PctChange no no yes no no 81

81 Table 2 - Optional Basket File Fields (in order, continued from Table 1 above) delta percent number in range only if exchange is BOX stockrangelower number i.e only if exchange is BOX stockrangeupper number i.e only if exchange is BOX yes no no discretionaryamt number i.e yes no displaysize integer i.e. 100 yes no RTHOnly boolean true, false yes no blockorder boolean true, false yes no sweeptofill boolean true, false yes no hidden boolean true, false yes no allornone boolean true, false yes no minqty number integer, i.e. 100 yes no ordergroup string free text, i.e. group1 yes no 3. Save the file with a.csv file extension, for example excelbasket.csv. You can save the file to any directory. You may get several messages when you save, the first saying that the selected file type does not support workbooks with multiple sheets. Click OK at this message. The second tells you your file may contain features not compatible with CSV. Click Yes at this message. For example, a 2-order basket with the first order a limit order to buy 100 shares of IBM at $91.95 using SMART as the destination, and the second a limit order to sell 1 IBM July call option for $2.00 would look like this: 82

82 To transmit this order, open the file from your Basket orders pages. 83

83 ComboTrader Create combination limit orders for options (which can include stock legs if routed through SmartRouting) and spread orders for futures. Although a combination/spread order is constructed of separate legs, it is executed as a single transaction if it is routed directly to an exchange. For combination orders that are SmartRouted, each leg may be executed separately to ensure best execution. You can create a unique combination by manually defining an order leg by leg, or create a named strategy using a template. To use stock legs in the order, you must create the combination manually. Currently TWS provides templates to construct the following named option strategies: 84 Vertical spread - An order to simultaneously purchase and sell options at different strike prices, where both have the same underlying, right (call or put) and expiration date. This spread is sometimes referred to as a price spread. Call vertical spread example: Buy 1 June call, Sell 1 June call. Put vertical spread example: Buy 1 March put, Sell 1 March02 95 put Calendar spread - An order to simultaneously purchase and sell options with different expiration dates, where both have the same underlying, right (call or put) and strike price. This spread is sometimes referred to as a time spread. A calendar spread whose options have different expiration dates and different strike prices is sometimes referred to as a diagonal spread. For example: Buy 1 June call, Sell 1 March call. Futures Calendar spread - An order to simultaneously purchase and sell futures with different expiration dates, where both have the same underlying. This spread is sometimes referred to as a time spread. For example: Buy 1 FUT Sept03, Sell 1 FUT June03. Diagonal spread - An order to simultaneously purchase and sell options with different expiration dates and different strike prices, where both have the same

84 underlying and right (call or put). For example: Buy 1 June call, Sell 1 Sept call. Straddle - An order to simultaneously purchase (or sell) a call and a put in identical numbers, where both have the same underlying, expiration date and strike price. For example: Sell 1 Dec02 90 call, Sell 1 Dec02 90 put. Strangle - An order to simultaneously purchase a call and a put with different strike prices, where both have the same underlying and expiration date. In the case where both the call and the put are out of the money, this order is referred to as an inside strangle. For example: Buy 1 June02 95 put, Buy 1 June call. Butterfly - An order to simultaneously purchase an option with one strike price, purchase an option with a second strike price, and sell two options with a third strike price that is midway between the prices of the first two options. The ratio for a butterfly is always 1 x 2 x 1. For example: Buy 10 March02 95 calls, Sell 20 March calls, Buy 10 March calls. Synthetic - An order to simultaneously purchase a call and sell a put in identical numbers (or sell a call and purchase a put in identical numbers), where both have the same underlying, expiration date and strike price. Purchase a synthetic: Buy 1 April call, Sell 1 April put. Sell a synthetic: Sell 1 April call, Buy 1 April put. Box - An order to simultaneously purchase and sell two synthetics in identical numbers at different strike prices. For example: Buy 1 April02 95 call, Sell 1 April02 95 put, Sell 1 April call, Buy 1 April put. Synthetic Put - An order to simultaneously purchase (or sell) a call option and sell (or purchase) stock where both have the same underlying. Purchase a synthetic put: Buy 1 XYZ April03 75 call, Sell 100 shares XYZ Sell a synthetic put: Sell 1 XYZ April03 75 call, Buy 100 shares XYZ. Synthetic Call - An order to simultaneously purchase (or sell) a put option and purchase (or sell) stock where both have the same underlying. Purchase a synthetic call: Buy 1 XYZ April03 75 put, Buy 100 shares XYZ Sell a synthetic put: Sell 1 XYZ April03 75 put, Sell 100 shares XYZ. Conversion - An order to simultaneously sell (or purchase) a call option and purchase (or sell) a put option in identical numbers where both have the same underlying, expiration date and strike price, and purchase stock of the same underlying. Purchase a conversion: Sell 1 XYZ April04 75 call, Buy 1 XYZ April04 75 put, Buy 100 shares XYZ Sell a conversion: Buy 1 XYZ April04 75 call, Sell 1 XYZ April04 75 put, Sell 100 shares XYZ Reversal- An order to simultaneously purchase (or sell) a call option and sell (or purchase) a put option in identical numbers where both have the same underlying, expiration date and strike price, and sell stock of the same underlying. Purchase a reversal: Buy 1 XYZ April04 75 call, Sell 1 XYZ April04 75 put, Sell 100 shares XYZ Sell a reversal: Sell 1 XYZ April04 75 call, Buy 1 XYZ April04 75 put, Buy 100 shares XYZ Risk Reversal- An order to simultaneously purchase (or sell) a put option and sell (or purchase) a call option in identical numbers where both have the same underlying and expiration date, but the call generally has a higher strike price. Purchase a risk reversal: Buy 1 XYZ April04 75 put, Sell 1 XYZ April04 95 call Sell a risk reversal: Sell 1 XYZ April04 75 put, Buy 1 XYZ April04 95 call 85

85 . Buy Write - An order to simultaneously purchase (sell) a stock and sell (purchase) a call option of the same underlying. Purchase a Buy Write: Sell 1 XYZ April06 95 call, Buy 100 shares XYZ Sell a Buy Write: Buy 1 XYZ April06 95 call, Sell 100 shares XYZ 86

86 Create a Combination Order You can create any kind of combination spread order using the Combination Composition box, including futures spreads and inter-market Smart combos. To create an Inter-market or Smart Combo order 1. Right click on a blank line and select Generic Combo, or right click on a blank line and select Order then click the Combo radio button at the top of the page, or create a market data line with the instrument type Comb. 2. In the Leg Query section, enter the underlying symbol for the first leg of the order. 3. Use the Leg Definition section to define parameters of the leg. When finished click Add Leg, or simply drag a market data line from the trading screen into the bottom of the Leg Definition area. 4. After you have added all desired legs click OK, and the spread appears as a market data line on your trading screen. The implied price is calculated based on the underlying price of each leg, and changes with variations in the price of each underlying. Based on the implied price, SmartRouting will route each leg of the order separately to get the best price. NOTE: To see individual leg prices for a combination or spread order, open the Execution reports window by clicking the Trades icon on the Trading Toolbar. Double-click the desired combination execution report line in the Execution window (or right-click on the line and select Show Legs) to open the Execution Window for Legs. To create a combination strategy Right-click on a blank line and select Generic Combo, or create a market data line with the instrument type Comb. 2. In the Leg Query section, enter the underlying symbol for the first leg of the order.

87 3. Use the Combo Template tab to select a strategy. 4. Select data for all legs of the order and click OK. The combination order strategy appears on your trading screen as a market data line. 88

88 Using the Combination Composition Window Use the Combo Template tab to select a recognized combination order and define the necessary parameters. Use the Generic Combo tab to create the combination one leg at a time. Combo Template Field Name Leg Type Strategy Multiplier Worksheet Description The order type, Option or Future, is selected based on the underlying and exchange you entered. If both choices are active, select the order type you want to create. Combination strategies are listed based on the Leg Type you selected. For descriptions of option combination strategies, see the Combination Orders topic. Use the Help button for strategy descriptions. Select the contract multiplier. Select Sell Combo or Buy Combo in the graph drop-down to see what the combination order looks like. Reset Request market data for all legs The worksheet categories display drop-down list boxes each time you need to make a selection. Move through the worksheet and select choices as needed. Click Reset to start over, either by selecting another strategy or editing the legs of the chosen strategy. Check to create a market data line for each leg of the order, to be displayed on the trading screen. 89

89 Generic Combo Field Name Leg Definition Button Name Add Leg Reset Help Delete Leg Request market data for all legs OK/Cancel Description Select values to define a specific leg of the combination order. The values displayed in the selection fields are context-sensitive. To ensure that all information is valid, the value in each field is locked in as you move to the next field. To modify criteria, click Reset. Leg Type - The instrument type. Expiry - Select the expiry for the current leg. Right - Select the right (call or put) for the current leg. Strike - Select a strike price for the current leg. Ratio - Select the relative number of contracts for the leg you are constructing. To help determine the ratio for a specific combination order, use Interactive Analytics. First, edit the Interactive Analytics option model, then view model outputs using option analytics. Action - Select Buy or Sell as the action for the current leg. Description Adds the leg you just defined to the combination order. The leg is displayed in the table below the buttons. Clears all values from the Leg Definition fields above. Displays button help. Deletes the highlighted leg from the leg table. Check to create a market data line for each leg of the order, to be displayed on the trading screen. Click OK to save the combination order. The current order is highlighted on the trading page, and named if the combination you created was a recognized strategy. 90

90 Transmit a Combination Order To create a combination order Before you transmit a combination order, you carefully review your order parameters on the order management line, or from the Order Ticket window by clicking Accept. 1. From the market data line, click the "Ask" or "Bid" price for the combination order you want to create. Click the Ask Price to create a Buy order. Click the Bid Price to create a Sell order. 2. On the Order Management line, modify order parameters, if needed. Note on pricing: If you buy a spread and you owe cash (debit spread), enter a positive limit price. If you buy a spread and you receive cash (a credit spread), you must enter a negative limit price. Conversely, if you sell a spread and receive cash, enter a positive limit price. If you sell a spread and owe cash, you must enter a negative limit price. For example, an April 20 xyz call shows a BID price of 6.60 and an ASK price of An April 30 xyz call shows a BID price of 0.15 and an ASK price of If you buy a "debit" call vertical spread with the following legs: Buy 1 OPT APR CALL (6.70) Sell 1 OPT APR CAL L (0.15) For this transaction you pay: 6.55 (a debit transaction) If you buy a "credit" call vertical spread with the following legs: Sell 1 OPT APR CALL (6.60) Buy 1 OPT APR CALL (0.20) For this transaction you receive 6.40 (a credit transaction; enter a negative limit price). 3. Transmit the order. 91

91 Notes on Combination Orders This page contains notes and tips on creating and transmitting combination orders. Use SmartRouting to execute legs separately to ensure you get the best price on all legs of your order. Exchanges that currently support native combination orders (which means they execute the legs together as one transaction) include: ISE ONE DTB (Euro) To help determine the ratio for a specific combination order, use our Price/Risk Analytics tools. First, edit the model using the Option Modeler, then view model outputs using Option Analytics. Note on pricing: If you buy a spread and you owe cash (debit spread), enter a positive limit price. If you buy a spread and you receive cash (a credit spread), you must enter a negative limit price. Conversely, if you sell a spread and receive cash, enter a positive limit price. If you sell a spread and owe cash, you must enter a negative limit price. For example, an April 20.0 xyz call shows a BID price of 6.60 and an ASK price of An April 30 xyz call shows a BID price of 0.15 and an ASK price of If you buy a "debit" call vertical spread with the following legs: Buy 1 OPT APR CALL (6.70), Sell 1 OPT APR CAL L (0.15) For this transaction you pay: 6.55 (a debit transaction) If you invert the legs and buy a "credit" call vertical spread with the following legs: Sell 1 OPT APR CALL (6.60) Buy 1 OPT APR CALL (0.20) For this transaction you receive 6.40 (a credit transaction, enter a negative price) 92 When you create a combination order using the Order Ticket window, click Accept (rather than Transmit) to verify your order parameters. Before you transmit a combination order, carefully review the order parameters from the Order Management line. Note the following: For vertical call spreads 5 index points apart (i.e call vs 1125 call) the lower stuck leg with strike price between 25 index points below the at-the-money strike and 70 above the at-the-money. For vertical call spreads 10 index points apart the lower stuck leg with strike price between 25 index points below the at-the-money strike and 65 above the at-themoney. For vertical call spreads 15 index points apart the lower stuck leg with strike price between 25 index points below the at-the-money strike and 60 above the at-themoney.

92 For vertical call spreads 20 index points apart the lower stuck leg with strike price between 25 index points below the at-the-money strike and 55 above the at-themoney. For vertical call spreads 25 index points apart the lower stuck leg with strike price between 25 index points below the at-the-money strike and 50 above the at-themoney. And: For vertical put spreads 5 index points apart (i.e call vs 1120 call) the lower stuck leg with strike price between 75 index points below the at-the-money strike and 20 above the at-the-money. For vertical put spreads 10 index points apart the lower stuck leg with strike price between 75 index points below the at-the-money strike and 15 above the at-themoney. For vertical put spreads 15 index points apart the lower stuck leg with strike price between 75 index points below the at-the-money strike and 10 above the at-themoney. For vertical put spreads 20 index points apart the lower stuck leg with strike price between 75 index points below the at-the-money strike and 5 above the at-themoney. For vertical put spreads 25 index points apart the lower stuck leg with strike price between 75 index points below the at-the-money strike, at-the-money. 93

93 Volatility Trading The VOL order type lets you create option orders where the limit price is calculated as a function of an option volatility that you can modify. To activate the Volatility tab, select VOL as the order type on the Basic tab. NOTE: There are three useful icons in the upper right corner. The first is called the "Refresh Target" icon. Click it to activate; the center turns red. To automatically replace the current contract information with an asset you have selected on the trading screen, click the Refresh Target icon. The Question Mark icon will open the help topic related to the current screen. The pushpin icon will keep the current screen on top. Click to depress the pushpin and pin the screen on top, click again to release. You may want to use this feature to keep the screen visible if you go to the trading screen to select a new contract. To remove tabs and view all fields on a single large page in TWS, select the Comprehensive view. Field Description Notes Deltaneutral Continuously update limit When checked, this tells TWS to initiate a delta trade on the underlying security on full or partial execution of the option order. When checked, TWS automatically updates the option price as the underlying stock price 94

94 Field Description Notes price Volatility Type Stock Price for Calculations Stock Price Monitoring moves. Select from Daily or Annual volatility. Select the average of Bid or Ask, or bid when buying a call or selling a put, ask when selling a call or buying a put. This price is also used to compute the limit price sent to an exchange (whether or not Continuous Update is selected), and for watermark price monitoring Low Watermark - enter a price that is monitored against changes in the underlying stock price. If the price of the underlying crosses BELOW this price, TWS will cancel the order. Merely touching the watermark does not cancel the order. High Watermark - enter a price that is monitored against changes in the underlying stock price. If the price of the underlying crosses ABOVE this price, TWS will cancel the order. Merely touching the watermark does not cancel the order. 95

95 Volatility Page Layout You can apply a volatility page layout that lets you create option orders based on volatility instead of price. To use the Volatility layout for an existing page 1. On the Page menu select Settings. 2. In the Layout drop-down, select Volatility and click OK. When you apply the Volatility layout, the Bid Price and Ask Price fields display volatility instead of price. You will also see several volatility columns including the Model price and Implied Volatility fields on the Market Data row, and the Volatility field on the Order Management row. NOTE: If you have options listed on the same trading page as stocks, when you switch to Volatility layout you will still see the normal bid/ask prices for your equity contracts. 96

96 Determine Order Quantity When you create an order, you can define the order size several different ways. You can set a general default order size that is used for all orders. You can set specific default sizes for instrument types, for example a quantity of 500 for all stock orders. You can even get more specific and set the default order size for a specific contract, for example set the quantity for all stock orders for underlying XYZ to Alternatively, you can set a default currency amount that will be used to calculate the order size. For example, set the default amount for stocks to $ The order quantity is then calculated based on the stock price, and is rounded to the nearest 100 for U.S. stocks. You can also have TWS calculate the order quantity by Deliverable value amount, a percent of your Net Liquidation value, or based on a percentage of your current position. 97

97 Calculate Order Quantity Use the Quantity Type and Quantity Value fields to calculate your order quantity based on: Currency- assumes the base currency DLV Amount - Deliverable Value % of NLV - percent of Net Liquidation Value % Change in Position - percent of the change for your position in the underlying. For example, say you have a Net Liquidation Value of 40,000. XYZ shows a current ask price of If you create a buy order for XYZ, select "% of NLV" as the Quantity Type and enter "20" in the Quantity Value field, you're telling TWS to calculate the number of shares you could buy for 20% of $40,000 or $ , based on the Ask price of $ The calculated Order Quantity value of "100" is then displayed in the Quantity field. To display the Quantity Type and Quantity Value fields 1. Right-click on any column name in the Order Management section of the trading screen, and click Customize Layout. 2. In the Order Row section of the Layout Manager, check Quantity Type and Quantity Value and click OK. 98

98 To calculate order quantity by currency 1. Create an order by clicking the bid or ask price. 2. In the Quantity Type field, select the currency type. This field assumes the base currency. 3. In the Quantity Value field, enter a currency amount. For a buy order, enter the amount you want to spend. For a sell order, enter the amount you want to make. Based on the current bid/ask, TWS rounds your value up or down. The order quantity is calculated and displayed in the Quantity field. To calculate order quantity by Deliverable Value (DLV Amount) 1. Create an order by clicking the bid or ask price. 2. In the Quantity Type field, select DLV Amount. For stocks, the deliverable value is the value of the stock converted to the base currency. For options, it is the value of the underlying stock represented in base currency (i.e. stock price * options multiplier). 3. In the Quantity Value field, enter the dollar amount of your deliverable value you want to use to calculate the order quantity. The order quantity is calculated and displayed in the Quantity field. To calculate order quantity as a % of your Net Liquidation Value (% NLV ) 1. Create an order by clicking the bid or ask price. 2. In the Quantity Type field, select % NLV 99

99 The Net Liquidation value is the first value in the upper left Balance area of the Account window. 3. In the Quantity Value field, enter a percent value that will multiplied by your NLV to calculate a dollar amount. The order quantity is calculated and displayed in the Quantity field. To calculate order quantity as a % of position change 1. Create an order by clicking the bid or ask price. 2. In the Quantity Type field, select % Change in Position. If you do not hold a position in the selected underlying, you will not see this selection. 3. In the Quantity Value field, enter a percent value that will multiplied by your position to calculate the order quantity. Note that if your position is negative, you must enter a negative percent value to calculate a positive order quantity. The order quantity is displayed in the Quantity field. 100

100 Multi-client Trade Allocation Advisors - Allocating Shares We provide several ways to distribute shares among accounts when you create an order. You can select an Account Group, which comprises a pre-defined group of accounts and an associated allocation method. The Account Group allocates shares based on a ratio calculated by the system, or by a percentage. The numbers used to calculate the ratio derive from the method you chose when you created the group, or by the percent change you set. A second way to allocate shares is through an Allocation Profile, which distributes shares to each account in a profile based on a percentage, ratio or absolute number that you define. Both of these methods require that you create a group, assign accounts to the group, and define the group's allocation method. You can also direct an order to a single account by selecting that account from the Allocation field on the order management line. 101

101 Create an Order for Multiple Clients Advisors can trade stock, options, futures, options on futures and foreign exchanges for Separately Managed Accounts (SMAs) using the Allocation column on an Order Management line. To create an order for multiple clients 1. Click the "Ask" or "Bid" price on a market data line to create an order. Click the Ask Price to create a Buy order. Click the Bid Price to create a Sell order. 2. Use the Allocation field dropdown list to select an Account Group, Account Profile, or a single account. OR 3. Right-click on the order and select Modify then select Share Allocation. 4. In the Allocation dialog box, select an Account Group in the Automatic Allocation area, an Account Profile in the Manual Allocation area, or select a single account. a. For the Account Group, modify the allocation method if necessary. If you choose the PctChange method, enter a positive or negative value in the Percentage field. All other automatic allocation methods are calculated using the order size. b. If you use an Allocation Profile, select a group name. c. To allocate all shares to one account, select a single account. 5. Click OK to complete the order. 6. To Transmit, click the red "T" in the Transmit field. 102

102 103

103 Create Account Aliases You can assign recognizable names to accounts using the Account Aliases dialog box. When you create an order, the account alias appears in the Allocation list instead of the individual account number. To create an account alias 1. On the Configure menu select Advisor then select Account Aliases. 2. Enter a recognizable name in the Alias column for the selected account. Note that when you create an order, the choices displayed in the Allocation list are grouped by Account Groups, then Allocation Profiles, and then individual accounts. However, they are not identified in any other way. When you create an account alias, you may want to include a prefix such as "IA" to identify the selection as an individual account. 104

104 Create a Share Allocation Profile You can create profiles that allocate specific percentages or shares of each order to individual accounts based on the rules you set and values you input. To create a share allocation profile 1. On the Configure menu, select Advisor, then select Allocation Profiles. 2. Click Create and enter a profile name, preferably one based on the way you plan to allocate shares between clients. Note that when you create an order, the choices displayed in the Allocation list are grouped by Account Groups, then Allocation Profiles, and then individual accounts. However, they are not identified in any other way. When you create a profile, you may want to include a prefix such as "P" in the name to identify the choice as a profile. 3. In the Allocation Profile specifies area, select a method of allocating shares between accounts: Percentages - this method will split the total number of shares in the order between listed accounts based on the percentages you indicate. For example, an order for 1000 shares using a profile with four accounts at 25% each would allocate 250 shares to each listed account in the profile. Ratios - this method calculates the allocation of shares based on the ratios you enter. For example, an order for 1000 shares using a profile with four accounts set to a ratio of 4, 2, 1, 1 would allocate 500, 250, 125 and 125 shares to the listed accounts, respectively. 105 Shares - this method allocates the absolute number of shares you enter to each account listed. If you use this method, the order size is calculated by adding together the number of shares allocated to each account in the profile.

105 4. Click in the Account field to view all accounts. Select an account and tab over to the Value field. 5. Enter the percent, ratio or number of shares to be allocated to the selected account (you may need to delete the current value). Tab to create a new account line. NOTE: If you use percentages to allocate shares, percentages allocated must equal 100. If you use ratios, The system automatically calculates these percentages. 6. Continue until you have listed all the desired accounts for the current profile, and click OK. 106

106 Create an Account Group for Share Allocation You can use an Account Group to automatically calculate ratios and allocate order shares to a pre-defined group of accounts based on a selected allocation method. When you create an order and choose a group, the order uses the default method to allocate shares amongst the accounts in the group. To create an Account Group 1. On the Configure menu, select Advisor, then select Account Groups, and click Create. 2. Enter an Account Group name. Do not use the name "All" since this is reserved by the system. Note that when you create an order, the choices displayed in the Allocation list are grouped first by Account Groups, then Allocation Profiles, and then individual accounts. However, they are not identified in any other way. When you create an account group, you may want to include a prefix such as "AG" in the name to identify the choice as an Account Group. 3. Select a default allocation method. You can change the allocation method for each order. EqualQuantity - Requires you to specify an order size. This method distributes shares equally between all accounts in the group. Example: You transmit an order for 400 shares of stock ABC. If your Account Group includes four accounts, each account receives 100 shares. If your Account Group includes six accounts, each account receives 66 shares, and then 1 share is allocated to each account until all are distributed. 107 NetLiq - Requires you to specify an order size. This method distributes shares based on the net liquidation value of each account. The system calculates ratios based on the Net Liquidation value in each account and allocates shares

107 based on these ratios. Example: You transmit an order for 700 shares of stock XYZ. The account group includes three accounts, A, B and C with Net Liquidation values of $25,000, $50,000 and $100,000 respectively. The system calculates a ratio of 1:2:4 and allocates 100 shares to Client A, 200 shares to Client B, and 400 shares to Client C. AvailableEquity - Requires you to specify an order size. This method distributes shares based on the amount of equity with loan value currently available in each account. The system calculates ratios based on the Equity with Loan value in each account and allocates shares based on these ratios. Example: You transmit an order for 700 shares of stock XYZ. The account group includes three accounts, A, B and C with available equity in the amounts of $25,000, $50,000 and $100,000 respectively. The system calculates a ratio of 1:2:4 and allocates 100 shares to Client A, 200 shares to Client B, and 400 shares to Client C. PctChange - Do not specify an order size. Since the quantity is calculated by the system, the order size is displayed in the Quantity field after the order is acknowledged. This method increases or decreases an already existing position. Positive percents will increase a position, negative percents will decrease a position. BUY ORDER Long Position Short Position Positive Percent Increases position No effect Negative Percent No effect Decreases position SELL ORDER Long Position Short Position Positive Percent No effect Increases position Negative Percent Decreases position No effect Example 1: Assume that three of the six accounts in this group hold long positions in stock XYZ. Client A has 100 shares, Client B has 400 shares, and Client C has 200 shares. You want to increase their holdings by 50%, so you enter "50" in the percentage field. The system calculates that your order size needs to be equal to 350 shares. It then allocates 50 shares to Client A, 200 shares to Client B, and 100 shares to Client C. 108 Example 2: You want to close out all long positions for three of the five accounts in a

108 group. You create a sell order and enter "-100" in the Percentage field. The system calculates 100% of each position for every account in the group that holds a position, and sells all shares to close the positions. 4. The list of accounts in the Non Group Account section includes all accounts available to you. To add an account to the group, select a Non Group account and click Add. 5. Click OK to save the group and its settings. 109

109 Edit a Share Allocation Profile After you have created share profiles, you can select one when you create an order. To edit a share allocation profile 1. From the Configure menu, select Advisor then select Allocation Profiles. 2. Select an Allocation Profile and click Edit. 3. In the Allocation Profile window, you can add or delete accounts, select a different allocation method, or modify the allocated percentage or ratio for any accounts. 4. Click OK to save the edited profile. NOTE: Percentages allocated must equal 100. If you use ratios, the system will automatically calculate share percentages based on the ratios. 110

110 Advisors - View Execution Reports for SMAs The Executions window lets you see execution reports for all SMAs (Separately Managed Accounts) or for a selected account. To view execution reports for a specific account 1. Open the Executions window by clicking the Trades icon on the toolbar, or selecting Executions from the View menu. 2. In the Account drop-down field, select the account for which you want to view execution reports. 111

111 Advisors Account Window To select an account 1. Open the Account window by clicking the Account icon on the toolbar, or use the Configure menu to select Advisors, then select Accounts. 2. In the Multiple Account Name area, use the Account drop-down to select the managed account whose information you want to view. The account with the "F" prefix is the master account and includes all activity for all user accounts. Accounts with a "U" prefix are individual user accounts. 112

112 Order Defaults and Hot Keys Default Order Settings Window A "default" order parameter is the value that automatically appears on your order management line when you create an order. The system uses default values to help save time. Instead of invoking a completely blank order management line, when you instigate an order each field is filled in with a default value. Each of these parameters can be manually changed on your trading screen before you transmit an order, but if you use certain parameters for most of your orders, you will save time by making that value your default order value. For example, if you use VWAP orders 95% of the time, you can change your Default Order Type to VWAP. Now each time you click on the Bid or Ask price to create an order, the order type and order destination are automatically set to VWAP. You use the Default Order Settings window to modify the default order values, including order type, order size, offset amounts and time in force, for specific instrument types. You can also set order defaults that will only be applied to a specific contract. To change order defaults for an instrument type 1. On the Configure menu, Global Configuration. 113

113 2. In the left pane, click Order and then Order Defaults. 3. If desired, in the center pane select a specific instrument type. If not instrument is selected, the defaults you set will apply across all asset classes. 4. In the right pane, set order defaults by choosing from selections. Default Order Type - use the Type drop-down to choose an order type. Default Order Sizes and Offsets - to edit values in the table, triple-click an entry and type your new data over the existing value. Alternatively, set the system up to automatically save a modified order size as the default order size for that instrument type. On the Order menu select Auto- Save Default Size. Other Default Order Settings Left Pane - Instrument Types Instrument Type Abbreviation Market Data Line - Equivalent Full Name STK Stock Stock IND Index Index OPT Option Option FUT Future Future FOP FutOpt Futures Option WAR Warrant Warrant SPRD FutSprd Futures Spread BAG Comb Combination order CASH Cash Cash Right Pane - Default Order Type Type Order Type Description 114 LMT Limit An order to buy or sell a contract at a specified price or better. MKT Market An order to buy or sell a contract at the bid or offer price currently available in the marketplace. STP Stop An order to buy or sell a contract which becomes a market order once the specified stop price is attained or penetrated. STP LMT Stop Limit An order to buy or sell a contract which becomes a limit order once the specified stop price is attained or penetrated. REL Relative Allows the customer to enter a more aggressive

114 Type Order Type Description price than the current market price, and have the entered price stay within a fixed interval to the market should prices deteriorate. PEG MKT Pegged Market Your order is pegged to buy on the best offer, and sell on the best bid. VWAP VWAP The Volume Weighted Average Price for a stock. VWAP is calculated by adding the dollars traded for every transaction in that stock and dividing the total shares traded. MKT CLS LMT CLS Market-onclose (MOO) Limit-on-close (LOO) An order submitted no later than 15 minutes prior to the close of the market, that will execute as a market order as close to the closing price as possible. An order submitted no later than 15 minutes prior to the close of the market, that will execute at the closing price if the closing price is equal to or better than the submitted limit price. TRAIL Trailing stop A sell (buy) order where the stop price is set at some fixed amount below (above) the market price. If the market price rises (falls), the stop loss price rises (falls) by this amount, but if the stock price falls (rises), the stop loss price doesn't change. This technique allows an investor to specify a limit on the maximum possible loss, without setting a limit on the maximum possible gain. For more detailed order type descriptions, refer to the order types page in the User's Guide. 115 Right Pane - Default Order Sizes and Offsets Field Description Notes Use closing position size if possible When checked, if you hold a position in the asset, the system will create the order equal to the quantity of your open position on the assumption that you want to close out your position. If you hold no position, the system will use the default order size. Use cumulative size for Market Depth Use Default Amount to Calculate Size If checked, when you create an order from any line in the market depth window, the order size is set to the total cumulative size available for that asset. Otherwise, the order size will be equal to the quantity in the Size field of the order line from which the order is created. If checked, the default order size will be calculated based on the dollar amount you enter in the Def Amount field on this page. The calculated order size is then displayed in the Quantity field on the trading page as the default We do not recommend creating orders from the Market Depth window. This is a different way to set the default order size. You can still modify the order size on the

115 Field Description Notes amount. trading page. Def Size Default Size - the default order size. Size Inc Size Increment - the interval by which the order size increases/decreases are displayed when using the size wand, or the amount by which the quantity will increase/decrease when using the hotkeys. Display Size The default amount that will be displayed for Iceberg orders. Stp Offset The amount off the current market price that will be used for auto stop orders to set the stop election price. This value is used to calculate the stop price and the limit price for attached bracket orders. Trailing Amt The amount off the current market price by which you want the stop price to trail. Relative Amt The amount that will be added to the best bid (for a buy order) and subtracted from the best ask (for a sell order) to create the limit price at which the relative order will be submitted. Discretionary Amt The Right Pane - Other Default Order Settings Field Description Notes Order Origin Defines the origin of your order in relation to the market. Time in Force Select from Day GTC (good 'till cancelled) OPG (at the open, valid with Limit and Market orders IOC (Immediate or cancel) AUC (Price Improvement Auction) 116 Percentage Size Limit Number of ticks This option was created as a safety net to prevent you from transmitting a limit order that has a mistyped limit price. If you attempt to transmit a limit order with a price outside of this calculated percent off the market price, you will receive a message asking you to verify that you meant to enter that offpercentage price before it will transmit the order. The market price used is the price displayed in either the bid (sell) or ask (buy) field at the time you transmit the order. This option can be left blank. Limits the value in the Quantity field. If you enter a higher value, you can override the default size limit by clicking Yes in the warning box. Like the Percentage option above, number of ticks is also a safety net to prevent you from transmitting a limit order that has a mistyped limit price. If you attempt to transmit a limit

116 Field Description Notes order with a price outside of this calculated number of ticks off the market price, you will get a message asking you to verify that you meant to enter the off-percentage price before it will transmit the order. The market price used is the price displayed in either the bid (sell) or ask (buy) field at the time you transmit the order. This option can be left blank. Regular Trading Hours only Checked by default. If unchecked, trading hours are determined by the opening/closing times of the order destination. Valid for US stocks listed on major exchanges. Not available for IOC, OPG (MOO and LOO), FOK, MOC or LOC orders. Right Pane - OCA Group Partially filled instructions - Set instructions on how to behave when order is partially filled. The default is to have other orders in the OCA group proportionately reduced in size based on the quantity of the filled portion. Overfill Protection - Dictates that only 1 order in the group will be routed to an exchange at a time. This completely removes the possibility of an overfill. 117

117 Default Offset Amount An offset amount is the amount off the current price used for the order. Using the default stop offset amount of 1.0, a bracket order with a price of $50.00 would create high side and low side orders at $51.00 and $ To modify the default offset amount 1. On the Configure menu, click Order and then click Order Defaults. 2. In the center pane, select the instrument type for which you want to modify offset amounts. 3. In the Default Order Sizes and Offsets area in the right pane, you can modify the Stop Offset, Trailing Amount, Relative Amount and Discretionary Amount. NOTE: To set a default offset for a specific contract rather than an instrument type, select an instrument type and click the Add button at the bottom of the instrument type list. Enter an underlying symbol and click OK. 118

118 119

119 Modify the Stop Trigger Method Use the Trigger Configuration box to modify the trigger method for valid order types. To modify the stop trigger method 1. Right-click on a stop, stop-limit, or trailing stop order and select Modify, then select Trigger Method. 2. Select the trigger method to use for the current transaction. Trigger Method Last Description For a sell (buy) order to be triggered: One last price value must be less than (greater than) or equal to the trigger price The exchange or other market center where the order is to be executed must also publish (and the system must also receive) an ask price equal to or higher than, and a bid price equal to or lower than, the trigger price. For OTC stocks and US options, the default trigger method is the double bid/ask method, where two consecutive ask price (bid price) values must be less than (greater than) or equal to the trigger price. Default For CASH contracts, the default trigger method is bid/ask, where the ask price (bid price) value must be less than (greater than) or equal to the trigger price. For all other contracts, the default trigger method is the Last method, described above. 120

120 NOTE: The Last method has leeway to trigger up to 0.5% above the ask price or up to 0.5% below the bid price. This 0.5% amount of leeway is subject to change at any time without notice. 121

121 Edit SmartRouting Directives You can define event-specific directives for contracts routed through SmartRouting, specifically excluding exchanges and setting a price cap by defining the acceptable distance from the NBBO. To modify SmartRouting functionality 1. On the Configure menu select Global Configuration. 2. Click Smart Routing in the left pane. 3. Use the right panel to set these parameters: Excluded Exchanges Use this area to direct SmartRouting NOT to route to a specific exchange for a specific contract. Enter the underlying and select the security type. Valid exchanges that may be excluded are available in the Exchange drop down list. Excluded Quotes Exclude exchanges with non-firm quotes - if the available quantity is over 100, the quote is considered firm. Exclude exchanges whose quotes are not automatically executable. If this option is sele will use its best efforts to determine which exchanges quotes are immediately automatically executable, and which exchanges quotes would require manual (human) handli will route only to those exchanges offering automatic execution. Please note that whil will use its best efforts, it is not always possible to determine whether a quote is automatically executable.. Define the NBBO price cap by entering the "maximum allowable distance from NBBO." Note that NBBO price capping supersedes the exclusion of non-firm quotes, i.e. your 122

122 order will be routed to a non-firm quote within the price cap over a firm quote outside the price cap. Pre-Open Re-route This allows you to route orders to major exchanges three minutes before the open. For orders submitted before the open, checking this box ensures your orders are routed prior to the open. This directive only applies to stocks listed on a major exchange. IMPORTANT NOTE: If you choose to: 1) exclude quotes from certain exchanges; 2) exclude non-firm quotes; or 3) exclude exchanges whose quotes are not automatically executable, your order may not be executed at the best posted price nationally (the NBBO ). This is because one of the exchanges that you chose to exclude might have the best posted price but that exchange will be bypassed by the SmartRouting system on your instruction. In addition, if you exclude certain exchanges from the eligible SmartRouting destinations and your order is routed to another exchange with an inferior posted price, your order may not be executed by the exchange to which it is sent because that exchange or ECN may not be willing to execute at an inferior price, or your order may not be marketable at that exchange. You should carefully evaluate all of these factors before deciding whether to exclude certain exchanges from the eligible SmartRouting destinations. 123

123 Update Limit Price You can automatically update the limit price for an order (or all orders) to coincide with the ask, bid, midpoint, closing or last price. Automatically update the limit price 1. On the Order menu select Update Limit Prices. 2. Set update parameters: Update price for a single order or all current orders. Set the update parameters for Buy orders and include an offset amount if desired. Set the update parameters for Sell orders. If you check Mirror image of buy orders, parameters are set reversed from the Buy orders selections. The mirror images of Midpoint, Last and Close would be the negative values for each of these prices. 124

124 Assign Quick-Action Hot Keys Assigning actions to specific keys and key combinations helps you rapidly create and transmit orders to the marketplace. You can assign any keystroke, or a combination of the "Ctrl" and "Shift" keys with one of the 26 keyboard letters, to map specific order creation and order transmission commands, such as buy, sell, transmit and cancel. To record hot keys 1. On the Configure menu, select Global Configuration, then select Hot Keys from the left pane. 2. In the Possible Actions area, choose an action to which you want to assign a hot key and click Create Shortcut. 3. In the Keyboard area, click Record. If you already have a hot key recorded for the selected action, it is displayed in the Current Key Shortcut field. 4. Press the actual keystroke or keystroke combination you will use to complete this action. The system records your keystroke and displays it in the Current Key Shortcut field. NOTE: If the Customize tab is visible, you can customize your hot key to be more specific. For example, after you record a Buy hot key, customize it to create a bracket or trailing stop limit order. After you record the desired hot keys and click Close, the mapped keys are displayed on the status line at the bottom of the screen. To re-record a hot key assignment, follow steps 1-4 above. To remove a hot key assignment from an action, click Clear. 125

125 Specific Hot Key Procedures and Information View a table of field definitions for buy/sell hotkeys. Create a Buy/Sell hot key for a specific order type (i.e. Buy Limit Order, Sell Stop Order) 1. On the Configure menu click Hot Keys 2. Select Buy or Sell as the Action and click Create Shortcut. 3. Click the Customize tab. 4. In the Order Type drop-down select the order type for which you want to create a hot key. 5. Populate any necessary order type-related fields. 6. Click the Shortcuts tab. 7. Click Record and press the keystroke combination that will represent the order type hot key. 8. Verify that the hot key has been properly recorded in the Shortcuts section. Instantaneous transmission When you create a buy or sell hot key for any order type, you can elect to "Transmit the order instantaneously" by checking this feature at the bottom of the Customize page. When you activate instantaneous transmission, using the hot key combination creates and transmits the order without giving you time to review and modify order parameters. Leave this feature unchecked to have the hot key combination create an order and leave it on the trading screen for you to manually transmit. Attach bracket orders 1. On the Configure menu, select Hot Keys 2. Select Buy or Sell as the Action and click Create Shortcut. 3. Click the Customize tab. 4. In the Attached Orders area, check Add Simple Bracket. 5. In the Bracket Orders area: In the Lmt Price (+/- offset) field select Bid, Ask, Last or None as the basis for the Limit Price portion of the bracket order, and enter an offset amount if desired. Select a Stop Type. Set the Stop price and offset for the stop trigger price. For Stop Limit orders, set the Stop Limit price and offset. 6. On the Shortcuts page record the hot key combination, and click OK. Create Increase (Decrease) Order Size hot key 1. On the Configure menu select Hot Keys. 2. Select Increase (Decrease) price or size and click Create Shortcut. 3. On the Customize tab select Size in the Field drop-down. 4. Set the Num Ticks value to represent the increment by which to increase (decrease) the default order size. 5. On the Shortcuts page, click Record and press the hot key combination to represent Increase (Decrease) order size. 6. Close the dialog box. Create Increase (Decrease) Limit (Aux.) Price hot key 126

126 1. On the Configure menu select Hot Keys. 2. Select Increase (Decrease) price or size and click Create Shortcut. 3. On the Customize tab select Limit Price (Aux. Price) in the Field drop-down. 4. Enter the Num Ticks increment by which you want the hot key to increase (decrease) the price value. 5. On the Shortcuts page, click Record and press the hot key combination to represent Increase (Decrease) Limit (Aux.) Price. 6. Close the dialog box. Use All Available for Buy/Sell Order Quantity 1. On the Configure menu click Hot Keys 2. Select Buy or Sell as the Action and click Create Shortcut. 3. Click the Customize tab. 4. In the Size field, select Available, then click OK. Now when you use the Buy or Sell hotkey, the order quantity will be determined by the number of available contracts as shown in the Ask Size or Bid Size field. Change order type/time in force 1. On the Configure menu select Hot Keys. 2. In the Modify/Transmit Order section, select Modify Order Type or Modify Time in Force and click Create Shortcut. 3. On the Shortcuts page, click Record and press the hot key combination. 4. Close the dialog box. Open the Alerts box to view/set alerts 1. On the Configure menu select Hot Keys. 2. In the Real-time Activity Monitoring section, select View Alerts and click the Create Shortcut button. 3. On the Shortcuts page, click Record and press the hot key combination, for example Ctrl + A. 4. Close the dialog box. 5. Click OK. When you use Ctrl + A from the TWS, the Alerts box opens displaying your current alerts. To create an alert, click the New button. Several keyboard keys cannot be used as hot keys, including: Alt, Page Up, Page Down, Print Screen, Home, Backspace, and the Windows key. We reserve the right to activate these keys or to remove hot key functionality from a key at any time without notice. Attempted use of invalid keys invokes the message "The hot key you selected is not valid. Please select another hot key combination." NOTE: The standard hot keys do not function within the Rapid Order Entry panel. When you record a hot key for one of the rapid order entry actions, you must use "Ctrl" plus a character key, or the Escape key. 127

127 Customize Hot Keys After you map a hot key, use options on the Customize tab to make your hot key action more specific. To customize a hot key 1. On the Configure menu, click Hot Keys. 2. In the Shortcuts area, choose an action to whose hot key you want to customize and click Configure. 3. Click the Customize tab and set parameters to support the customized hot key. The customized mapped keys are displayed on the status line at the bottom of the application. 128

128 Create "Instantaneous Transmit" Hot Key You use hot keys to perform common trading functions, such as creating specific order types. Once you have created an order, you must still select Transmit to send the order. You now have the option to enhance the Buy and Sell hot keys by adding "instantaneous transmit" functionality. To add instantaneous transmit functionality to a hotkey 1. On the Configure menu, select Hot keys. 2. In the Shortcuts area select the Buy or Sell action and press Configure. 3. Click the Customize tab. 4. At the bottom of the page check Transmit the order instantaneously and click OK. NOTE: To use this feature, you will be asked to sign an agreement stating that you understand its implications. Under the terms of the Customer agreement, you are responsible for all orders entered in your account. Consider carefully whether setting a hot key to instantaneously transmit orders is the best for the way you trade. 129

129 Assign Mouse Shortcuts You can record mouse-click shortcuts to specific order creation and transmission commands, such as buy, sell, transmit and cancel and many others. To assign a mouse shortcut 1. On the Configure menu, select Global Configuration, then select Hot Keys. 2. In the Possible Actions list, choose an action to which you want to assign a mouse shortcut and click Create Shortcut. 3. In the Mouse area, use the Market Data Field drop-down to choose the field you click in to activate the shortcut. 130

130 4. In the Click Event drop-down, choose the click method you will use in the selected field to initiate the shortcut Click Apply, then click Close. Example: If you choose Cancel Order in Possible Actions, Bid Size in Market Data Field, and Left Click as the Click Event, when you use your mouse to click (Left Click) in the Bid Size

131 column, you will cancel the order. Note that you must have the appropriate field displayed to use this mouse shortcut! To hide and display fields, use the Layout Manager. NOTE: Mouse shortcuts will override default mouse actions. To return to default mouse action, you must re-set the action as a shortcut in the Hot Keys and Mouse Shortcuts box. 132

132 ChartTrader You can trade directly from a real-time chart using ChartTrader, which you display from the Charts menu. Once you create an order, you can transmit it, cancel it or modify it directly on the chart, or using the order management line on the Orders tab. To open ChartTrader 1. Open an interactive chart by selecting a contract on the trading screen and clicking the Charts icon on the trading toolbar. 2. On the Charts menu, select ChartTrader and then select Show/Hide ChartTrader. 3. The ChartTrader tool displays directly below the Quote line of the chart. To use ChartTrader to create an order 1. Click the blue Buy button to create a buy order, or the Red sell button to create a sell order. 2. Move your cursor into the chart and position the broken blue line at the order price you want. Note that your exact price position is displayed in blue to the left of the broken line, along the price axis. 3. Click to create an order. The order management line appears below the Quote line, in the Orders section of the ChartTrader, and the broken line becomes a solid line. The order parameter defaults are the same as those you set for your trading window using the Order Defaults window. 133

133 4. Click the "T" in the Transmit field to submit the order. You can also submit an order directly from the chart. Transmit an order from the chart 1. To transmit directly from the chart, click the green Transmit button, and position the cursor over the order you want to send. You can tell that an order is properly selected as the solid order line becomes broken. 2. Click on the order to transmit. NOTE: You can modify order parameters in the Order Management line before you transmit the order from the chart. Modify order price from the chart 1. You can modify the order price directly from the chart by clicking the Modify button, and positioning the modify cursor over the selected order until the solid order line becomes broken. 2. Click the order and drag it up or down to the desired price. Orders that you create using ChartTrader also display on the Trading page that displays the contract data. Trading pages that hold an order display the page title in red. 134

134 DepthTrader The Market Depth window displays the alternative bids and offers away from the inside quote to allow you to better gauge market liquidity. You can create and transmit orders from the Underlying panel by clicking the bid or ask price, just as you do from the main trading window. Also send orders by clicking the bid or ask price in the Bid and Ask columns. For Nasdaq stocks you can elect to display the Level II window, and NYSE listed equities with market data allow access to the NYSE Open Book. We cannot guarantee that every price quoted for a particular security/commodity will be displayed in the Market Depth window. Cumulative size represents the total contract size available at a particular price or better. For example, using the image above, the cumulative contract size available on the bid at a price of would be 11 contracts (1 contract at 13.89, 10 contracts at 13.88). If you have the default order size set to 100, the order will be for the cum size times the default order size, in this case Average Price is the average execution price received when transacting the cumulative contract size. You receive multiple executions as your order goes through the order book. Executions will appear in the Execution window that you access using the Executions tab. NOTE: Exercise particular caution when trading from the Market Depth screen since the order size may be larger than you intended. We recommend you use the Market Depth information only as a trading tool to help gauge market liquidity. 135 For the Smart Market Depth window, we aggregate and display the best bids and offers available from all markets for the particular product.

135 NOTE: You can display a maximum of three (3) Market Depth, Level II or NYSE Open Book windows simultaneously. 136

136 Monitor the Market Depth The Market Depth window displays the alternative bids and offers away from the inside quote, to allow you to better gauge market liquidity. Market Depth is not available for all products or exchanges. You may open up to three Market Depth windows simultaneously. You can also view market depth for NYSE-listed products through the NYSE Open Book*. To view market depth or Open Book for an asset Right-click on a market data line and select Show Market Depth or Show NYSE Open Book. Note: To view Level II quotes, you must subscribe to Level II market data services. Click Subscribe to Market Data on the Ticker menu. *display edited by 137

137 Create an Order from the Market Depth Window Although you can trade from the Market Depth window, we recommend that you use the market depth as an evaluative tool only. When you initiate an order from the Market Depth window, your order management line is created in the main Trading window, and uses the average price shown in the Market Depth window. Modify and transmit the order just as you would any other. To create and transmit an order from the Market Depth window 1. Click on the "Ask" or "Bid" price of an asset to create an Order Management line in the main Trading window, directly below the selected asset. Click on the Ask Price to create a Buy order. Click on the Bid Price to create a Sell order. 2. In the Order Management line, modify the order parameters Time in Force, Action, Quantity, Price, Order Type, or Destination, if needed. NOTE: When you create an order from the Market Depth window, the order size is derived from the cumulative size column; it is not the default quantity size that is used when you create an order from the main Trading window. IT IS IMPORTANT THAT YOU REVIEW THE ORDER PRICE AND SIZE ON THE TRADING SCREEN BEFORE YOU TRANSMIT YOUR ORDER. 3. To transmit your order, click the red "T" in the Transmit field. 138

138 View Level II Quotes If you subscribe to the Level II market data service, you can view Level II quotes for selected Nasdaq securities. You may open up to three Level II quote windows simultaneously. To view Level II quotes for a Nasdaq security Right-click on a market data line and select Show Level II Quotes WARNING: If you click in the Bid or Ask areas of the Level II Quotes window, you are creating an order on the main Trading window with a size and price derived from this data. Note: To subscribe to a market data service, on the Ticker menu click Subscribe to Market Data. 139

139 Rebalance Your Portfolio Use the Rebalance window to redistribute percentages of positions in your portfolio that make up your current (signed) net liquidation value. TWS automatically opens and closes positions to rebalance your portfolio based on the new percentages you enter. You can add contracts and create orders just as you would from the main trading screen. Rebalance your portfolio 1. On the View menu, select Rebalance. 2. The Rebalance window shows three columns that are different from those on your trading screen: Deliv Value - this is the deliverable value of the position, which is the same as the Market Value for the position shown in the Portfolio section of the Account window. Current % - this is the current signed percent of the position to your net liquidation value shown in the Balance section of the Account window. This figure is calculated by dividing the DLV by the NLV (Net Liq. Value). Rebal % - use this field to enter a new percentage of the NLV that you want the position to have. 3. In the Rebal % field, enter the percent of the Net Liquidation Value that you want the position to have. 4. Click the Create Orders button to instruct TWS to automatically create the orders to achieve the percent change. 5. Use the Transmit All button to send all orders, or click "T" on an order line to transmit a single order. NOTE: For options, the rebalance % is based on the value of the underlying stock prices. Open positions from the Rebalance window First, add a ticker line to the Rebalance window by selecting the market data line on your trading screen, and then clicking the selection arrow attached to the Rebalance icon on the trading toolbar.

140 Click Add to Rebalance Window. Or, enter an underlying symbol into a blank row on the Rebalance screen as you would on the main trading window. 2. Enter a value in the Rebal % column and click the Create Orders button. 3. Transmit the order. 141

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142 Basic Order Types Create a Limit Order A limit order is an order to buy or sell a contract at a specified price or better. Using a Limit order ensures that the order will only execute at the price you specified or better, however, it does not guarantee that your order will execute. To create a Limit order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select LMT as the order type. 3. In the Lmt Price field, enter the price at which you want the order to execute. 4. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of limit orders and the products and exchanges on which they're supported, visit the Order Types information page.

143 Create a Limit if Touched Order A limit if touched order is an order designed to buy (or sell) a contract below (or above) the market, at the limit price or better. To create a Limit if Touched order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select LIT as the order type. 3. In the Lmt Price field, enter the price at which you want the order to execute. 4. In the Aux. Price field, enter the "touched" price to trigger the order. 5. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of Limit if Touched orders and the products and exchanges on which they're supported, visit the Order Types information page. 144

144 Create a Market Order A market order is an order to buy or sell an asset at the bid or offer price currently available in the marketplace. When you submit a market order, you have no guarantee that the order will execute at any specific price. To create a Market order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select MKT as the order type. 3. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of market orders and the products and exchanges on which they're supported, visit the Order Types information page. 145

145 Create a Market if Touched Order A Market if Touched order is an order designed to buy (or sell) a contract below (or above) the market. To create a Market if Touched order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select MIT as the order type. 3. In the Aux. Price field, enter the "touched" price to trigger the order. 4. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of Market if Touched orders and the products and exchanges on which they're supported, visit the Order Types information page. 146

146 Create a Limit-On-Close Order A LOC (limit-on-close) order must be submitted no later than 15 minutes prior to the close of the market. It will execute at the closing price if the closing price is at or better than the submitted limit price, according to the rules of the specific exchange. Otherwise the order will be cancelled. To create a LOC order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field, select LOC as the order type. NOTE: An LOC order must be routed direct to the exchange (Amex, NYSE or SuperSOES). Select an exchange from the Dest. field on the order line. 3. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of LOC orders, visit the Order Types information page. 147

147 Create a Market-On-Close Order A MOC (market-on-close) order will execute as a market order as close to the closing price as possible. To create a MOC order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field, select MOC as the order type. 3. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of MOC orders and the products and exchanges on which they're available, visit the Order Types information page. 148

148 Market with Protection Order A Market with Protection order is sent in as a market order to execute at the current best price. If the entire order does not immediately execute at the market price, the remainder of the order is re-submitted as a limit order with the limit price set by Globex to a price slightly higher/lower than the current best price. To create a market with protection order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select MKT PRT as the order type. 3. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of market with protection orders and the products and exchanges on which they're supported, visit the Order Types information page. 149

149 Create a Market-to-Limit Order A market-to-limit order is sent in as a market order to execute at the current best price. If the entire order does not immediately execute at the market price, the remainder of the order is re-submitted as a limit order with the limit price set to the price at which the market order portion of the order executed. To create a market-to-limit order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select MTL as the order type. 3. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of market-to-limit orders, visit the Order Types information page. 150

150 Pegged to Stock Orders Sometimes referred to as Relative to Stock, a pegged to stock order specifies that the option price will adjust automatically relative to the stock price, using a calculated value based on data you enter. Note that choosing a Pegged to Stock order on BOX indicates that you want to participate in BOX's Price Improvement auction. You can enter this order type using the Trading screen or the Order Ticket. To create a Pegged to Stock order from the Trading Screen 1. Create an option order and select PEG STK in the Type field. 2. On the Page menu select Layout. At the bottom of the Columns - Order Row section, check Stock Ref. Price, Stock Range (Low), Stock Range (High) and Delta. You may need these fields to complete your order. 4. If desired, enter a price in the Stock Ref. Price field. If you do not enter a value, the midpoint of the NBBO at the time of the order is used. 5. If desired, enter a stock range. If the stock price moves outside of the range, your order will be cancelled. Use the Stock Range (High) and Stock Range (Low) fields. 6. If desired, enter a starting price in the Aux. Price field. If you don't enter a value, the current stock price is used as the starting price. 7. In the Delta field, enter a value which will be used as a percent, ie. ".5" equal 50%. This percent value is multiplied by the change in the underlying stock price. The product is added to the starting price to determine the option price. When you created a pegged to stock order using the Order Ticket, use the Basic tab to select the order type and set the Starting price. Use the Pegged tab to set the Stock Ref. price, the high and low stock ranges and the delta value. If you're using BOX, select an Auction Strategy. 151

151 For a more detailed description of pegged-to-stock orders and the products and exchanges on which they're supported, visit the Order Types information page. 152

152 Pegged-to-Market Order You can submit an order that is pegged to buy on the best offer and sell on the best bid. To create a Pegged-to-Market order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Dest. field ensure that the destination is Brut. 3. In the Type drop-down select PEG MKT. 4. If desired, modify the offset amount in the Aux. Price field. 5. To transmit, click the red "T" in the Transmit field. For a more detailed description of pegged-to-market orders and the products and exchanges on which they're available, visit the Order Types information page. 153

153 Pegged-to-Primary Order A Pegged-to-Primary order is an advanced order type whose price is dynamically derived from a combination of the market quote and a user-defined offset amount. To enter a Pegged-to-Primary order 1. Click in the Ask Price field to initiate a BUY order, or the Bid Price field to initiate a SELL order. 2. Click in the Type field and select PEG PRIM as the order type. 3. Enter the offset amount in the Aux. Price field, or set a percent using the Pct. Offset field. If both fields have values TWS will use the higher of the two as the offset. To display the Pct. Offset field: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Pct. Offset and click OK. For a more detailed description of Pegged-to-Primary orders and the products and exchanges on which they're available, visit the Order Types information page. 154

154 Create a Box Top Order A BOX TOP order is sent in as a market order to execute at the current best price. If the entire order does not immediately execute at the market price, the remainder of the order is resubmitted as a limit order with the limit price set to the price at which the market order portion of the order executed. To create a BOX TOP order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select BOX TOP as the order type. 3. To transmit the order, click the red "T" in the Transmit field. Available for options routed to BOX. For a more detailed description of Boxtop orders, visit the Order Types information page. 155

155 Price Improvement Auction For options routed through BOX, you may elect to participate in the Price Improvement Auction to better your price. You can submit nine different types of Price Improvement Auction orders by combining one of three order types (Limit, Relative, Pegged to Stock) with one of three Auction Strategies (Match, Improve, Transparent) described below. To submit a Price Improvement Auction order 1. Create an options order routed to BOX. 2. In the Type field, select either LMT, REL, or PEG STK. For Limit orders, enter the limit price in the Lmt. Price field in penny increments. For Relative orders, set a relative offset amount (in penny increments) in the Aux. Price field. For PEG STK orders, you enter the starting price in the Aux. Price field, auction strategy in the Auc. Strat. field, the delta in the Delta field, the optional stock reference price in the Stock Ref. Price field, the low side of the optional stock range in the Stock Range (Low) field, the high side of the optional stock range in the Stock Range (High) field. 3. In the Auc. Strat. field, select from one of three strategies: Match - matches the current auction price, but will not exceed the calculated price improvement amount. Improve - enters a bid higher (for SELL order) or lower (for BUY order) than the current auction price, but will not exceed the calculated price improvement amount. Transparent - enters a price that includes the full calculated price improvement amount. 4. Transmit the order. 156

156 For a more detailed description of pegged to stock orders and the products and exchanges on which they're supported, visit the Order Types information page. 157

157 Create a Relative Order A Relative order is an advanced order type whose price is dynamically derived from a combination of the market quote and a user-defined offset amount. The order is submitted as a limit order and modified according to the pricing logic until it is executed or you cancel the order. You can also set an optional price cap, which keeps your order from executing at a price inferior to the cap. Use the Lmt Price and Aux. Price fields to enter orders requiring multiple prices or values. To enter a Relative order 1. Click in the Ask Price field to initiate a BUY order, or the Bid Price field to initiate a SELL order. 2. Click in the Type field and select REL as the order type. NOTE: A BUY relative order is pegged to the bid, although the displayed Limit price reflects the ASK price. A SELL relative order is pegged to the ask, although the displayed Limit price reflects the BID. 3. Enter the offset amount in the Aux. Price field, or set a percent using the Pct. Offset field. If both fields have values the higher of the two will be used as the offset. To display the Pct. Offset field: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Pct. Offset and click OK. You can modify the offset amount for several relative orders on the same trading page at one time. To do this, select multiple relative orders by holding the Ctrl key and clicking on each order. After you have selected all relative orders, right-click on one of the selected orders and select Modify. In the Relative Order Modification box, define an offset or percent offset amount and click OK. All selected orders will be changed. For a more detailed description of relative orders and the products and exchanges on which they're supported, visit the Order Types information page. 158

158 Create a VWAP Order VWAP (Volume-Weighted Average Price) orders are supported for large cap securities only. To create a VWAP order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select VWAP as the order type. 3. To transmit the order, click the red "T" in the Transmit field. NOTE: A transmitted VWAP order is accepted immediately and CANNOT BE CANCELLED. VWAP orders are automatically routed. For a more detailed description of VWAP orders and the products and exchanges on which they're supported, visit the Order Types information page. 159

159 Create a Stop Order A Stop order becomes a market order to buy or sell securities or commodities once the specified stop price is attained or penetrated. A Stop order is not guaranteed a specific execution price. To create a Stop order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field select STP as the order type. 3. Enter the Stop Election price in the Aux. Price field. 4. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of stop orders and the products and exchanges on which they're supported, visit the Order Types information page. 160

160 Create a Stop Limit Order A Stop Limit order is similar to a stop order in that a stop price will activate the order. However, the stop order becomes a market order when elected, but the stop limit order becomes a limit order. Use the Lmt Price and Aux. Price fields on the trading screen to enter orders requiring multiple prices or values. To enter a Stop Limit order 1. Click in the Ask Price field to initiate a BUY order, or the Bid Price field to initiate a SELL order. 2. Click in the Type field and select STP LMT as the order type. 3. Enter the Limit price in the Lmt Price field. 4. Enter the Stop Election price in the Aux. Price field. NOTE: You can enable the system to automatically adjust the limit price if you change the stop price. To activate this feature, on The Configure menu select Order, then select Auto-Adjust Stop-Lmt Price. The limit price will move based on the offset you defined when you set the original limit and stop election prices. For a more detailed description of stop limit orders and the products and exchanges on which they're supported, visit the Order Types information page. 161

161 Create a Trailing Stop Order A trailing stop sell order sets the initial stop price at a fixed amount below the market price. As the market price rises, the stop price rises by the trailing amount, but if the stock price falls, the stop price remains the same. When the stop price is hit, TWS submits a market order. Reverse this for a buy trailing stop order. This strategy may allow an investor to limit the maximum possible loss without limiting possible gain. NOTE: We do not recommend using trailing stop orders, as there is no guarantee that your order will be filled at or near the designated stop price, which is especially dangerous in rapidly rising or falling markets. In addition, trailing stop orders will accentuate volatility in rough markets. To enter a trailing stop order 1. Click in the Ask Price to initiate a BUY order, or the Bid Price to initiate a SELL order. 2. Click in the Type field and select TRAIL. 3. Enter values in the following fields: a. Aux Price (Trailing Amt) field. Use the dropdown to choose Amt or %. The trailing percent is calculated off the current best bid/ask. Note that you can b. Limit Price - this value defaults to the current best bid/ask. The limit price will move with the trailing stop price based on the delta between the two prices (initial stop price - initial limit price = limit delta). If the limit price and stop price are equivalent, they will move together with a zero delta. c. Stop Price - This field is optional. By default, TWS calculates the initial stop price using: market price - trailing amount. You can modify the stop price, but if it is lower than the TWS-calculated value, it will be discarded when the order is submitted. Note that the value you enter may display in the Stop Price field even if it is not used by TWS. 4. To transmit the order, click the red "T" in the Transmit field or the Transmit icon on the trading toolbar. For a more detailed description of Trailing Stop orders and the products and exchanges on which they're supported, visit the Order Types information page. 162

162 Create a Create a Trailing Stop Limit Order A trailing stop limit order lets you create a trailing stop order with a dynamically-updating limit price. When the stop order triggers, a limit order is submitted, instead of a market order. To use this order type from the Trading window, you may want to enable to Stop Price field. To do this, right-click in the column headings and select Customize Layout. In the Order Row list, scroll down and check Stop Price. To enter a trailing stop limit order 1. Click in the Ask Price to initiate a BUY order, or the Bid Price to initiate a SELL order. 2. Click in the Type field and select TRAIL LIMIT. 3. Enter values in the following fields: a. Aux Price (Trailing Amt) field. Use the dropdown to choose Amt or %. The trailing percent is calculated off the current best bid/ask. Note that you can b. Limit Price - this value defaults to the current best bid/ask. The limit price will move with the trailing stop price based on the delta between the two prices (initial stop price - initial limit price = limit delta). If the limit price and stop price are equivalent, they will move together with a zero delta. c. Stop Price - This field is optional. By default, TWS calculates the initial stop price using: market price - trailing amount. You can modify the stop price, but if it is lower than the TWS-calculated value, it will be discarded when the order is submitted. Note that the value you enter may display in the Stop Price field even if it is not used by TWS. 5. To transmit the order, click the red "T" in the Transmit field or the Transmit icon on the trading toolbar. For a more detailed description and example of Trailing Stop limit orders, and the products and exchanges on which they're supported, visit the Order Types information page. 163

163 Times in Force Create a "Good After Time" Order A "good after time" order is held in the system and sent to the exchange on the date and time you enter. To create a "good after time" order 1. Display the Good After Time field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Good After Time and click OK. 2. On the TWS screen, create an order (click in the Ask Price to create a BUY order, or the Bid Price to create a Sell order). 3. In the Good After Time field, enter the date and time after which you want TWS to submit your order. Use the format YYYYMMDD hh:mm:ss (where :ss is optional). Use military time to set the hour, minute and seconds If necessary, enter a time zone using an accepted three-letter acronym. Note that if you do not enter a specific time zone, the time zone to which your computer is set is the one used. 5. Transmit the order. The order is held in the system until the time and date you set.

164 For a more detailed description of GAT orders and the products and exchanges supported, visit the Order Types information page. 165

165 Create a Fill or Kill Order Mark an order as "fill or kill" to specify that the order must execute entirely as soon as it becomes available, or be canceled. To tag an order as having fill-or-kill time in force, select FOK from the Time in Force field. To create a FOK order 1. Create an options order (click the Ask Price to create a BUY order, or the Bid Price to create a Sell order) routed to ISE or Smart. 2. In the Time in Force field, select FOK. 3. Transmit the order. For a more detailed description of Fill or Kill orders and the products and exchanges supported, visit the Order Types information page. 166

166 Auction Order An auction order is submitted at the Calculated Opening Price (COP). If the order doesn't execute, it is resubmitted as a limit order at the COP or best bid/ask. To create an auction order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. This action will open the Order Ticket window. 2. In the Order Type field, select MTL (Market-to-Limit). 3. In the Time in Force field, select AUC (auction). 4. Modify any other order parameters. 5. To transmit the order, click Transmit. To put the order on your trading page without transmitting, click Accept. To cancel the order, click Abort. For a more detailed description of auction and other order types, visit the Order Types information page. 167

167 Create a Market-on-Open Order MOO (market-on-open) is a market order executed at the market's open at the market price. To create a MOO order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field, select MKT as the order type. 3. In the TIF field, select OPG as the time in force. 4. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of MOO orders and the products and exchanges on which they're available, visit the Order Types information page. 168

168 Create a Limit-On-Open Order A LOO (limit-on-open) order is a limit order executed at the market's open if the opening price is equal to or better than the limit price. To create a LOO order 1. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 2. In the Type field, select LMT as the order type. 3. In the TIF field, select OPG as the time in force. 4. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of LOO orders and the products and exchanges on which they're supported, visit the Order Types information page. 169

169 Time in Force for Orders The time in force for an order defines the length of time over which an order will continue working before it is canceled. We support the following time in force options: DAY - A Day order is canceled if it does not execute by the close of the trading day. Unless otherwise specified, every order is a Day order. GTC - A Good-Til-Canceled order will continue to work within the system and in the marketplace until it executes or is canceled by the customer. Customers who trade U.S. equities may use GTC for Limit, Stop, and Stop-Limit orders. Note that GTC orders will also automatically be cancelled under the following conditions: if any type of corporate action is taken on a security if you do not log in to your account for 90 days OPG - Use OPG to send a market-on-open (MOO) or limit-on-open (LOO) order. GTD - A Good-Til-Date order will remain working within the system and in the marketplace until it executes or until the close of the market on the date specified. When you select GTD as the time in force, both an Exp. Date and Exp. Time field is displayed on the order management line. Enter the date up until which you want the order to continue to work in the format YYYYMMDD. To set a time, enter the time in the format HH:MM(:SS). If desired, enter a time zone using an accepted three-letter acronym. Note that if you do not enter a specific time zone, the time zone to which your computer is set will be used. IOC - Any portion of an Immediate-or-Cancel order that is not filled as soon as it becomes available in the market is canceled. IOC is valid for market or limit orders. FOK - If the entire Fill-or-Kill order does not execute as soon as it becomes available, the entire order is canceled. NOTE: For market centers that do not accept "native" GTC orders, the order type is simulated by resubmitting the relevant order each business day upon opening of the market center. For a list of market centers that both do and do not accept GTC orders, see the Order Types page. 170

170 Order Attributes Create a Hidden Order A Hidden order (generally a large volume order) shows no evidence of its existence in either the market data or the deep book. To create a Hidden order 1. Display the Hidden field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Hidden and click OK. 2. On the TWS screen, create an order (click in the Ask Price to create a BUY order, or the Bid Price to create a Sell order). 3. In the Destination field of the Order Mgmt. row, choose INet as your order destination. 4. Check the Hidden field. 5. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of hidden orders and the products and exchanges supported, visit the Order Types information page. 171

171 Create a Discretionary Order A Discretionary Order is a limit order for which you define a discretionary amount (which is added to or subtracted from the limit price) that increases the price range over which the order is eligible to execute. The original limit price is displayed to the market. To create a Discretionary order 1. Display the Discretionary field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Discr Amt and click OK. 2. Click the Ask price to create a BUY order, or the Bid price to create a SELL order. 3. In the Type field, select LMT as the order type. 4. Set a discretionary amount in the Discr Amt field of the order management line. 5. To transmit the order, click the red "T" in the Transmit field. For a more detailed description of discretionary orders and the products and exchanges supported, visit the Order Types information page. 172

172 Create an Iceberg Order An Iceberg order allows you to submit an order (generally a large volume order) while publicly disclosing only a portion of the submitted order. To create an Iceberg order 1. Show the Disp. Size field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Disp. Size and click OK. 2. On the TWS screen, create an order (click the Ask Price to create a BUY order, or the Bid Price to create a Sell order). 3. In the Disp. Size field, enter the number of shares you want publicly disclosed. For a more detailed description of iceberg orders and the products and exchanges on which they're supported, visit the Order Types information page. 173

173 Create an All or None Order Mark an order as "all or none" to specify that the order must execute entirely. Use the Order Ticket, or display the optional AON checkbox using Page Layout to send the order directly from the trading screen. To create an AON order from the trading screen 1. Display the AON field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check AON and click OK. 2. On the TWS screen, create an order (click the Ask Price to create a BUY order, or the Bid Price to create a Sell order). 3. Check the AON checkbox to tag the order as All or None. Or, use the Order Ticket to create an order, and check the All or none checkbox in the Miscellaneous section. For a more detailed description of All or None orders and the products and exchanges supported, visit the Order Types information page. 174

174 Minimum Quantity Orders Use the Minimum Quantity order attribute to ensure at least a minimum specified number of units is filled for your order. To create a Minimum Quantity order 1. Show the Min. Quantity field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Min. Quantity and click OK. 2. On the trading screen, create an order (click the Ask Price to create a BUY order, or the Bid Price to create a Sell order). 3. In the Min. Quantity field enter the minimum number of contracts that must be available for any part of the order to execute. Available for options orders routed to Smart. 175

175 Create Block Orders A block order is a high volume order that consists of a minimum of 50 contracts at a specific limit price. To submit a block order 1. Select the option for which you want to submit a block order. 2. On the Order menu select Ticket. 3. In the Exchange field, select ISE. 4. In the Price field enter a limit price. 5. Go to the Misc tab. 6. Check Block Order. 7. Choose Transmit to send, or Accept to display the order on the trading screen before you transmit. For a more detailed description of block orders and the products and exchanges on which they're supported, visit the Order Types information page. 176

176 Create a Sweep-to-Fill Order A sweep-to-fill order identifies the best price and the exact quantity offered/available at the price, and transmits the corresponding portion of your order for immediate execution. Simultaneously it is identifying the next best price and quantity offered/available, and submits the matching quantity of your order for immediate execution. To create a sweep-to-fill order 1. Display the Swp Fill field for an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check Swp Fill and click OK. 2. On the trading screen, click the Ask Price to create a BUY order, or the Bid Price to create a Sell order. 3. Check the Swp Fill field. 4. To transmit the order, click the red "T" in the transmit field. For a more detailed description of sweep-to-fill orders and the products and exchanges on which they're supported, visit the Order Types information page. 177

177 Create a One-Cancels-All (OCA) Order A One-Cancels-All (OCA) order is a combination of separate orders that are worked in conjunction with one another in the marketplace. A customer enters orders as part of an OCA group, and when an order is executed, the remaining orders in the group are canceled. If an order is partially executed, the remaining orders in the group are reduced proportionately to the amount that was executed. If an order is canceled before execution, the remaining orders in the group are canceled. To create an OCA order 1. Display the OCA group field on an order management line: a. On the Page menu, click Layout. b. In the Columns - Order Row section on the right side of the page, check OCA Group and click OK. 2. On the TWS screen, create an order (click in the Ask Price to create a BUY order, or the Bid Price to create a Sell order). 3. Identify the order as part of an OCA group by entering a group name in the OCA Group field (you can use any descriptive name that you want). 4. Continue to create orders, and identify each as part of the group by entering the same name in the OCA Group field for each order you create. 5. After you have created all orders for a group, transmit the OCA order by clicking Transmit Page on the Order menu. NOTE: Because the OCA procedure is an automated process, cannot guarantee that requested cancellations and modifications will reach the specific exchange before an order has been executed. For a more detailed description of OCA orders and the products and exchanges on which they're available, visit the Order Types information page. 178

178 Advanced Order Types Adjustable Orders Use the Adjust tab to change an order type or define a one-time adjustment to stop, stop limit, trailing stop and trailing stop limit orders. This tab will only become active and usable if your order type is one of the stop order types just mentioned. You can also define adjustable orders on the trading screen by customizing the layout (right-click in the column heading and select Customize Layout) and activating the following columns in the Order Row section: Adj Order Type, Trigger Price, Adj Stop Price, Adj Stop Lmt Price, and Adj Trailing Amt. NOTE: There are three useful icons in the upper right corner of the page: The first is called the "Refresh Target" icon. Click it to activate; the center turns red. To automatically replace the current contract information with an asset you have selected on the trading screen, click the Refresh Target icon. The Question Mark icon will open the help topic related to the current screen. The pushpin icon will keep the current screen on top. Click to depress the pushpin and pin the screen on top, click again to release. You may want to use this feature to keep the screen visible if you go to the trading screen to select a new contract. To remove tabs and view all fields on a single large page in TWS, select the Comprehensive view. 179

179 Field Description Notes Adjusted Order Type Trigger Price Adjusted Stop Price Adjusted Stop Limit Price Adjusted Trailing Amount When you select an adjusted order type, the stop order you're adjusting will not trigger when the stop price is hit. Instead, it will be changed to this order type, and use the other parameters below. Select one of the stop order types. When your current stop price is penetrated, it will change to this order type and use the instructions you set in the following fields. This price will trigger the adjusted order you defined in the Adjusted Order Type. When the trigger price is hit, the adjusted stop price is implemented for the new order. Used for Stop Limit and Trailing Stop Limit orders. This value will be the limit price of the order if it is triggered and submitted. Used for Trailing Stop and Trailing Stop Limit orders. This value will replace the original trailing amount if the adjusted order is triggered. The following example continues to unfold for each field. You buy 100 shares of XYZ for $31.00/share, and submit a sell stop order with a trigger price of $ This means that if the price hits $30.00, TWS will send a sell market order to the exchange. Now let's modify this scenario. In addition to the above Stop order, you decide to create an adjustable Stop Limit order to help lock in a profit if the stock price begins to rise. Now imagine the price starts going up. When it hits the trigger price (see next field below) TWS will cancel the Stop order and create a new Stop Limit order with the characteristics you set in the following fields. Set the adjustable trigger price to $34.00 Set the adjusted Stop Price to $ When the stock rises above the $34.00 trigger price you set above, you original Stop order is cancelled and replaced with a Stop Limit order with a stop trigger price of $ Set the Stop Limit to $33.00 to ensure your order will not execute below this price. If you had a trailing stop order with a trailing amount of $1.00, you could set the adjusted trailing amount to $.50. If the adjustment trigger is hit, the trailing amount is modified. 180

180 Create an Auto Trailing Stop Order You can attach a trailing stop order to a limit order. The attached stop order is automatically activated when the limit order is filled. To attach a trailing stop to a limit order 1. Right-click on a limit order. 2. Select Attach and then select Auto Trailing Stop. To modify the trailing amount, use the Aux. Price field. To modify the stop trigger method, right-click on the attached trailing stop order and select Modify and then select Trigger Method. TWS calculates the initial Stop price using the market price - trail amount. To modify the initial stop price, display the Stop Price field by right-clicking in the column headers and selecting Customize Layout. From the Order Row list check Stop Price. Note that the value you enter may be displayed in the Stop Price field even if it is not used by TWS. 3. When the limit order executes, the trailing stop order is submitted. 181

181 Create a Bracket Order Bracket orders are designed to limit your loss and lock in a profit by "bracketing" an order with two opposite-side orders. A BUY order is bracketed by a high-side sell limit order and a lowside sell stop (or stop-limit) order. A SELL order is bracketed by a high-side buy stop (or stoplimit) order and a low side buy limit order. The order quantity for the bracketing orders is the same as that of the original order. By default, the amount off the current price to which a bracket order is set is 1.0. This offset amount can be manually changed on the order management line for a specific order, or you can modify the default offset amount using the Default Order Settings box. To create a Bracket order 1. Click the "Ask" or "Bid" price of an asset to create an Order Management line. Click the Ask Price to create a Buy order. Click the Bid Price to create a Sell order. 2. On the right-click menu, select Attach and then select Bracket Orders. 3. Verify that the order parameters are correct. 4. Transmit the order. NOTE: The "bracketing" or "child" orders are not transmitted until the original or "parent" order has executed. For a more detailed description of bracket orders and the products and exchanges supported, visit the Order Types information page. 182

182 Create a Conditional Order A conditional order is an order that will automatically be submitted or cancelled ONLY IF specified criteria for one or more defined contracts are met. You can use stocks, options, futures or security indexes to trigger a conditional order. To create a conditional order 1. Right-click on an order and select Modify, then select Condition. 2. From the Conditional tab on the order ticket click Add Condition. 3. Enter contract information for the contingent asset. 4. Enter the trigger information for the contingent asset: a. Select whether the price of the contingent asset should be less than or equal to (<=) or greater than or equal to (>=) the trigger price. b. Enter the trigger price. c. Select the trigger method. NOTE: If you select the double bid/ask method, the greater than or equal to operator (>=) will use the BID price and the less than or equal to operator (<=) will use the ASK price. 5. You can set up to three conditions on a single order. 6. Select the action to take when conditions are met, either Submit the order or Cancel the order. 183

183 Trigger Descriptions Trigger Method Last Double Last Double bid/ask Description For a sell (buy) order to be triggered: One last price value must be less than (greater than) or equal to the trigger price. The exchange or other market center where the order is to be executed must also publish (and the system must also receive) an ask price equal to or higher than, and a bid price equal to or lower than, the trigger price. For a sell (buy) order to be triggered: Two consecutive last price values must be less than (greater than) or equal to the trigger price. The exchange or other market center where the order is to be executed must also publish (and the system must also receive) an ask price equal to or higher than, and a bid price equal to or lower than, the trigger price. For a sell (buy) order to be triggered: Two consecutive ask price (bid price) values must be less than (greater than) or equal to the trigger price. Trigger Notes: o o o o The Last and Double Last methods have leeway to trigger up to 0.5% above the ask price or up to 0.5% below the bid price. This 0.5% amount of leeway is subject to change at any time without notice. For CASH contracts, the trigger method must always be the double bid/ask. For OTC stocks and US Options, the default trigger method is the double bid/ask. For all other contracts, the default trigger method is Last. For a more detailed description of conditional orders and the products and exchanges supported, visit the Order Types information page. 184

184 Create a Scale Order Automatically create a series of buy (sell) limit orders with incrementally lower (higher) prices, based on your original limit order. Although the created scaled orders stand alone, they are displayed below the original limit order after you define the order parameters. To create scale orders 1. Click in the Ask Price field to initiate a BUY order, or the Bid Price field to initiate a SELL order. 2. Select LMT in the Type field to specify a limit order. 3. Right click on the order and select Create Scale Orders. 4. In the Create Scale Orders dialog box, enter the number of limit orders you want to create. Press Enter to update summary information. 5. Enter the price decrement/increment by which to scale the series of orders. The price decrement/increment amount must be a positive number. For buy orders, the order prices decrease successively by the defined amount. For sell orders, the order prices increase successively by the defined amount. For a more detailed description of scale orders and the products and exchanges on which they're supported, visit the Order Types information page. 185

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186 Market Data Tools Enable Quick Stock Entry Quick Stock Entry is a page-level feature which automatically completes a market data line for a stock based on the underlying symbol you enter. To use the Quick Stock Entry feature, you must: create a list of order destinations enable a trading page for Quick Stock Entry To create Quick Stock Entry destinations 1. On the Configure menu, select Global Configuration. 2. In the left pane, select Quick Stock Entry Exchanges. 3. Click Add, enter a destination and click OK. 4. Add as many order destinations as you would like to have available. You can add more destinations at any time. Note: Add Smart to the list to be able to route via Smart order routing. Enter SuperSOES for Nasdaq stocks. "Nasdaq" is not recognized as an order destination. To enable a page for Quick Stock Entry When you enable Quick Stock Entry for a page, the system assumes that you want to enter ONLY stock tickers on this page, and automatically completes a market data line with the appropriate order destination. 1. Open the page you want to enable for Quick Stock Entry.

187 Note: We recommend that you identify the page as being enabled for Quick Stock Entry by naming it appropriately. 2. On the Page menu, select Settings. 3. In the Page Settings dialog box, select Quick Stock Entry. 188

188 Price/Risk Interactive Analytics SM Price/Risk Interactive Analytics (IA) is a suite of mathematical profit-measuring and riskassessment tools that uses a combination of market data and parametric values to: Assess the risk of your entire portfolio across asset classes, look at the risk of "whatif" scenarios and evaluate worst case risk scenarios using Value at Risk calculations (Portfolio Analytics). Risk-assess individual option classes (Option Analytics). Calculate option model prices based on live market data including the volatility smile (Option Modeler). The Index Arbitrage Meter illustrates the extent of the premium (or discount) of the lead month futures price above (or below) its fair future value with respect to the index price (Index Arbitrage Meter). IA valid for US stocks, stock options and index options. Portfolio Analytics Portfolio Analytics shows your portfolio risk across multiple asset classes, and allows you to create hypothetical "what-if" risk scenarios by adding, removing and modifying contract positions. Six tabbed pages show specific slices of your portfolio risk sorted by position, underlying, Greek risk dimension and Value at Risk. The bottom half of the Portfolio Analytics window displays portfolio- and sub-portfolio value plots, which show the contribution that each contract in your portfolio or sub-portfolio makes to the slope and curvature of the plot. For details on using Portfolio Analytics including the Value at Risk, see the Portfolio Analytics topics. For instructions on creating "what-if" scenarios, see Create What-if Portfolio Scenarios.

189 Option Analytics Option Analytics is accessed through the Option Trader window, and includes the following tools: The main Option Trader window which can be configured to display the real-time model prices, implied volatilities and the Greek risk measures. The Option Analytics window which shows theoretical prices over a range of underlying prices (updated on a daily basis). 190

190 Option Modeler The Option Modeler is accessed through the Option Trader window, and allows you to view and change the model pricing assumptions. Index Arbitrage Meter The Index Arbitrage Meter illustrates the extent of the premium (or discount) of the lead month futures price above (or below) its fair future value with respect to the index price. This tool opens by default if you have market data for indices on your trading page. For details on how to use and configure these tools, see the Option Trader for IA, Option Analytics, and Option Modeler topics. 191

191 Show/Hide the Index Arbitrage Meter The Index Arbitrage Meter illustrates the extent of the premium (or discount) of the lead month futures price above (or below) its fair future value with respect to the index price. A green bar indicates that the lead month futures price is at a premium to (i.e. greater than) its fair future value. A red bar indicates that the lead month futures price is at a discount to its fair future value. This tool is available for Index instrument types. To show or hide the Arbitrage Meter on Login When you log in, the Arbitrage Meter is displayed by default for all index instruments. To hide the arbitrage meter on login: 1. On the Configure menu, select Global Configure, then select Display in the left pane. 2. Check or uncheck Show Arbitrage Meter. To display the Arbitrage Meter for an index 1. Click on the desired market data line to select the index. 2. Right click and select Tools and then select Arbitrage Meter. 192

192 Portfolio Analytics Portfolio Analytics, part of a suite of risk analysis tools included in 's Interactive Analytics SM, allows you to look at slices of risk for your entire portfolio using the traditional Greek risk dimensions, across multiple asset classes. You can create "what-if" scenarios by dragging contracts into Portfolio Analytics from your trading screen and modifying the quantity and price point to affect hypothetical changes in the risk dimensions. Portfolio Analytics is accessible from the Analytics menu on the trading screen, and from the Option Trader. The Portfolio Analytics screens are split into two sections. The top section of each Portfolio Analytics page displays values directly relevant to your current portfolio, and is based on real-time market data. Each page in the tabset shows a slice of your risk. The tabset is organized as follows: Position - All of your positions and their values sorted alphabetically by underlying. Position Risk - The risk position for each underlying. Underlying Summary - The total risk by expiry and risk dimension (Greek value) for each underlying. Dimension Summary - The total risk by underlying and expiry for each risk dimension (Greek value). Portfolio Risk - The equivalent portfolio risk for all positions, and a summary of all stock and options values in your portfolio. The bottom section of each page displays a value plot and summary. The Portfolio Value plots are displayed for the Position, Dimension Summary and Portfolio Risk pages, and include results based on your entire portfolio. The Sub-Portfolio Value plots are shown for Position Risk and Underlying Summary pages, and plots a subset of the portfolio, which includes all of your positions in a single underlying and all of its derivatives. In both cases, the information in the bottom section is derived from a pricing model which is updated daily. 193

193 Portfolio Analytics - Position The Position tab displays all of your positions and their values sorted alphabetically by underlying. You can also elect to close selected positions or all positions in your portfolio using the right-click menu. To trade positions 1. Select one or multiple positions. 2. Using the right-click menu, select Trade Selected to close the selected positions, or Trade Portfolio to close all positions in your portfolio. Position Tab Field Symbol Description Position Price Value Description The underlying symbol. Identifies the asset type and other contract parameters. The number of units in your position for the contract. A positive quantity indicates a long position. A negative quantity indicates a short position. The last trade price for the contract. The current value of the position (Quantity) x (Price) x (Contract multiplier) A Portfolio Value plot can be seen at the bottom left of the window. It shows the change in portfolio market value over a range of underlying price changes. 194

194 Portfolio Analytics - Position Risk The Position Risk tab shows your risk position for each underlying grouped by expiry. Position Tab Field Strike Call Pos Put Pos Delta Gamma Vega Theta Description The strike price for the series. The number of units in your call position for the series. A positive quantity indicates a long position. A negative quantity indicates a short position. The number of units in your put position for the series. A positive quantity indicates a long position. A negative quantity indicates a short position. For stock positions - the number of units in your position for the contract. For options: {(delta call) x (call position) + (delta put) x (put pos) } x (contract multiplier) (Gamma) x {(Call Pos) + (Put Pos)} x (Contract multiplier). (Vega) x {(Call Pos) + (Put Pos)} x (Contract multiplier). (Theta) x {(Call Pos) + (Put Pos)} x (Contract multiplier). A Sub-Portfolio Value plot can be seen at the bottom left of the window. It shows the change in the sub-portfolio market value over a range of underlying price changes (a sub-portfolio includes all of your positions in an underlying and all of its derivatives). 195

195 Portfolio Analytics - Underlying Summary The Underlying Summary page tabulates the total risk by expiry and risk dimension for each underlying. Position Tab Field Expiry Delta Gamma Vega Theta Description The expiry for the given underlying. The sum of all Delta risk positions for the given underlying and expiry. The sum of all Gamma risk positions for the given underlying and expiry. The sum of all Vega risk positions for the given underlying and expiry. The sum of all Theta risk positions for the given underlying and expiry. A Sub-Portfolio Value plot can be seen at the bottom left of the window. It shows the change in the sub-portfolio market value over a range of underlying price changes (a sub-portfolio includes all of your positions in an underlying and all of its derivatives). 196

196 Portfolio Analytics - Dimension Summary Each Greek value represents a different dimension of risk. The Dimension Summary page tabulates the total risk by underlying and expiry for each of these risk dimensions. Dimension Summary Tab Risk Dimension Delta Gamma Vega Theta Description Delta represents the change in an option price relative to a change in the price of the underlying. Each cell in the expiry column(s) represents the sum of all Delta risk positions for the given underlying and expiry. Gamma represents the rate of change of Delta. Each cell in the expiry column(s) represents the sum of all Gamma risk positions for the given underlying and expiry. Vega represents the change in an option price relative to a change in volatility. Each cell in the expiry column(s) represents the sum of all Vega risk positions for the given underlying and expiry. Theta represents the time-value decay. Each cell in the expiry column(s) represents the sum of all Theta risk positions for the given underlying and expiry. A Portfolio Value plot can be seen at the bottom left of the window. It shows the change in portfolio market value over a range of underlying price changes. 197

197 Value at Risk Summary The VAR summary tab shows the greatest loss that a portfolio will sustain over a one-day period, with 99% confidence. To load the VAR summary, click the Refresh button in the upper right corner of the VAR page. The VAR's are calculated using three different methods, each with different assumptions about correlations of the underlying assets in the portfolio. Worst Case - Identifies the sum of the greatest loss of each underlying in your portfolio assuming each product moves independently to the worst loss within a 3 standard deviation range of each underlying. Perfect Correlation - Assumes each product is perfectly correlated to a reference index. It then looks for the worst loss within a 4.5 standard deviation range of the reference index. Index Correlated Price Estimate - Assigns a correlation (Beta) to each underlying in your portfolio to a reference index, and then looks for the worst loss within a 4.5 standard deviation range of that index. 198

198 Portfolio Analytics - Portfolio Risk Displays the equivalent portfolio risk for all positions, and provides a summary of all stock and options values in your portfolio. Portfolio Risk Tab Risk Table Description Greek Delta represents the change in the option price relative to a change in the price of the underlying. Gamma represents the rate of change of Delta. Vega represents the change in the option price relative to a change in volatility. Theta represents the time-value decay. Portfolio Equivalent Position Position Risk Hypothetically scales all positions in your portfolio to be equal to $ per share. Shows the change in the Greeks if the price of each underlying were to change by one dollar (1%). Below the Risk table are two summary tables of all Stock and Option positions in your portfolio. The Stock summary shows all long positions, all short positions, the net and the gross shares, and the corresponding values. The Option summary shows all long calls and puts, all short calls and puts, and the net and gross units, and the corresponding values. 199

199 A Portfolio Value plot can be seen at the bottom left of the window. It shows the change in portfolio market value over a range of underlying price changes. 200

200 Portfolio Value The Portfolio Value summary window shows the change in your portfolio's value over a range of underlying price changes, and shows the contribution that each contract in your portfolio makes to the slope and curvature of the Portfolio Value plot, at the price point shown. Each row of the table names a contract and shows your position as well as the contribution that position makes to the price risk (delta) and curvature risk (gamma) at the named price point. The final row of the table contains the total price and curvature risk at the named price point. The Portfolio Value plot to the left of the summary shows the total value of all your positions over the intersection of the ranges of the price scans for each underlying. You can view the Portfolio Value on the Position, Dimension Summary and Portfolio Risk tabs. The Portfolio Value summary lets you dissect the risk exposure of your portfolio not only at the current market price (represented by a 0.0 price point) but also at any price within the price scan range. By examining both the slope and curvature contribution of each position, you can determine how to modify your portfolio, thereby changing your portfolio value curve to suit your own risk limits. Create "what-if" scenarios to better understand the risk within your portfolio. If your portfolio value curve falls outside your risk tolerance for part of the price scan range, you can use the "what-if" feature to devise trades to reduce your risk profile to within your risk bounds. The "what-if" feature allows you to: Change the underlying price to view the slope and curvature contributions that would prevail at that price. Change any set of positions in your portfolio to see how they would modify both the Portfolio Value plot and Portfolio Value summary. Add new contracts to your "what if" portfolio and set the position to see how they will modify both the Portfolio Value plot and Portfolio Value summary. You can sort on any column by clicking the column header. To reverse the sort (from ascending to descending, or descending to ascending) click the column header again. Portfolio Value Summary Table Field Contract Description Identifies the contract by underlying, instrument type, currency, (expiry, strike price, right). 201

201 Portfolio Value Summary Table Position Delta Gamma Price Point Your signed position in the contract. The change of your portfolio value due to a one percent change in the underlying price, at the underlying price specified by the value in the Price Point field. This is the contribution to the slope of the Portfolio Value curve. The change in your associated Delta value due to a one percent change in the underlying price, at the underlying price specified by the value in the Price Point field. This is the contribution to the curvature of the Portfolio Value curve. The starting price point value of 0.00 corresponds to the current underlying price. Each whole number change (positive or negative) corresponds to a one-percent change in that direction in the underlying price. 202

202 Sub-Portfolio Value For the purposes of Interactive Analytics, SM a sub-portfolio includes all of your positions in an underlying and all of its derivatives. The Sub-Portfolio Value summary window shows the change in this subset of your portfolio's value over a range of underlying price changes, and shows the contribution that each position in your sub-portfolio makes to the slope and curvature of the Sub-Portfolio Value plot, at the price point shown at the bottom of the window. Each row of the table names a contract and shows your position as well as the contribution that position makes to the price risk (delta) and curvature risk (gamma) at the named price point. The final row of the table contains the total price and curvature risk at the named price point. The Sub-Portfolio Value plot to the left of the summary shows the total value of all your positions in an underlying and its derivatives over a specific price range for its underlying. You can view the Sub-Portfolio Value on the Position Risk and Underlying Summary tabs. The Sub-Portfolio Value summary table lets you dissect the risk exposure of your subportfolio not only at the current market price (represented by a 0.0 price point) but also at any price within a specific price range. By examining both the slope and curvature contribution of each position, you can determine how to modify your sub-portfolio, thereby changing your sub-portfolio value curve to suit your own risk limits. Create "what-if" scenarios to better understand the risk within your sub-portfolio. If your subportfolio value curve falls outside your risk tolerance for part of the specific price range, you can use the "what-if" feature to devise trades to reduce your risk profile to within your risk bounds. The "what-if" feature allows you to: Change the underlying price to view the slope and curvature contributions that would prevail at that price. Change any set of positions in your sub-portfolio to see how they would modify both the Sub-Portfolio Value plot and Sub-Portfolio Value summary. Add new contracts to your "what if" sub-portfolio and set the position to see how they will modify both the Sub-Portfolio Value plot and Sub-Portfolio Value summary. You can sort on any column by clicking the column header. To reverse the sort (from ascending to descending, or descending to ascending) click the column header again. 203

203 Sub-Portfolio Value Summary Table Field Contract Position Delta Gamma Price Point Description Identifies the contract by underlying, instrument type, currency, (expiry, strike price, right). Your signed position in the contract. The change of your portfolio value due to a one percent change in the underlying price, at the underlying price specified by the value in the Price Point field. This is the contribution to the slope of the Sub- Portfolio Value curve. The change in your associated Delta value due to a one percent change in the underlying price, at the underlying price specified by the value in the Price Point field. This is the contribution to the curvature of the Sub-Portfolio Value curve. The starting price point value of 0.00 corresponds to the current underlying price. Each whole number change (positive or negative) corresponds to a one-percent change in that direction in the underlying price. 204

204 Create What-If Portfolio Scenarios Portfolio Analytics lets you create and view the risk implications of one or multiple "what-if" scenarios. Use the "what-if" feature to determine if trades you are considering will leave your risk profile within your risk bounds. All of the "what-if" scenarios are outlined in red for easy identification, and have the portfolio title at the top of the window. You can also elect to open actual positions for some or all of the "what-if" positions in your hypothetical portfolio. To create a "what-if" scenario 1. On the Portfolio menu at the top of the largest window select New. 2. From the trading screen, drag contracts into the "What-If" window. You can modify the Price Point% or the Position values to change the scenario. Save a portfolio using the Save command on the Portfolio menu. The active portfolio has a blue title bar and is at the top of the stack of open Portfolio windows. Any specific commands you use will be applied to the active portfolio. To add/subtract positions from other portfolio files 1. From the active portfolio, on the Edit menu select Add From or Subtract From. 2. Select a portfolio to add/subtract. The add/subtract selection list only displays names of portfolios that are currently open. 3. Click OK to add or subtract positions from the active portfolio. The add/subtract feature nets out positions common to both portfolios, and creates a contract line for each new contract (even if the position is "0"). You can add/subtract the same portfolio multiple times. Current positions are netted out each time. To create a "what-if" scenario based on your current portfolio 1. On the Portfolio menu, select New. 2. On the Edit menu, select Add From. 3. Click OK to add your current portfolio (My Portfolio). This creates a copy of your portfolio. You can now drag in new contracts from your trading screen, and see the results of modifying your positions without actually committing to any changes. 205

205 To save a "what-if" portfolio 1. On the Portfolio menu select Save As. 2. Enter a file name and click Save. To reload the last saved version Use this command to reset all values in the active portfolio to the last saved version. This command only works on an unsaved file. An unsaved portfolio will display an asterisk "*" at the end of the title. 1. On the Edit menu select Reload from file. 2. Confirm that you want to reload the file and lose all of your unsaved changes by clicking Yes. To open positions from a "what-if" scenario 1. Select one or multiple positions. 2. Using the right-click menu, select Trade Selected to open positions on the selected contracts, or Trade Portfolio to open positions for all contracts in your what-if portfolio. 206