TWS Intermediate Webinar Notes

Overview

Trader Workstation (TWS) has been designed with the professional trader in mind. You choose the workspace that best suits your trading needs and efficiency with our market maker-designed platform:

TWS Intermediate

Advanced Order Interface

If you did not select the Advanced Order spreadsheet as your default interface, traders who need more advanced tools and algos can easily access the interface from the Mosaic New Window button.


Components

Advanced Order mode provides Customizable Quote Monitor tabs in a spreadsheet interface for an uncluttered and personalized trading environment. A quick access toolbar with icons for specialized trading components appears at the top of the window.

Each Quote Monitor tab displays common market elements such as bid/ask prices and sizes, last price, close etc. for all tradable products.

Enter ticker symbols in the Contract column and select instrument and routing destination. The market data row populates with real-time updates.

Market Data fields can be customized through the Global Configuration window. Use the Wrench icon.

Position, daily P&L and Unrealized P&L columns are available on your quote line for real-time position information wherever a held ticker is displayed.

There’s no limit to the number of tickers you can add – but only 100 will show active quotes at any one time. Use the “+” tab and add more quote monitor tabs to organize and sort your watch lists. Large lists can be imported from a csv file.

Menus display actively used features. An arrowhead appears at the bottom of each drop down menu to indicate additional selections are available.


Navigation

Search field – in upper right will help you locate specific features – plus SHOW you how to access them. Enter a keyword (dashboard for example) and allow the search engine to draw your attention to the menu, page selection even zooming in on the exact item.

Right-click for intuitive context- sensitive pop-up menus, based on where you right-click.


Trading

While the Mosaic feature handles basic order types, the Quote Monitor in Advanced Order mode allows you to create and manage the more complex order types.

Use the Quick Click order capability to instantly create orders with a left click on the Bid or Ask price of an interactive quote line. Note the text that appears when you hover your mouse on a bid/ask price.

The order row appears directly beneath the market data row. The Order Row will populate with default order values instead of a blank line. Click within any of the fields to edit the criteria before transmitting. Additional order fields can be added using the green “+” from the column header.

Order types matrix on the IB website, under the Trading menu organizes the 50+ selections and provides drill-down access to step-by-step order creation.

Order Presets allow you to define the default values for your orders, as well as create and save multiple named order strategies by instrument or for specific symbol(s).

Right-click on any ticker row and choose Configure Order Presets – also accessible from Edit | Global Configuration | Presets.

Specialized trading tools are available from the quick access tool bar at the top of the Quote Monitor or with a right-click on a quote line. These Optimized trading features with embedded order entry tools can also be accessed in Mosaic > New Window >More Advanced tools.

Each of these components functions independently, yet they all share common elements allowing you to view market data, submit and manage orders, monitor activity logs, view execution reports and updates to your portfolio positions.

Alerts

Create alerts using real time market data and/or account values. Select the New button in the Alerts window to define the alert parameters – such as price movement, time and date, trading volume or the state of your margin cushion.

Alerts send a pop-up message to your trading screen, an email message or a text message to your smart phone. Alerts can also trigger a pre-defined buy or sell order.

Conditions area – lets you define the conditions which must be met to activate the alert:

Actions area – where you define the action that will occur when the conditions are met, such as sending a pop-up message on your trading screen, an email, text message, or initiating a predefined order.

Duration section – the alert will remain active until it triggers or you cancel it. You can choose to have the alert remain active through a specific date and time by selecting Alert active until...

Preview contains a description of the alert conditions you have specified.

TWS Intermediate

BasketTrader

BasketTrader offers professional traders and investors the ability to simultaneously trade a basket of individual underlying components that can be managed and submitted as a package execution. Baskets are used in index arbitrage, program trading and hedging.

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Create a basket file

A Basket order can contain multiple order types on various products, and include any supported time in force or order attribute.

Start in the Quote Monitor and create orders to include in the basket file.

Note: When you create a basket file, you can only include contracts from the same Trading page.

You can also construct and edit a basket file manually in an application such as Excel – but we found the easiest way to create a basket file is to start with a sample, formatted order that you create through TWS. Then when you save the basket file you have a sample layout as a starting point for adding your own header/order row and basket components.


Submit a Basket Trade

Loading a basket order is as easy as selecting your custom-designed file from the Basket File list at the top of the BasketTrader.

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The Orders panel shows you real-time summary information about the basket, including the number of orders, total shares, and the estimated total value of the orders in your basket.

The Execute panel lets you set allocation criteria to control the quantity submitted.

The Summary panel shows you statistics across all areas of the order, including overall totals, filled totals and percent of the basket for orders, shares and currency.


Index-based Baskets

You can manage a traditional index-based basket of stocks based on a using the index composition or a statistical composition.

Open BasketTrader and select “Show Index Panel” button or select IndexTrader from the New Window > Advanced Trading tools menu.

BookTrader

Market maker designed to instantaneously transmit orders from a deep book ladder of prices, the TWS BookTrader is a favorite among active traders, scalpers, and those looking to take advantage of immediate arbitrage opportunities.

This window displays the order book with trade able volume at each price level in a ladder of prices and allows you to create Limit, Stop and Bracket orders with a single click.

The price ladder is colors coded for at-a-glance information on current bid and ask prices, the day's trading range, order types and order status.

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Create an order by selecting a specific price row then


Order Management

Your choice of how to display the status fields in the BookTrader, drives the order management procedures.

Use the Order control section of the Configure Settings to tell TWS how to handle multiple orders on the same side.

When Show Separate Status Column is selected, BookTrader works in Advanced Mode:

To return to the default click actions, be sure to click None.

Click a price level in the Order Column to attach the child order indicated on the context sensitive cursor. When you select a price level in the order column the selected order is attached to the parent order in that column.

Chart Trader

You can place and manage your trades directly in a real time chart by enabling the Hot Buttons in the chart View menu.

Additional order functions, such as attaching a bracket order or checking margin can be accessed with a right-click on the order line in the chart or in the ChartTrader panel.

TWS Intermediate

You can also choose to show My Trades with mouse-over details in the chart, through the Edit > Global configuration window. A small red line indicates a sell, a blue line indicates a buy at the price level where trade filled.

Integrated Stock Window (ISW)

The ISW is a dynamic, customizable stock-management interface that combines Level I and Level II market data, real-time charting, rapid order entry and complete order management into a single screen.

TWS Intermediate

The Quote Panel displays market data for the selected stock symbol.

Book Data panels allow traders to see prices of larger trades and the size behind the spreads.

Chart Panel displays real time with access to chart functions via a right-click in the chart.

Order Entry Panel – to create and manage your trades. The order line is tagged as “NEW” if the order has not been transmitted.

Market Scanners

The Market Scanners automatically populate a pre-formatted trading page with related market data for stocks, bonds, futures and indexes based on specified criteria.

You can create a custom scan that you check each day by simply leaving the defined scan parameters on a trading page, which is automatically named using the scanner title. You can create as many "scanner" trading pages as you need by using the “+” tab and select the Market Scanner layout. For example, Stocks as the instrument enables the selection to scan by Sector, Industry and Category.

Work from top to bottom and left to right, because choices made will determine the remaining selections:


Search Bar

TWS Intermediate

Data is updated every 60 seconds. Most scans return the top 50 contracts or you can select the number of results. High Dividend Yield scan for US Stocks returns the top 750 contracts.

Rebalance Portfolio

The TWS Rebalance window displays all your hold positions, and shows the percent contribution each makes to your portfolio.

TWS Intermediate

Use the Rebal % field to define a new percent for each position.

NOTE: For options and futures, the rebalance % is based on the underlying prices.

Merger Arbitrage

Use the TWS Merger Arb feature when a merger or acquisition offer is announced. This trading tool allows you to quickly and easily create a combination order for an anticipated merger between two companies from a single window.

Example: The deal RRR holders will receive $10.80 in cash and 0.2793 of a share of URI common stock.

Note: any field in pink must have a value before the OK button will become active.

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The combo order as entered above, and then opened in Accumulate/Distribute looks like this:

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The remainder of the Accumulate Distribute window allows you to specify detailed order management criteria to help ensure that you receive the best price without being noticed.

Market Depth

The aggregate Market Depth window facilitates large volume trades using cumulative quantities and average execution price available at a particular price or better.

Components include real-time Level I and Level II data, account and trade information, and comprehensive order entry.


Bonds

All Bonds orders and quotes entered by participants are represented in IB's order book. And with IB SmartRouting destinations for bonds such as Knight BondPoint, Tradeweb, Bond Desk and NYSE Arca Bond, IB connects to alternative bond trading systems – giving IB customers access to multiple sources of liquidity. This enhances the liquidity that you can access, but that extra liquidity comes at a cost.

Each of the away platforms has their own fee schedule – which varies depending on the platform, type of bond and the quoted size and can have a significant impact on the net price of the trade.

Since these fees can vary significantly, you can now choose to view the bond quotes as “net” prices, adjusted to reflect the platform fees for the type of bond and the quoted size (excluding IB’s commission). Global Configuration > Display > Ticker Row under Fixed Income Pricing you can select either Show Net Price or Show Raw Price.

When you have the net mode selected, an additional quantity field allows you to input a quantity at which you would like to see the net prices calculated. This allows you to view market data in net price terms with the size that you want to trade, which can help you compare execution costs.

Any symbols displayed are for illustrative purposes only and do not portray a recommendation.

Interactive Brokers LLC is a member of NYSE, FINRA, SIPC