How to Short on Thinkorswim

One of the world’s best trading platforms that are powered by TD Ameritrade is Thinkorswim. It is one of their best options available for experienced and beginners. Plus, the fact that it’s available on PC and mobile platforms is a bonus.

This platform is perfect for everyone; in fact, you can easily short stocks on the go, thanks to their mobile platform. But before we learn Thinkorswim, we must know how to set it up.

Generally, learning thinkorswim how to use is the same as buying/selling stocks. But there are a few things you have to consider, like the account eligibility and interest fee. For more on how to setup Thinkorswim for day trading, please read on.

How to Add VWAP on Thinkorswim

The Volume Weighted Average Price (VWAP) is one of the most famous indicators that let day traders determine the key price levels on their charts. Fortunately, setting up the VWAP on Thinkorswim is quite straightforward. Simply go to the Thinkorswim profile.

Look for a tab written “studies” and then “edit studies.” This will open a different window, and you can type in the search bar and click it. Next, you’ll see the graph where you can install this indicator (Lower, Price, and volume).

In our case, you can install it on the price window. Click the settings icon and set the inputs at 0.0 and the period to “day.” pick the color, click OK, and you’re good to go.

Take this one step further witht he xBrat VWAP Predator, designed for scalpers and ay trader for  Thinkorswim. Check it out HERE

How to Buy Stock on Thinkorswim

To purchase stocks on thinkorswim, you can start by pulling the “Trade.” Input the stocks symbol of the “All Products” tab and see:

  • The name of the stock
  • Where is the stock listed?
  • Is it easier to borrow?
  • Last traded loss or gain

For more details, you can click the company profile for more information and thinkorswim’s take on the named stocks.

There are several ways you can purchase stock, but one of the most common ways is finding the underlying section. Click “Ask X,” and an order form will pop up. Input the total number of shares, order type, and price. Read through the details and click submit, and your order will execute in 0.06 seconds.

Now, you know how to trade on thinkorswim, but do you know how to set up thinkorswim for day trading?

Setting up Thinkorswim for Day Trading

Start by opening an account with TD Ameritrade and downloading their installer. When you double-click the installer, a wizard that will help with the installation process will appear. After installing the setup, you can log in using your credential.

Next, you can import the thinkorswim layout if you have one. Simply go to setup and then “Open Shared Item.” A window will pop up; paste the link to the layout and then click import. Once imported, you can find the new layout by clicking the setup icon. When you load the layout, you’ll have an active trader window.

To make life easier, make sure you set the hotkeys option found in the app settings. Basically, those are shortcuts that you can use to execute your order. So make sure you set everything correctly for fast execution. Fortunately, setting up this platform for day traders is as easy as learning how to change paper money amount in thinkorswim.

How to Use Active Trader on Thinkorswim

Generally, the active trader tab refers to a unique interface designed for option traders. In fact, anyone can benefit from this platform’s features which include a high customization level, one-click order entering, and an ask/bid price ladder. You can access this interface by clicking the Active Trader on this platform’s Trade Tab.

When active, the interface will display the Active Trader plus Chart. The Active trader is composed of the AT Ladder and Big Buttons. On the right side, you’ll find a control bar that will help you remove or add several gadgets.

Some of these gadgets include corresponding Live News, Level II, Dashboard, Active Trader, and time and sales buttons. Fortunately, you can customize the AT grid by clicking the right corner. Another crucial feature is the trading ladder.

This ladder summarizes some of the most useful points about the shares all day long. Some of these details include working orders, volume, bid-and-ask sizes, and current price. This feature can be used to place limits and stop orders.

Another crucial feature is the big buttons panel is composed of 2 lines of trade command buttons. The second line is not usually visible, but you should click the Show Button Area on the first line. The first line usually contains the buying market, flatten, reverse cancel, and sell market buttons.

The second line of the Big Buttons panel will include Auto Send, template, and quantity. The quantity represents the total shares or contracts traded. The Auto send button will let you skip order confirmation and send your orders directly to the market.

Thinkorswim Setup: Tips and Tricks for Option Trading

The Thinkorswim setup is an exceptional platform for active traders and beginners, thanks to its many features. Some top tricks and tips on how to set up thinkorswim for options trading include:

  • Chart describer is a unique tool that functions like a market scanner in reverse. Basically, it knows every indicator and shows you which ones are in play. It pulls all the technical analysis updates of a certain symbol.
  • It’s fully customizable thanks to the AT ladders: another crucial power of this platform is that it’s customizable. Basically, you can set it up in any way you want. For instance, active traders can set their display in a bird’s eye view action and easy-to-access buttons. As the market moves, so does this tool.
  • The theoretical price feature of thinkorswim helps you assess what would happen if the price of the call option hits the strike price at a certain point.
  • The options time and sale: this feature shows you how the options are traded. It will show you some big money moves made during a certain period and help you determine your future trades. Fortunately, You can learn thinkorswim course from our how to short on thinkorswim guide.



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