Understanding Thinkorswim Order Types and Their Benefits

thinkorswim offers a range of order types to help you execute trades with precision and control.

Market orders allow you to buy or sell a stock at the current market price, while limit orders enable you to set a specific price at which you want to buy or sell a stock.

Thinkorswim offers various order types to help you manage your trades. Most of these are familiar, but some may require a closer look.

An OCO (One Cancels the Other) order is a type of order that allows you to set up two different orders for a position: a profit target and a stop loss. When either of these orders gets filled, it automatically cancels the other order.

You can create a buy stop order for your opening trade by duplicating a saved order. To do this, switch to the "Saved Orders" tab, right click on the order, and choose "Create Duplicate Advanced Order."

The First Triggers All order type is similar in nature to the First Triggers Sequence and Blast All order types. It waits for the initial order to execute, then immediately sends the remaining orders for execution all at once.

This order type is designed for traders who want to execute multiple orders in a single transaction. The Blast All order type, for example, can submit up to 8 separate order instructions at one time. This feature is particularly useful for traders who want to execute multiple trades quickly.

The First Triggers All order type can be used in conjunction with other order types to create complex trading strategies. For instance, you can use it to execute a series of trades based on specific market conditions.

Thinkorswim offers several order types that can benefit your trading. Most of them are intuitive, but some are more elusive to understand.

One of the lesser-known order types is the OCO order, which stands for "One Cancels the Other." It's used in stock market trading to set up two different orders for a position: one for a profit target and another for a stop loss.

An OCO order automatically cancels the other order when either the profit target or stop loss order gets filled. This feature can help you manage your trades more efficiently.

You can create a buy stop order for the opening trade by switching to the "Saved Orders" tab and right-clicking on your order to create a duplicate advanced order. From there, you can review and confirm your order before sending it.

Thinkorswim also offers the ability to reuse saved orders, which can save you time and effort in the long run. By duplicating and customizing your orders, you can create a library of reusable orders that can be used across multiple accounts.

Here's a quick rundown of the steps to create a duplicate advanced order:

A GTC (Good Til Cancelled) order is an order placed by an investor to buy or sell a security that stays working until the order is filled or canceled by the customer or broker.

GTC orders remain working in the customer account until the customer cancels the order, so it's essential to periodically check and make sure the order is still working.

Some brokers cancel GTC orders in error, and it's not uncommon for them to cancel these orders after 90 days, so it's crucial to keep an eye on your orders.

The best practice is to periodically check and make sure the order is working, as brokers sometimes cancel GTC orders in error.

GTC orders are best for long-term traders who don't monitor the market closely.

Here are some key facts about GTC orders:

MOC orders trade at the very end of the day, allowing investors to trade out of positions without monitoring their accounts.

These orders fill as close as possible to a security's final daily trading price, making them a handy tool for day traders.

MOC orders can result in poor fills in thin markets, so it's best to avoid them if you're trading options or thinly traded stocks.

Here are some key facts about MOC orders:

A DAY order is the default type for most brokers, meaning it's only working for the day. It's activated at the opening bell and canceled at the closing bell.

If you send a DAY order before the market opens, it won't be activated until the opening bell. If you send it after the market closes, it will be working for the next trading day.

DAY orders are canceled at the closing bell, so if you send one 5 minutes before, it will only be working for those 5 minutes.

Here are some key facts about DAY orders:

If sent after the closing bell, a DAY order will be working for the following trading day.

All DAY orders are canceled at the closing bell. 

A Market order is an order type that tells the broker to buy or sell at any available price.

This order type is usually the fastest way to get into or out of a position, as it's typically filled immediately at any available market price.

A Market-on-Close (MOC) order is a type of Market order that signals the broker to execute at the close, receiving the last available traded price of an asset for that particular day.

A Limit order is the most common order type, telling the broker to buy or sell at a specific price.

The Limit order will not be executed until the price selected can be guaranteed, so you can rest assured that your trade will be made at the price you want.

A Limit order can be used to buy or sell a security, and it's a great way to set a specific price for your trade.

There are different types of Limit orders, but they all share the same goal: to execute a trade at a specific price.

A Stop Limit is a type of Limit order that signals the broker to execute a LIMIT order when price breaches a certain level.

The Limit on close order type employs a LIMIT order at the close of the trading day, and the order will NOT be executed if the desired limit price cannot be obtained.

These types of orders are great for investors who want to have more control over their trades and set specific prices for buying or selling.

A Market order is an order type that tells the broker to buy or sell at any available price.

This order type is usually the fastest way to get into or out of a position, as it's typically filled immediately at any available market price.

Market orders are straightforward and easy to execute, making them a popular choice among traders.

The key characteristic of a Market order is that it's executed at the current market price, which can be either the bid or the ask price.

Market-on-Close (MOC) orders are a type of Market order that signals the broker to execute at the close, receiving the last available traded price of an asset for that particular day.

This order type is useful for traders who want to capture the closing price of an asset, rather than the current market price.

Extended-Market orders allow you to trade outside of normal market hours, from 4:00 A.M. to 9:30 A.M. ET and 4:00 P.M. to 8:00 P.M. ET, according to the NYSE.

This means you can place orders during these times, but be aware that extended markets are notorious for their illiquidity, which can result in wide bid-ask spreads and volatile stock prices.

If you're looking to capitalize on these large swings, you can use an EXT (Extended-Market) order, which instructs your broker to only work the order during extended market hours.

EXT orders are not working during normal trading hours, and unless tagged GTC (Good Til Canceled), they will only stay working for one session.

To use an EXT order, simply designate it as such with your broker, and be prepared for the potential risks and rewards that come with trading in extended markets.

Here are the key details to keep in mind when using EXT orders:

The thinkorswim platform offers a range of advanced order types that can help you execute trades more efficiently.

One of these order types is the Trailing Stop, which allows you to set a stop-loss order that moves with the market, automatically adjusting the stop price as the trade moves in your favor.

This can be especially useful in volatile markets where prices can fluctuate rapidly.

A Stop Limit order is an order type that signals the broker to execute a LIMIT order when price breaches this level.

This order type is generally used to execute orders if the investor is unable to monitor the position during market hours.

It's essentially a combination of a stop order and a limit order, and it's the most common form of stop order.

A Stop Limit order will not be executed until the price selected can be guaranteed, just like a Limit order.

This means the investor can set a specific price at which they want to buy or sell, and the broker will only execute the trade if that price is reached.

The Trail Stop is an order type that signals the broker to create a stop order at a certain price or percentage amount from the asset's current market price.

This order type is dynamic and will move up or down as the price moves higher or lower. It's a useful tool for investors who want to limit their losses or lock in profits.

If entering a Trail Stop order for a long stock position, the trailing stop will move incrementally higher as the price moves higher. The stop price will not move lower.

The Trail Stop is often used in fast-moving markets to guarantee a fill if the price breaches a pre-defined stop price. It's a more advanced order type that requires some knowledge of how it works.

If entering a Trail Stop order for a short stock position, the trailing stop will move lower incrementally as the price moves lower. The stop price will not move higher.

A Trail Stop Limit order is similar to the Trail Stop, but once the stop price is triggered, the order direction is to guarantee a certain price.

The First Triggers Three order type is a bit more complex, but it's still based on the same principle as the First Triggers One-Cancels-Other (1st Trgs OCO) order type.

The initial position must be fully executed before the next sequential order is applied to the market, just like with the 1st Trgs OCO order type.

This order type executes the initial order followed by 3 distinct bracket trades or OCO orders, each consisting of two orders paired together.

Each OCO order would likely consist of differing values to promote the need for it in the first place, which is a key aspect of this order type.

The logic behind the First Triggers Three order type is that once one of the orders is triggered and filled, the other order is cancelled, just like with the 1st Trgs OCO order type.

The First Triggers Two order type is a powerful tool for traders. It allows you to send two One-Cancels-Other (OCO) orders to the market after the first trade is completed.

You can use this order type to execute two different sell orders, for example, after purchasing 100 shares. Each order would be packaged into OCO form with a profit target and a loss target, and if one is executed, the other is cancelled.

To set up this order type, you'll need to create a buy stop order for the opening trade. This involves switching to the "Saved Orders" tab, right-clicking on your order, and choosing "Create Duplicate Advanced Order".

Here's a step-by-step guide to setting up your First Triggers Two order:

1. Switch to the "Saved Orders" tab.

2. Right click on your order and choose "Create Duplicate Advanced Order".

3. Switch back to the "Order Entry" tab and review your order.

4. Click "Confirm and Send" to send the order to the market.

Note that you can reuse your saved order by clicking on the "Active Trader" tab and checking the "auto send" box. This will allow you to adjust your limits and send the order to the market.

In the world of advanced order types, you'll find sophisticated strategies that can help you maximize your profits and minimize your losses.

Limit orders allow you to set a specific price at which you want to buy or sell a security, and they can be especially useful for traders who want to avoid market volatility.

By using stop-loss orders, you can limit your potential losses to a certain amount, helping to protect your capital from significant downturns.

A trailing stop-loss order adjusts the stop-loss price as the stock price moves in your favor, allowing you to lock in profits and limit potential losses.

In some cases, you may want to use a combination of limit and stop-loss orders to achieve your trading goals, such as setting a limit order to buy a stock at a certain price and a stop-loss order to sell if it falls below a certain level.