Thinkorswim is an advanced trading platform that provides traders with a wide range of tools and features to manage their trades effectively. One of the most important tools for managing risk in trading is the stop loss order. A stop loss order is a type of order that is designed to limit the amount of loss that a trader can incur on a trade. If the market moves against the trader, the stop loss order will automatically close out the trade at a predetermined price level, thereby limiting the amount of loss that the trader can incur.
In this article, we will discuss how to adjust the stop loss on Thinkorswim forex trade. We will cover the basic steps involved in setting up a stop loss order, as well as some of the more advanced features that are available on the platform.
Step 1: Open a Forex Trade
The first step in adjusting the stop loss on Thinkorswim forex trade is to open a forex trade. To do this, you will need to log in to your Thinkorswim account and navigate to the Forex trading platform. Once you are on the platform, you can select the currency pair that you want to trade and enter the amount that you want to invest.
Step 2: Set Your Stop Loss Order
Once you have entered your trade, you will need to set your stop loss order. To do this, you can follow these steps:
1. Right-click on the trade that you want to set a stop loss for.
2. Select “Create Order” from the drop-down menu.
3. In the order entry window that appears, select “Stop Limit” from the Order Type drop-down menu.
4. Enter the price level at which you want your stop loss order to be triggered in the “Stop Price” field.
5. Enter the price level at which you want your trade to be closed out in the “Limit Price” field.
6. Click “Confirm and Send” to submit your order.
Step 3: Adjust Your Stop Loss Order
If you need to adjust your stop loss order, you can do so by following these steps:
1. Right-click on the trade that you want to adjust the stop loss for.
2. Select “Modify or Cancel Order” from the drop-down menu.
3. In the order entry window that appears, make the necessary adjustments to your stop loss order.
4. Click “Confirm and Send” to submit your modified order.
Advanced Features for Adjusting Stop Loss on Thinkorswim Forex Trade
Thinkorswim also provides traders with a range of advanced features for adjusting their stop loss orders. These features include:
1. Trailing Stop Orders: A trailing stop order is a type of order that is designed to follow the market price as it moves in the trader’s favor. This means that the stop loss order will automatically move up as the market price moves up, thereby locking in profits.
2. OCO Orders: An OCO (One Cancels Other) order is a type of order that allows a trader to set two orders at the same time. If one order is executed, the other order is automatically canceled. This is useful for traders who want to set a stop loss order and a profit target order at the same time.
3. Contingent Orders: A contingent order is a type of order that is triggered by a specific market condition. For example, a trader can set a contingent order to trigger if the market price reaches a certain level, or if a specific news event occurs.
Conclusion
In conclusion, adjusting the stop loss on Thinkorswim forex trade is a crucial aspect of managing risk in trading. By setting up a stop loss order, traders can limit their potential losses and protect their trading capital. Thinkorswim provides traders with a wide range of tools and features for setting up and adjusting stop loss orders, including trailing stop orders, OCO orders, and contingent orders. By using these tools effectively, traders can improve their trading performance and achieve greater success in the forex market.
