Think or Swim is a popular trading platform among forex traders. It is widely known for its advanced charting tools, customizable layout, and powerful trading features. One of the essential skills that every trader should know is how to close a forex trade in Think or Swim. In this article, we will discuss step-by-step guidelines on how to close a forex trade in Think or Swim.
Step 1: Open the Trade Tab
The first step is to open the Trade tab in Think or Swim. Click on the Trade tab, which is located on the top menu bar. This will open the Trade tab, where you can view your open positions, closed positions, and pending orders.
Step 2: Locate the Open Position
After opening the Trade tab, you need to locate the open position that you want to close. Your open positions are listed on the left side of the Trade tab. You can view the details of each open position, such as the currency pair, trade size, entry price, current price, and profit/loss.
Step 3: Close the Trade
To close a forex trade in Think or Swim, right-click on the open position that you want to close. This will open a drop-down menu, where you can select the option ‘Create Close Order.’ Alternatively, you can click on the position, and a new window will open, where you can view the details of the open position.
Step 4: Review the Close Order
After selecting the ‘Create Close Order’ option, a new window will open, where you can review the details of the close order. The close order window will display the currency pair, trade size, entry price, current price, profit/loss, and the estimated close price.
Step 5: Choose the Close Order Type
In the close order window, you need to choose the type of close order that you want to use. There are two types of close orders that you can use in Think or Swim: Market Order and Limit Order.
Market Order: A market order is an order to buy or sell a currency pair at the current market price. If you choose a market order, your trade will be closed immediately at the current market price.
Limit Order: A limit order is an order to buy or sell a currency pair at a specific price or better. If you choose a limit order, you need to specify the price at which you want to close the trade. Think or Swim will execute the trade automatically when the market reaches your specified price.
Step 6: Submit the Close Order
After choosing the type of close order, you need to submit the order by clicking on the ‘Submit’ button. Once you submit the order, Think or Swim will execute the trade, and your open position will be closed.
Step 7: Review the Closed Position
After closing the trade, you can review the closed position in the ‘Closed Positions’ tab of the Trade tab. The closed position tab displays the details of your closed position, such as the currency pair, trade size, entry price, exit price, profit/loss, and the time of the trade.
In conclusion, closing a forex trade in Think or Swim is simple and straightforward. You need to open the Trade tab, locate the open position, create a close order, choose the type of close order, submit the order, and review the closed position. By following these steps, you can close your forex trades easily and efficiently. Remember to always manage your trades and use stop loss orders to minimize your losses and maximize your profits.
