Interactive Brokers Trader Workstation (TWS) is a powerful trading platform that offers advanced features for trading a wide range of financial instruments, including forex. Forex trading on TWS is available through the IB Forex platform, which provides access to the interbank forex market and offers competitive pricing and low commissions. In this article, we will explain how to use Interactive Brokers Trader Workstation for paper forex trading.
Step 1: Open a paper trading account
The first step to using Interactive Brokers Trader Workstation for paper forex trading is to open a paper trading account. A paper trading account is a simulated trading account that allows you to practice trading without risking real money. To open a paper trading account with Interactive Brokers, follow these steps:
1. Go to the Interactive Brokers website and click on the “Open Account” button.
2. Select the “Individual” account type and fill out the application form.
3. Choose the “Paper Trading” option when prompted to select an account type.
4. Follow the instructions to complete the account opening process.
Once your paper trading account is open, you will receive login credentials that you can use to access the Interactive Brokers Trader Workstation.
Step 2: Download and install the Trader Workstation
To use the Interactive Brokers Trader Workstation for paper forex trading, you will need to download and install the platform on your computer. Here’s how to do it:
1. Go to the Interactive Brokers website and click on the “Trader Workstation” link at the top of the page.
2. Click on the “Download” button to download the platform installer.
3. Run the installer and follow the instructions to install the platform on your computer.
Once the Trader Workstation is installed, you can launch it and log in using your paper trading account credentials.
Step 3: Configure the platform
Before you start forex trading on the Interactive Brokers Trader Workstation, you should configure the platform to suit your trading style and preferences. Here are some things you might want to do:
1. Set up your watchlists: The Trader Workstation allows you to create multiple watchlists to monitor different currency pairs. To create a watchlist, click on the “Watchlist” tab and select “New Watchlist.”
2. Customize your workspace: The Trader Workstation is highly customizable, allowing you to arrange the various panels and windows to suit your needs. To customize your workspace, click on the “Layout” menu and select “Customize.”
3. Set up order presets: The Trader Workstation allows you to create order presets that can save you time and reduce the risk of errors when placing trades. To set up order presets, click on the “Settings” icon and select “Global Configuration,” then click on the “Order Presets” tab.
Step 4: Place forex trades
Once your Interactive Brokers Trader Workstation is set up and configured, you can start placing forex trades. Here’s how to do it:
1. Select a currency pair: To place a forex trade, you first need to select a currency pair to trade. You can do this by clicking on the “Forex” tab in the TWS market navigator and selecting the currency pair you want to trade.
2. Choose your trade size: Once you have selected a currency pair, you can choose your trade size by entering the number of units you want to trade in the “Quantity” field.
3. Place your order: To place your forex trade, click on the “Buy” or “Sell” button, depending on whether you want to go long or short on the currency pair. You can choose to place a market order, limit order, or stop order, depending on your trading strategy.
Conclusion:
Using Interactive Brokers Trader Workstation for paper forex trading is a great way to practice trading without risking real money. The platform provides access to the interbank forex market and offers advanced features such as customizable workspaces and order presets. By following the steps outlined in this article, you can set up the Trader Workstation and start placing forex trades in no time. Remember to always practice good risk management and trade with a plan. Happy trading!
