Thinkorswim is a popular trading platform that offers a range of tools for traders to analyze and trade the financial markets. One of the essential tools that traders use when trading forex is the stop loss order. A stop loss order is an order placed by a trader to limit their potential losses on a trade. It is an essential tool that helps traders manage their risks and protect their trading capital.
In Thinkorswim, traders can easily set their stop loss orders by using the stop loss line. The stop loss line is a horizontal line that is placed on the chart at a specific price level. This line acts as a trigger for the stop loss order to be executed when the price reaches the level set by the trader.
To show the stop loss line in Thinkorswim, traders need to follow a few simple steps. First, they need to select the chart they want to trade on and then click on the “Add Study” button. From the drop-down menu, they need to select “Add Drawing” and then choose “Horizontal Line” from the list of drawing tools.
Once the horizontal line is selected, traders can then click on the chart where they want to place the stop loss line. They can then drag the line up or down to the desired price level. The price level can be set by double-clicking on the line and then entering the desired price in the “Value” field.
Another way to set the stop loss line in Thinkorswim is to use the “Order Entry” window. Traders can click on the “Buy or Sell” button on the chart to open the Order Entry window. From there, they can select the “Stop Loss” order type and enter the desired price level. The stop loss line will then be displayed on the chart at the price level entered.
Traders can also customize the stop loss line in Thinkorswim by changing its color, thickness, and style. To do this, they need to click on the line to select it and then click on the “Style” button in the properties panel. From there, they can choose the desired color, thickness, and style for the line.
In conclusion, the stop loss order is an essential tool for forex traders to manage their risks and protect their trading capital. Thinkorswim offers an easy way to set the stop loss line on the chart, either by using the drawing tools or the Order Entry window. Traders can customize the line to suit their preferences and trading style. By using the stop loss line effectively, traders can improve their trading performance and achieve better results in the forex market.