How to Set Stop Loss on Thinkorswim App
Setting a stop loss is an essential risk management tool for traders. It helps protect against excessive losses by automatically closing a position when the price reaches a predetermined level. If you are using the Thinkorswim app for trading, here is a step-by-step guide on how to set stop loss orders.
1. Open the Thinkorswim app and log in to your account.
2. Find the position you want to set a stop loss for in your watchlist or account summary.
3. Click on the position to bring up the order ticket.
4. On the order ticket, locate the “Order type” dropdown menu and select “Stop Market” or “Stop Limit” as per your preference.
5. Enter the stop price at which you want the position to be closed. This should be below the current market price for a stop loss sell order or above the market price for a stop loss buy order.
6. Specify the quantity of shares or contracts you want to apply the stop loss to.
7. Review the order details and click on the “Confirm and Send” button to submit the stop loss order.
Frequently Asked Questions (FAQs)
Q1. Can I set a stop loss order for options on Thinkorswim?
Yes, you can set stop loss orders for options just like you would for stocks or other securities. Simply follow the same steps mentioned above.
Q2. Can I set a trailing stop loss on Thinkorswim?
Yes, Thinkorswim allows you to set trailing stop loss orders. Instead of selecting “Stop Market” or “Stop Limit” in the order type dropdown, choose “Trailing Stop” or “Trailing Stop Limit” and set the desired trailing amount.
Q3. Can I modify or cancel a stop loss order on Thinkorswim?
Yes, you can modify or cancel a stop loss order on Thinkorswim. Simply locate the order in the order history tab, right-click on it, and select the appropriate option from the menu.
Q4. Can I set a stop loss order outside of regular trading hours?
Yes, you can set stop loss orders outside of regular trading hours, but they will only be triggered when the market is open.
Q5. How can I check the status of my stop loss order?
You can check the status of your stop loss order by going to the order history tab on Thinkorswim. It will show whether the order is open, filled, or canceled.
Q6. Can I set a stop loss order as a market order?
Yes, you can set a stop loss order as a market order by selecting “Stop Market” in the order type dropdown.
Q7. Are there any fees or commissions for setting stop loss orders on Thinkorswim?
Thinkorswim does not charge any additional fees or commissions for setting stop loss orders. The standard trading fees and commissions apply.
In conclusion, setting stop loss orders on the Thinkorswim app is a straightforward process that can help protect your trading positions. By following the steps outlined above and understanding the FAQs, you can effectively manage your risk and make informed trading decisions.