Placing Trade Orders on Interactive brokers Tutorial

all right so hi guys in this video tutorial i'll be showing you how to place option trades using the interactive broker's platform so the first thing is you want to set up your uh dashboard with the appropriate uh windows right so on my left i've got what is known as the portfolio window okay and on the bottom i've got my order entry window on the top right i've got charts which i hardly use because i tend to use charts on trading view or thing called swim but i just put it there below that i've got the orders and activity window and finally at the bottom i've got the option chain window so you can configure it any way you like this is just my preference okay so how do you create a layout yeah so on the bottom right you can see a plus sign okay so you can create many tabs now i already have a dashboard so i'm just going to create another one for you to see i'm going to click the plus sign over here and create and i'm going to call it dashboard demo okay click create and what i then do is i will put in the windows which i want so what's the first window i want first thing is i want a portfolio window right so start here click portfolio right so click on that and it appears over there right now i already have a lot of existing trades so you can see that all my existing trades are popping up if you have no existing trades you'll be all blank okay and then you can size it any way you want you can make it full half whatever so we're just going to leave it there for now okay now on the bottom over here um we're going to put in the order entry window right so click on that order entry so this is where we enter our orders in so we're gonna put it down there and again you can size it any way you want i'm gonna size it to roughly half and i'm gonna pull this down okay and pull that up okay so on the right what we have we have the charts over here so new window chart and the charts appear okay you can size it any way you want and over here i've got the uh orders window right so once you place an order using this order entry the order will appear here click on that um order entry order orders okay we don't need that much space for this and finally the one at the bottom would be our option chain so new window and look for option chain right over there here we go so once you have um sized it okay um you can then uh click lock layout so the layout is locked right now there we go right so it looks exactly like mine ta-da okay so over here on my left you can see these are my existing positions right all the stocks that i have this is the current market price this is the price which i bought it at the average cost price my unrealized profits the number of shares the position and the market value okay now these are the columns that i have set for myself you can always change the columns change the sequence or add new columns delete certain columns right so i won't go into that for now but just to show you that everything is linked up so if i click on for example cme what happens immediately when i click on cme the chart will appear over here so it's all connected right at the same time on the bottom right the option chain of cme will populate as well and on the bottom left you can see uh the order entry for cme appears as well so it's it's all connected it's really cool now just in case you don't know how to put a stock trade in the first place let me just show you right so on the bottom left um und under the order entry window say you want to place a trade on um uh beyond meat for example right something that i won't buy but i'm just giving an example so over here just click on um put in the ticker symbol v y and d for example all right oh let's put something else let's put disney dis right so put disney enter and of course you can choose trading the stock futures options cfds all right so we're gonna choose stock over here now currently the market's closed so i'm just gonna place an order and cancel it uh before the market opens right okay so as you put in disney all right right now there are no prices that appear because again the market's closed but you can see from the chart that the last price was 127.4 if you're just buying the stock for investment first thing is to click buy on the left the quantity whatever quantity that you want can buy 10 shares can buy one share right whatever number of shares and if you're buying for investment you use a limit order and just put the limit price so in this case i put a limit price of say one to seven dollars okay and again you can choose a day order or good to cancel order okay so say i put a day order and i click submit so once you put in the order what happens it will appear over here in the order entry window until it gets filled right so it has to turn green when it turns green it means the order is live and once it's filled it will say the price it fills at right which means it's transacted now before it gets filled you can always cancel the order type cancel or you can always amend it right you can always change the price to one two six and update it or you can cancel it okay now if you're placing a trade or if your place in order for trade then it'd be a bit different right so say i would like to put a trade for disney with a stop loss and a profit target okay so again i'm going to click buy quantity again i could put you know 10 shares or depending on my position sizing and again if you're entering for trade you'll be using a buy stop limit order okay instead of a buy limit order you'll be a buy stop limit order okay so click this for more so we use a stop limit order so you've got two prices you've got the stock price and the limit price all right uh so say the stock price is one two eight and the limit price is say one two eight point five zero okay so at one to eight you trigger the trade and you'll buy in a market price but not more than 1 to 8.5 now if it is a trade we put a stop loss and a profit target as well so to put in the stock loss and profit target we click on advanced orders here and we choose attach stop loss or profit target so again you can put your stop loss at say one two whatever i'm just making it up right one two five and profit target at say um one three five and remember that for your stop loss and profit target it has to always be good to cancel and then you submit the entire order read it click accept and there you go okay so you can see the entire order is there disney all right the one tweet is a stock price and then you have got your profit target at one three five stop loss at uh sorry you can see there's a typo it should not be one two oh five right that's crazy so um it should be uh say one 120 okay there we go and then you update that right so always double check your orders okay and again anytime you can amend it by clicking on clicking on it amending it or you can just cancel cancel everything there you go right so that's how you place a order for a stock all right so next how do you place an options tray so first i'll show you how to place a single option trade and then we will look at multiple lakes okay so for a single trade it could be selling a covered call or selling a cash secured put for example right so say i like to sell a covered call on ashr um yeah ashr okay so first remember before you sell a covered call you need to have 100 shares so i've got 2 000 shares i could sell a lot of calls right but i'm just going to sell one call or pretend do because the market is closed all right and show you how to do it right so i'm gonna click on ashr and again once you click on that particular stock that you have the option chain will appear over here now in the option chain first thing is to choose the expiry date of the option you want to buy or sell so for example for covered calls i usually sell 30 days expiration so that's 5 days 12 days 19 days 26 days click for more um so if i go for september 25th that will be 33 days so let's say i like to sell this uh expiry date so again if i'm selling a call i look at the left selling a put i look at the right okay now the thing to check over here would be uh sometimes uh or rather you click on all strikes and sometimes you may by default only see 10 strike prices so you can always click and say okay i want to see uh 20 strike prices or 50 strike prices or all the strike prices okay so let's leave it to 50 strike prices and over here you can click uh all so that it selects all the different uh option series right close okay so you can see that in the option chain i've got various columns the open interest delta bid price mark price ask price so i have put in these columns now you can add columns you can delete columns right because for me i think uh i don't need more columns right i just need the most important one which is delta bit mark and ask now if you like to add in a column just right click on this right click and you can see insert column and you can insert anything you want you can insert theta gamma or any other greeks or whatever you want you can insert in there now if you don't have delta you need delta right so delta would be under greeks select uh delta portfolio uh portfolio delta over there right so make sure that you have got uh the delta okay over there okay so the delta should appear over there okay so if i'm selling um a cover called ashr okay i will choose the strike price that is uh normally at a delta of 40 to 50 okay so i'm going to choose either the 44 delta or the 37 delta it's up to me right so if i want to sell the 44 delta i'll be selling the 35 strike so to sell we click bid to buy we click ah so if you want to sell this covered call i click on that and you can see the order appears over there all right so sell the ashr 35 call okay and again you have to click sell over here okay again one quantity one represents one contract one contract is 100 shares okay and again you can put in the price that you want depending on the bid and us you can bargain so usually when you sell you want to sell as high as possible when you want to buy you want to buy as low as possible so usually i would start by selling at the highest price and lower it from there until it gets filled so i'll sell at say 90 cents for example on 91 cents probably i won't get filled right and then i have to lower it lower it to 90 cents 89 cents 85 cents till i get filled so i click submit okay okay all right so there we are that's my call ready to be filled once the market opens that's how you sell a call okay a covered call because i own the shares i sell a call it's a covered call right and again i can always cancel it all right so that's how you place a single option order now the tricky part is how do you place options with multiple legs right so for example two legs or four-legged options so some of you may not be familiar right so let's imagine i like to put in um i like to put in a call spread on ba a call spread so a call spread would be uh buy a call and then sell a call at a higher strike price okay so let's imagine i'm bullish on ba i think ba is going to go up right ba boeing right click on going over here for example and i like to buy a call and sell another call so i'm gonna buy a debit spread okay so first again i gotta choose the date to expiration let's imagine i choose again on september 25th now whenever i'm creating a combination of two or more options at the same time multiple links i will use the strategy builder so i click on switch on the strategy builder and you can see it comes up here this gets a bit compressed right so that's a bit all right so i can always drag this down right okay so what i'm going to do is i'm going to buy a call and sell another another call okay so right now ba is at 167.8 i'm going to buy the 168 call and i'm going to sell the 178 call okay so once i've got the strategy builder on i can just add all the links all right so go to 168 first now there's no 168 there's only 170 right so i'll buy the 170 call so for buy i click ask click on ask that buy buy the 170 call and then i scroll down and i sell the 180 call so for 180 i sell sell would be bid there we go okay so you can see that i'm gonna buy the 170 call and sell the 180 call so i'm gonna enter it as a combo all right there we go so you scroll below there you can see uh they will quote you a price for the combination and then you can always put whatever price you want and again you can bargain uh the best price if you're buying you know buy the lowest price right so try to buy at say 290. okay and again one quantity one contract would be 100 shares okay and usually i use a limit order for options we always use limit orders never use stock orders for options always use limit orders and once you're ready on the right over there uh trouble is you can't see but it says submit on the right right i know it's a bit um squeezed if you will okay let me tell you what let me let me pull this here yeah that's the problem with this you have to okay i tell you i'm gonna unlock this pull this to the left pull this there all right can you see the word submit there ah there it is submit button right click submit accept okay and there we have the orders over there okay so you can see that you place the order as a combo as a bull spread right so buy the 170 call and sell the 180 call all right and again you can always click and edit the price you can always change the price to make it lower if you can't get filled or sorry higher if you can't get filled and update it and you can always cancel it as well right so that's how you enter uh option strategy with two legs right and if you want to enter with four legs is the same thing right you can enter up to four legs at the same time so for four legs for example let's let's just do a four legged one just for the heck of it just to show you so this is not a real strategy right that's just sure you can add four legs right so for example um i'm gonna buy the 170 okay that appears then i'm gonna buy the [Music] 175 i'm gonna sell the uh 170 put and sell the 175 put all right now this is not a proper strategy but i'm just showing you that you can add up to four licks and buy four options at the same time in a combination okay and again you can then put in the price that you want to buy the combo at on the right right again you know it gets chopped off so sometimes i've got to move this right submit order and you'll be in the order window which again you can amend and you can cancel and stuff like that right so that's it so that's how you place uh option orders using the interactive brokers platform okay so next i'm going to show you how to place your orders through the mobile app and the mobile app is actually a lot easier to use okay so over here is the mobile app that i've got open for another account of mine so first how do you place a stock trade right on the bottom right click on more click on order ticket and say you'd like to place an order for spotify right example spot click on that and again you can trade the stock options warrants cfds or you can look at the strategy builder right so we're going to just place a stop trade first click on stop all right now again if you're just buying for investment just click on buy on the bottom right and this will pop up right okay so the first thing is to put in the quantity how many shares you want to buy so again for example you're gonna buy 10 shares okay and the next thing would be to put in the order type if it's just buying for investment use a limit order put in the limit price so right now the market's closed but the last price was 271 so maybe i may want to put a limit order of 2 7 t for example so it will only buy at 270 or lower and again i can either choose a day order or good to cancel order okay usually i choose a good to cancel order if i just want it to last for a day then i'll just put a date order right that's it and then once you're done at the bottom here just click submit to buy so submit and click done and the order is in there we are orders it if you like to check the order you can also go to um more go to orders and trades over here and you can see the order over there right so all your orders will be here until they get filled so once they get filled you can then look at trades it will appear under trade so you can see that there are no trades today but you can see yesterday if i click on yesterday right for some reason it's not coming up yesterday uh these were my trades and on friday you can see these are my trades on friday right so i do a lot of trading every day as you can see right and on thursday uh you can see so you can see all your trades going back a few days right okay good right so today there are no trades but right now i've got an open order and again i can always amend it by clicking on it and i can always modify the order click modify change the numbers and i can change it anytime if i want to cancel it i click on it and i click cancel that's it it's gone okay so now i'm going to show you how to place um for a short term trade so the difference when you place more short term trade you've got a stock loss and a profit target right so it's a bit different so let's imagine now i like to place a short term trade on disney alright so once again bottom right click on more over here click order ticket put in the ticker symbol disney diss choose the right one okay and uh click buy so again if it is a short term trade i will use a stop limit order like what you've learned in the professional trading course right so again what's my quantity i have to put in the quantity i want say i like to put in 50 shares depending on my position sizing under order type i will choose um stop limit right so for short term trades we always use a stop limit order and you've got two numbers the stock price and the limit price so as of friday the closing price was one two seven point four i only want to buy it if it goes up to 128 so under the stock price i'm gonna put 128 because remember that in trading you always want to buy higher than the current price but in investing you want to buy lower than the current price so remember that right big difference yeah so at 128 i like to buy the stock but not more than say 128.5 for example so i've got my stock price i've got my limit price this is the stock limit order if i want to attach a profit target or a stop loss i can click attach order here and attach a stop loss or a bracket which is both stop loss and profit target so i'm gonna click on bracket okay so i put my profit target at say one three five and my stop loss at say 125 and remember that for the profit target and stop loss it has to be it has to be a good to cancel order always good to cancel for stop loss and profit target yeah it's all there right so double check your numbers right so buy it one two eight not more than 128.50 stop loss 125 profit target 135. once you have double checked slide to submit your order slide submit done so you can see your order is over there okay now anytime you can click on the order and you can amend it you can modify it or you can cancel it right so again you can see it from here or you can again click on this left arrow go back to your more go to orders and trades and there it is right okay so these are all the pending orders ready to be triggered once the market opens now if i don't want it to be triggered i can click on it and i can cancel it here yep cancel order that cancel right this one like to cancel it as well now sometimes over the weekend you may have problem canceling it so i have to remember to cancel it once the market opens because i don't want these trades right it's not part of my strategy okay yeah for some reason i can't cancel it right now no worries okay just remember tomorrow okay so that's how you place a stock order okay so now i'm going to show you how i place option trades all right so you can see right now in my portfolio i've got quite a number of option trades um so for example this is a cash secured put it's a covered call cash secured put uh cash output cash output so these are all single option trades okay so how do i place a single option trade like a covered call or a cash output so for example let's say i like to put a cash secured put on cme so currently cme is at 173 i like to sell a put at say 170 all right so what i do is i will click on cme um or what i can do i can start from the beginning i'm gonna click on more uh order ticket and over here type cme okay now if i like to put an options tray you may think hey put options right not really what i find is it it's easier to put stock first all right this is a little trick right so click on stop first and then click on options there is a difference right click on options okay so then you get the option chain so again i like to sell a put on cme i have to select the expiry date so say i like to select the 25th of september expiry date which is about 30 days from now and i like to sell a put at 170 all right so 170 is a put seller put so click ask to buy click bid to sell so if i want to sell a put i'm going to click on this uh this one over here all right so click on this oops clicked on the wrong one done it okay let me do that again all right since i clicked on this by mistake let's just use this right so i clicked on this 172.5 and i click on sell sell the put okay so sell the 107 2.5 put expiring 25th september and this is the last price of the put now markets close right now so you can see the bid and us is very different very wide apart but once the market opens it will be closer together okay now i scroll down and i'll put in the price i want to sell it again whenever i sell i want to sell at the highest price if i want to buy i buy at the lowest price so i always try my luck by selling at the highest price so you can see the the bid ask is 390 to 4.90 so i'm going to try my luck to sell at 4.90 right just try probably won't get it right or i can put 450 for example somewhere in between right so i'm going to put 450 over here so i'm going to sell this put option uh which is the 172.5 strike price and i'm going to sell the put option for a credit or premium of 450 all right so submit to sell yes i am sure yes i am sure done okay so right now i've placed the order to sell that put okay so double check the order uh let's go back let's go back click on more again look at my orders right always go to orders to see if is your order there see my order's there right so my order to sell cme put for 450 uh premium right now again if i can't get the order filled i may have to lower the price till i get filled right so i can always modify it right click on this again click on this and click modify all right and i say okay i can't get f 450 i'm too greedy maybe 440 right so i keep reducing it 440 for 30. i keep reducing it till i get filled all right and submit and let's see if i get filled now markets close obviously i won't get filled right but this is what i do uh when the market's open okay and again any time i can just cancel the order if i've changed my mind you know i want i don't want to sell the put no more right so order cancel got it okay now finally i'm going to show you how i put in option trades where there are more than one options at the same time so if i do a call spread or put spread there'll be two options in an order right two-legged option or even a four-legged option combo so how do we do that how do we do multiple lake option combos really simple so let's imagine now i like to sell uh call spread on disney right so i like to sorry i like to buy a call spread on disney okay so buying a call spread means you're gonna buy a call and sell another call okay so say i like to buy a call spread on disney so i'm gonna go to again over here more or the ticket um again i keep choosing disney right that's okay let's use this thing right now again even though i want to place an options trade i click on stop first i don't know why it's just the way it is then i click on options here okay now if i want to place more than one option in the combo i have to click on strategy builder can you see over the bottom okay so switch on the strategy builder and now i can enter multiple links all right so again i'm going to choose expiry of 25th september let's choose it expiry okay and let's imagine i like to uh buy a call spread a blue call spread right so i could buy the 128 call and sell the 138 call all right so i go to 128 right 128 so i'm gonna click buy buy would be us sell will be bid click buy buy 128 and click on this little thing over there buy so can see this comes out all right and at the same time i'm gonna sell the 138 call so scroll down go to 138 now the numbers may take a while to come out it's a weekend all right to save time okay fine so i'm gonna sell the 138 right sell this one click so there you go right two legs right so buy one two eight sell one three eight so this is a combination known as a boot call spread and again i can add in the third leg and then the fourth leg can add in multiple legs once you're happy you can see the combo and i put order okay and double check that this combo is what you want buy one one two a call sell one one trade call right once you're happy that you can see the current prices being quoted again markets closed so there's a big spread when a market opens you'll be tighter right putting the quantity again one is one contract one contract it will be a hundred shares okay so you can always change the quantity if you want to two or whatever it is right and put in the price you want to buy at again if you're buying it's uh lower the better right if you're selling the higher the better right so all right usually they would always give you a bad price so you always want to put a lower price than what they they suggest right so you can see you know 261 to 327. i'm gonna bargain to the lower end so maybe i put 270 and then if i don't get it i'll then raise it to 280 to 90 till it gets filled right so 270 and then i will submit the order yes stop asking me i'm not a baby i know what i want i know what i'm doing okay so orders in again i'm going to view my order so go to the left go to more again go to orders and trades over here there we are that's my disney combo which i just placed the order at 270. yeah and when the market's open if i don't get filled and you know i want to get it filled i would have to offer a higher price right right so if i put 270 i can't get it i may have to put 280 to 90 till i get filled all right so in options you always have to bargain all right you always have to bargain and change the order till you get filled so there goes so i'm going to cancel this order right now i don't want it i'm going to click cancel all right done all right so once your order has been filled and it's you have the open position um right under portfolio or rather on the so-called the home page if you will or rather sorry on the portfolio page if you click portfolio over here you'll be able to see in your portfolio right so you can see in my portfolio i've got various option trades i've got this amazon bull spread which is this is actually a credit spread right on amazon i've got another uh credit spread on octa spot right i've got a vix combo as well so like this is a credit spread on spotify it's a credit spread and if i click on that right you can see the links right so this is a credit spread so i sell the 220 put and i buy the 210 put for a credit right so we call that a credit spread right there we go all right so that concludes this lesson on uh using the interactive brokers trading workstation as well as the mobile app hope you enjoyed it

Channel: Adam Khoo

Views: 85,043

Keywords: adam khoo, adamkhoowealth1, wealthacademySG, stock trading, stock investing, technical analysis, ETFs, exchange traded funds, CFDs, wealth academy, AKLTG, interactive brokers tutorial, interactive brokers placing orders, placing orders, interactive brokers TWS

Id: XSXj3nSWCvg

Length: 40min 56sec (2456 seconds)

Published: Mon Aug 24 2020