How to exercise a call option TD Ameritrade: A Guide to Trading on the High-Tech TD Ameritrade Platform

Dipping your toes — and your wallet — into the deal? Depending on how deep you’re diving in, you’re bound to hear about thinkorswim.
OK, enough water puns. here’s the deal: While sleek startups like Robinhood, Coinbase, and Webull make headlines as they cater to an exploding population of investors matter to in the store commercialize, there are scores of people trading on the high-octane platform thinkorswim. Owned by TD Ameritrade, which has roots dating bet on to 1975, thinkorswim is known for its elaborate and customizable interface packed with research and analytics.
That tied of detail can be a utilitarian bit daunting, which is where we come in. here’s a comprehensive examination scout to everything you need to know about thinkorswim.

What is thinkorswim?

Thinkorswim is a trading platform with desktop, web, and mobile versions. The desktop interpretation is downloadable software, and there are thinkorswim fluid apps available for iPhone, Android, pill and smartwatch.

The different versions have unlike capabilities, but overall, you can trade stocks, reciprocal funds, ETFs ( exchange-traded funds ), options, futures, bonds, CDs ( certificates of deposit ), and forex ( foreign currency ) on thinkorswim.

How to exercise a call option TD Ameritrade?

Who uses thinkorswim?

TD Ameritrade has 11 million client accounts with over $ 1 trillion in assets .
JJ Kinahan, foreman marketplace strategist at TD Ameritrade, says thinkorswim is best for active traders and investors who are hoping to interact with the marketplace. But because the platform has such a wide image of technical foul features and deal tools, experienced traders can enjoy it just equally much as first-timers .
“ It is very detail. It allows you to trade at a very basic grade, or at the most complex degree you ’ d like to, ” he adds. “ For options — you can do something just like a simple shroud call. But on the early hand, if you want to do a deep-and-wide, four-month, four-strike, duplicate diagonal spread straddle-strangle swap, we ’ re your guys. ”

Is thinkorswim free?

According to its pricing page, TD Ameritrade doesn’t charge platform or data fees.
Thinkorswim price is as follows: It offers $ 0 commissions on online, U.S. exchange-listed stocks, American and Canadian ETFs, and options ( though options trades have a $ 0.65 per-contract fee ). over-the-counter stocks that aren’t listed on a U.S. exchange come with a $ 6.95 commission. Broker-assisted trades broadly cost $ 25 .

Is thinkorswim safe?

TD Ameritrade is both a brokerage firm and an investment adviser firm, according to the Financial Industry Regulatory Authority, or FINRA. It’s beside a member of the Securities Investor Protection Corporation, abbreviated SIPC, which protects customers against the loss of cash and securities up to $ 500,000 should the brokerage house firm fail .
TD Ameritrade besides has an asset protection guarantee; it vows to reimburse customers if they lose cash or securities because of fraud.

How to set up thinkorswim

Open a TD Ameritrade account and, for desktop, download the installer. A ace will appear and walk you through how to install thinkorswim, but if you have perturb, you can call customer defend .
not ready to start trading with your hard-earned cash merely however ? Try a newspaper money history. Thinkorswim ‘s wallpaper money feature, formally stylized as paperMoney, allows you to practice trade and familiarize yourself with the thinkorswim chopine without risk. Paper money comes with a rehearse margin bill and a commit IRA account with $ 100,000 in them. You can see your buying power and net liquidating value in your Account Info appliance, located in the upper left corner .
Kinahan says newspaper trading is designed to “ get you used to the commercialize. ” He encourages people to “ put on positions and actually see how they work. ”
( notice: When thinkorswim is in newspaper money mode, data is delayed by 20 minutes. The trade platform requires a fund account in order to access real-time market data. )
Whether you’re using newspaper or real number money in a live history, thinkorswim is full of gadgets and deal tools that allow you to develop and execute trading strategies. Among them are live News ( finance headlines pulled from versatile sources ) and Trader TV ( webcasts of video news and psychoanalysis ), both located on the left sidebar. You can set up a Watchlist here, american samoa well, that will display certain securities ‘ ticker symbols and grocery store data. You can customize Watchlists, but if it ‘s your first time on thinkorswim you may good want to play around with something standard like the Dow Jones Industrial Average .
You can add and remove widgets like the Calculator, Quick Chart, Scratch Pad or even Tetris to the sidebar by clicking the + and gear icons. Resize by clicking and dragging the bars at the lead and properly of the unlike sections.
On the correct are nine tabs : Monitor, Trade, Analyze, Scan, MarketWatch, Charts, Tools, Education, and Help. They’re self-explanatory — and chockablock of data.

Buying stock on thinkorswim

To buy stock in the background, pull up the Trade pill. You can type in the symbol on the All Products submarine pill and see the name, last trade price, profit or loss, whether it’s easy to borrow and where is the breed listed. Click Company Profile for tied more detail, including thinkorswim ‘s take on what drives the standard, evaluation highlights, sources of value, and key trends. (It’s besides adjustable, which is, in Kinahan’s opinion, “ one of the most powerful ” parts of thinkorswim)
bet on to the purchase summons. There are a couple of ways to do this, but one method acting is to find the Underlying section and click the necessitate monetary value, labeled Ask X. An order shape should come up at the bottomland. Enter how many shares you want, the price, what rate type you want, and how long you want it to be good for. then confirm and send. Read it over one more time, and relegate. It should show up on your Monitor page .
Trade executions are by and large fast : According to TD Ameritrade, the average time it takes for grocery store orders to be executed is 0.06 seconds .
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How to buy options on thinkorswim

To buy an option on background, again voyage to the Trade check .
Find the Option Chain section and type in a heart symbol. Calls are on the left, puts are on the proper. Select an exhalation date and click on the necessitate price ( Ask X ). then fill out the rate form, entering your craved measure and ordering type, locking in the price and clock in force, and confirm. Press commit. It should now appear on your Monitor page .
“ We let you be basic and allow you complexity in everything that we do, ” Kinahan says. “ If you want to tailor the order, you can tailor the regulate deoxyadenosine monophosphate much as you want to. ”

Charting on thinkorswim

Thinkorswim app screenshot

courtesy of TD Ameritrade
Thinkorswim is celebrated for its charts — Kinahan says the trade platform has more than 400 different charting patterns, “ so there ‘s got to be one that you can get in truth excited about. ”
The charts besides offer extensive customization. You can change the chart type, choosing from options like Candle, Bar, Line, Equivolume and Heikin Ashi. The nonpayment chart style is a candlestick, with a price column on the right and clock along the x-axis. rectangular bubbles display the lowest and highest prices in the clock frame ; icons indicate earnings announcements and store splits. Below, you ‘ll see a measure chart that shows daily bulk .
Charting enthusiasts can adjust the time human body, colors, cursor and even the background. You can click and drag to section off and soar in on a specific time frame of reference, make notes with drawings, add studies such as excitability indicators, and plowshare to your kernel ‘s content .

Need help with thinkorswim?

The explosion in concern in investing, trade strategies and stock trade over the past year — thanks to Robinhood, GameStop, Elon Musk and the like — means a set of cub investors have recently entered the stock marketplace. But you do n’t have to be an know trader to use thinkorswim. One of TD Ameritrade ‘s priorities is education, so you’re welcome even if this is your first prison term trade .
Kinahan says the thinkorswim platform wants people to understand risk right out of the gate. One of the mistakes new traders often make is looking at an opportunity and going starry-eyed at how much they can potentially gain, but traders with more experience tend to ask themselves, “ What can I sanely lose ? ” From there, they consider, “ Is what I can make a decent tradeoff for what I feel I can lose ? ”
“ We think we understand trade and try to help people avoid many of the mistakes that we made, ” Kinahan adds. “ And that ’ s why we teach that first. ”
On the Analyze check, there ‘s a Probability Analysis joyride that can help you determine whether a stock will move in the future. ( You can besides do this by expanding your charts. ) active traders who do have experience — and the desire to go deeper into the thinkorswim world — can use the programming language thinkScript to make their own studies, deal strategies, alerts and more .
Need more info ?
If you click on the Education yellow journalism, thinkorswim will take you to its Learning Center, which features guides on everything from platform layout to entrance and exit strategies to the Forex Trader interface. The Learning Center besides has webcast tutorials on how to trade futures and how to make use of the Calendar, an interface that includes earnings reports, conference calls and the alike. And, of course, off-site, there are YouTube tutorials for pretty much any thinkorswim question you can think of .
Kinahan says use of thinkorswim ‘s official Education yellow journalism was up 300 % last year. The No. 1 television was a tutorial about stock fundamental analysis .
“ I think that retail traders weren ’ thymine given about enough recognition for the amount of time they spent on education, ” he says. “ People were not lone trading but want [ ed ] to learn how to understand better. ”
We ‘re biased, but we ‘d say reading this steer is a good startle .

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