ScaleTrader Orders

ScaleTrader can be used with limit or relative orders, and is designed to help prevent larger sized trades from being subject to increasingly deteriorating prices by scaling your order into smaller, incrementally priced components based on user-specified price and size instructions. In addition to scaling your order, you can also define a profit offset amount which instructs TWS to automatically submit opposite-side profit taking orders against the individual components of the original order.

Use ScaleTrader

1. Create an order (click the Ask Price to create a BUY order; click the Bid Price to create a Sell order).

2. In the Type field, select Lmt or Rel.

3. Set the scale attributes:

1. Scale Init. - (Initial Component Size) This value defines the size of the first, or initial, order component. For example, if you submit a 10,000 share order with a  Scale Init value of 1000, the first component will be for 1000 shares. (If you elect NOT to enter a value in the Scale Sub field, this value will be used on the remainder of your order. In this example, your 10,000 share order would include 1000 shares in each of its 10 components.).

2. Scale Sub - (Subsequent Component Size) Optional field used in conjunction with the Scale Init field, this value defines the order size of the subsequent scale order components. If left blank, all order components will be sized based on the Scale Init value.

3. Scale Incr. - (Price Increment) This amount is used to calculate the per-unit price of each component in the scale ladder. Note that the price increment cannot be negative.

4. Scale Profit Offset - A value in this field instructs TWS to submit profit-taking orders, and defines the minimum amount of profitability you will accept to exit a position. ScaleTrader will submit an opposite-side profit order against the original order, using the limit price of the parent component plus/minus the profit offset. For example, if you submit a 10,000 share BUY limit order at $65.00 with a component size of 1000, and enter $15.00 as the Scale Profit Offset, as soon as the first component executes, TWS will submit a 1000 share SELL limit order at $80.00. Use the Scale tab on the Order Ticket to set advanced profit order instructions.

3. If necessary, modify the Lmt Price which is used as the starting price for the series of order components.

4. Transmit the order.

You can monitor the progress of your scale orders by right-clicking on the order line and selecting View Scale Progress.

For more information on scale orders, visit the Order Types information page.

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