Buy or Sell Using optionXpress

Last modified 13:50, 20 Aug 2013

Buy or Sell Using optionsXpress

When a linked optionsXpress account has been setup within Your SOFTWARE, option trades and strategies can be traded directly into your optionsXpress brokerage account.

This feature allows seamless integration between your Options Analysis and placing a trade directly into the market for execution.

Note: Your optionsXpress account must be setup in order for the Buy and Sell features to work. See the section optionsXpress Brokerage Configuration.

The Buy and Sell commands can be accessed via the Action menu or Pop-Up menu throughout various Option screens within the system. The screens below show the Action and Pop-up menus from the Option Analysis screen.

brok_ox_actn_buy.png    brok_ox_popup_buy.png

If the Buy or Sell command is invoked when no underlying securities have been selected, the following dialog box will appear. In addition, if the selected underlying instrument is not part of the optionsXpress instruments to trade, the dialog will also appear.

brok_ox_not_supp.png

Buy Using optionsXpress

This command can be accessed through various parts of the system where the Buy command is active. The Buy command becomes active when the user has selected a particular option. The following dialog appears when accessed through an Options related screen. The example below is a Call option for the company IBM.

brok_ox_ordrfrm.png

An Order Entry ticket is opened in the Options tab consisting of the selected Call option. The number of Contracts defaults to 1 and can be changed by the user.

The Action field defaults to BTO (Buy To Open) when the Buy command is invoked. Other selections include BTC (Buy To Close), STO (Sell To Open) and STC (Sell To Close).

brok_ox_ordr_sel.png

For option trades, the Order Type defaults to Market. The Order Type field can also be set to Limit, Stop, and Stop Limit.

The Market $ defaults to the Ask price of the option. In the example above, the default price is set to $4.70.

The Expiry defaults to Day Order which means the order is only active for the current trading session. The Expiry field can also be set to Good Until Cancelled which keeps the trade active until the user actually cancels it.

Checking the All or None box means the order will only get executed if all the contracts specified can be filled. Leaving the box unchecked, means positions can be partially filled when trading multiple contracts.

When trading in the options market, it is typical to enter orders using the Limit order type. A simple Buy trade is usually executed at a Net Debit. The example below shows a Limit order with an entry price of $4.60 and number of Contracts set to 3.

brok_ox_buy_lmt_sel.png

Clicking on the Submit button will send the trade to the optionsXpress trading platform. If the trade was sent successfully, a message will be returned informing that the order was accepted by optionsXpress and a receipt number will issued as shown below. If the trade was unsuccessful, an error message will be returned explaining the reason why the trade failed to get sent to the optionsXpress trading platform.

brok_ox_buy_sccs.png

Users can double check that orders were sent correctly by opening the Broker Account View screen or logging into their optionsXpress web trading account and checking the Order Status page to see if the trade exists.

Sell Using optionsXpress

This command can be accessed through various parts of the system where the Sell command is active. The Sell command becomes active when the user has selected a particular option. The following dialog appears when accessed through an Options related screen. The example below is a Put option for the company IBM.

brok_ox_sel_ordr_frm.png

An Order Entry ticket is opened in the Options tab consisting of the selected Put option. The number of Contracts defaults to 1 and can be changed by the user.

The Action field defaults to STO (Sell To Open) when the Sell command is invoked. Other selections include BTO (Buy To Open), BTC (Buy To Close), and STC (Sell To Close).

brok_ox_sell_actn.png

For option trades, the Order Type defaults to Market. The Order Type field can also be set to Limit, Stop, and Stop Limit.

The Market $ defaults to the Ask price of the option. In the example above, the default price is set to $5.90.

The Expiry defaults to Day Order which means the order is only active for the current trading session. The Expiry field can also be set to Good Until Cancelled which keeps the trade active until the user actually cancels it.

Checking the All or None box means the order will only get executed if all the contracts specified can be filled. Leaving the box unchecked, means positions can be partially filled when trading multiple contracts.

Typically the Limit order type is used when trading in the options market. A simple Sell trade is usually executed at a Net Credit. The example below shows a Limit order with an entry price of $5.90 and number of Contracts set to 3.

brok_ox_sell_lmt.png

Clicking on the Submit button will send the trade to the optionsXpress trading platform. If the trade was sent successfully, a message will be returned informing that the order was accepted by optionsXpress and a receipt number will issued. If the trade was unsuccessful, an error message will be returned explaining the reason why the trade failed to get sent to the optionsXpress trading platform as shown below.

brok_ox_sell_err.png

Users can double check that orders were sent correctly by opening the Broker Account View screen or logging into their optionsXpress web trading account and checking the Order Status page to see if the trade exists.

 

Disclaimer

This information is provided by optionsXpress Australia Pty Ltd (ACN 085 258 822) the holder of an Australian Financial Services License (No: 246743) and this information is issued in accordance with the conditions of that License.   Investments in securities or derivatives involve risk. This information has been prepared without taking into account the investment objectives, financial situation or needs of any individual. Before making an investment decision, you should consider with or without the assistance of a professional advisor whether that decision is appropriate.

optionsXpress Australia Pty Limited (ACN 085 258 822 AFS Licence No: 246743) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Nothing here is an offer or solicitation of securities, products and services by Charles Schwab & Co., Inc. in any jurisdiction where their offer or sale is not qualified or exempt from registration.

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