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StreetSmart Pro® User Manual

1. Column Name Description Symbol Stock option or index symbol This column cannot be removed or moved within the Watch List Chg Close Percentage change from last close price to current price Chg Open Percentage change from open price to current price Chg Prev Percentage change from the previous day s close to the Close current price 52 Wk High Highest price reached in the past 52 weeks not including today 52 Wk Low Lowest price reached in the past 52 weeks not including today Alerts Displays the name of any alerts you have activated for the stock 298 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Ask Market Data Tools Current ask price Ask Size Number of shares at the inside ask Avg Volume 1 month Average of the security s volume for the past month Avg Volume 5 day Average of the security s volume for the past five days Avg Volume 20 day Average of the security s volume for the past 20 days Avg Volume 6 months Average of the security s volume for the past six months Avg Volume Average of the security s volume for the year to date YTD Bid Current bid price Bid Size Number of shares at the inside bid Chg Close Change from the last close price to current price Chg Open Change from open price to current price Chg Prev Close Change from the previous day s close pr
2. Limit Price 1 Enter the symbol in the symbol field and press Enter on the keyboard 2 Change the quantity using the arrow buttons or the following keyboard keys e Up Down keys to increase or decrease in increments of 500 e Left Right keys to increase or decrease in increments of 100 e Shift Up Down keys to increase or decrease by 10 e Shift Left Right keys to increase or decrease by 1 e Or click in the quantity field and type the number of shares or contracts TIP You can also click the button and enter a dollar value to see how many shares you could trade for that amount 3 Choose whether to place a Limit Market or Trailing Stop Order Type If placing a Limit order type click on a price level in the Level II area of the Trading window to set the price 5 If placing a Trailing Stop order enter the number of points or the percentage for the trailing stop 6 If necessary change the Price using the arrow buttons or click in the Price field and use the following keyboard commands e Up Down keys to increase or decrease by 05 e Left Right keys to increase or decrease by 01 e Shift Up Down keys to increase or decrease by 005 7 Choose the Order Route and Time in Force you wish to use from the drop down lists if not already done 8 Click Buy Sell or Short from the Action Buttons 9 If Order Verification is enabled in the Trading window Settings gt General window you will be asked to verify th
3. 76 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading The security you are buying is not marginable Security cannot be bought on margin or sold short Please Note The margin requirement for your Maintenance margin of the symbol is XX security is something other than the standard 30 The price you have entered is below the last Limit price is away from available quote If you believe this condition current price should not exist please re examine your order for any possible errors The price you have entered is above the last Limit price is away from available quote If you believe this condition current price should not exist please re examine your order for any possible errors The order you have requested Buy at a Limit of Limit price is away from LIMIT_PRICE is significantly above this current price security s closing price If you believe this condition should not exist please re examine your order for any possible errors Extended hours session The order you have requested Sell or Sell Short Limit price is away from at a Limit of LIMIT_PRICE is significantly below current price this security s closing price If you believe this condition should not exist please re examine your order for any possible errors Extended hours session Please note A special maintenance requirement Stock prices below 3 00 of 100 is required for this purchase because require 100
4. YTD Close Perf Description Sorting Sector Industry S ub industry MV Enable Sorting Auto Sorting Long Names Abbreviations Set Default Cancel Enable Sorting When checked you can simply click on any column header to sort by that column Auto Sorting When checked the sort order will change in real time as new data comes through For example if you were sorting by the Total Volume column and Auto Sorting was checked the sort order of the watch list would change as volumes changed Long Names Abbreviations Select which format you would like for displaying the Sector Industry and Sub Industry columns Sector Column Descriptions Name Shows Sectors Industries Sub industries and finally all stocks within each sub industry Open Total amount the stock has gained declined since market open Close Total amount the stock has gained declined since yesterday s close Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 329 StreetSmart Pro User Manual e Open Percentage of change from open price to current price e Close Percentage of change from close price to current price e Total Volume Total cumulative volume for the day e Total Market Capitalization The total market value of all of a company s outstanding securities e 5 Day Close Perf o Difference between the Close from 5 days ago and the Current Price expressed as a percentage e 20
5. 156 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts day or interval was higher than today s opening price Red indicates the security s closing last price for the day or interval was less than today s opening price Gray indicates the security s closing last price for the day or interval was equal to today s opening price e The top and bottom of the line behind it represent the high and low for the day period Outline Candlesticks e Check or uncheck your preference to have the Candlesticks outlined or not This is only available when candlestick is selected as graph style Opening price for that day or interval Green High price for that day or interval Red Low price for that day or interval Blue Closing last price for that day or interval Line Graph e When selected you can choose which lines to view Open High Low or Close Point amp Figure Charts When selected you can choose how to display the following items for Point amp Figure e Box size from 0 05 to 500 e Using either High Low or Close e Reversal from 1 to 5 If applying an overlay of a second symbol the style is set here Style Graph Line This gray field is adjustable with the up or down arrows to the Width right of the field The higher the number the bolder the line in the chart NOTE A higher setting may cause distortion to the graph Study Line This gray field is adjustable w
6. 6 When you have finished click OK 7 You can save your Watch List by clicking File gt Save Watch List As then selecting a Watch List Name How do I customize my Watch Lists To customize the column headings in your Watch Lists 404 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Right click on the column you want to change 2 From the pull down menu select the new value of the by clicking on the name 3 To adjust the number of columns and headings all at once click on Settings gt Columns For a detailed description of each column see Watch Lists How do I add a symbol to my Watch List To add a symbol e Right click in the Watch List window and select Add Symbol e Press the Insert key on your keyboard OR e From the Watch List window click on Settings gt Symbol List How do I look up symbols for my Watch List To perform a symbol lookup e From the Main Menu click Tools gt Symbol Lookup e Or click the Symbol Lookup icon Ain the Toolbar How many symbols can I put in a Watch List Each Watch List can display up to 100 symbols and you can create as many Watch Lists as you like You are only limited to the amount of disk space on your computer How do I retrieve a Watch List 1 Go to the menu bar in the Watch List window and choose File gt Load Watch List 2 Double click on your preferred Watch List or choose the Open button to display the Watc
7. Default cancellation time 180 seconds Trading Hours 7 00 a m to 8 00 p m ET for Limit orders Trading Hours 9 30 a m to 4 00 p m ET for Market orders All ARCA limit orders will be canceled after the close at 8 00 p m ET ARCA Order Routing Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 97 StreetSmart Pro User Manual Order Types Description e Marketable Limit Orders Matched with the ARCA book or preferenced to other market participants using ARCA s SmartBook logic The order price may be improved if a better price appears after your order has been routed by ARCA Non Marketable Limit Orders The order is posted to the ARCA book ARCA posts the best bid and offer in their book to Level II MMID ARCA NOTE Your price may not cross or lock the market These are matched with the ARCA book if there is volume at the inside If ARCA is not at the inside the order is routed using ARCA s SmartBook logic Any residual will not be routed to the next price level until all quotes at the current best bid or offer are exhausted e Criteria for routing orders fill history time and size shown e Market orders are not accepted after 3 59 p m ET Market Peg Pegs the order price to the ask if buying or to the bid if selling meaning the order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price Orders may be adjusted a
8. My Recent My Pictures Documents Old My Documents E Templates Desktop My Documents r a My Computer a a My Network File name StreetSmartProD omL2_elcap exe Places Save as type Application hd Cancel Zi 30 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started 3 The status of your download is displayed and when it is finished click Open to run the installation program Download complete iol x 3 Download Complete Saved eetSmartProDomL2_elcap exe from help sspro schwab com DENANAANAATENNENN NENE ANAE AN a ity Downloaded 7 57 MB in 1 sec Download to C 4StreetSmartProDomL2_elcap exe Transfer rate 7 57 MB Sec Open Open Folder INSTALLING THE SOFTWARE Before you install StreetSmart Pro be sure you close all other applications The installation process will start as soon as you accept the End User License Agreement and the StreetSmart Pro Agreement Click here for more information about your agreements with Schwab e The set up program will automatically install StreetSmart Pro into a new file folder the default location is C Program Files Schwab SSPro unless you indicate otherwise NOTE We highly recommend that you install the program on the default location so that it will replace any previous versions of StreetSmart Pro that may already exist on your hard drive If you do not over write previous versions you
9. Net Cost of Collar Current Stock Price e Maximum Gain vs Long Stock Strike Price of Call Current Stock Price Net Premiums e Maximum Gain vs Short Stock Current Stock Price Strike Price of Put Net Premiums Objectives Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 127 StreetSmart Pro User Manual e Hedge an existing position for the short term that customer is willing to sell buy in at a set price e Risk mitigation in exchange for limited profit potential e Lower cost protection than purchase of protective put alone EXAMPLE Collar on long equity position An investor is long 100 shares of XYZ at 64 00 and wants to protect his downside risk using a protective collar The important things are the percentage loss the customer is willing to assume and the point that the investor is willing to lose the stock through assignment of the short call position Lets assume that the investor is only willing to lose 5 to 10 percent on the downside and will only sell his stock on a 10 to 20 percent move upwards Let s assume that the XYZ 60 Puts are trading at 95 and the XYZ 75 Calls are trading at 95 The net effect of establishing a collar long stock long put short call using these two strikes is a net debit credit of 0 The investor is protected after a 6 25 loss and may participate in an upside move of up to 17 2 The investor assumes some risk of loss in exchange for ret
10. Open Old Watch Lists Sort Data See Sort Watch List Data and Set Up Watch List Columns topics QUICK REFERENCE TOP TEN Open the Top Ten e Click on the Top Ten icon in the toolbar Windows e If neither window is open NASDAQ or NYSE clicking on the toolbar icon will launch both Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 39 StreetSmart Pro User Manual windows If one window is open clicking on the toolbar icon will launch the window that is not open Go to Tools gt Start Tools Put a check next to the window either NASDAQ Top Ten NYSE Top Ten or both Click Start The Top Ten windows will automatically appear on your cockpit Load a Symbol Right click on the symbol in the Top Ten window and into the Trading click Load Symbol into Trading Window Window Research or get Right click on the symbol in the Top Ten window and an Extended click Research Ext Quote Quote fora symbol in the Top Ten QUICK REFERENCE HIGHS amp LOWS Open the Highs amp Click on the Highs amp Lows icon in the toolbar Lows Windows The Highs amp Lows window will automatically appear on your screen Go to Tools gt Start Tools Increase the number next to High Low to 1 or more Click Start The High Low window will automatically appear on your screen Change Data You Go to the Highs amp Lows Menu Bar and click on Settings Want to Track gt General Loa
11. c 5 5 0 s Z 5 lt oO 15 20 25 30 35 40 45 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Buy Writes amp Unwinds Of the kinds of multi legged orders that can be placed as a package using this feature buy writes and unwinds are unique in that one leg of the trade is for an option the other is for an equity Because one leg trades on an option exchange and the equity leg on a separate equity exchange the circumstances in which the Net price ind
12. 1 From the Trading Window select Settings gt Links 2 This allows you to link from a Trading Window to any chart or combination of charts To link to multiple charts such as Chart 2 Chart 2 must be open prior to going to Settings gt Links Open Charts That Are Not Linked to the Trading Window 1 Highlight the chart by clicking it 2 Type the symbol you want and press Enter Get Chart Statistics While in the chart click the left mouse button and the following information window will appear 164 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 1 08 01 00 Charts 64 75 70 00 58 50 68 63 943 610 500 The contents of this window will vary depending on the studies that you have selected in your chart To Move the Window to Another Location on the Chart 1 2 4 Click the mouse button and keep it pressed Place the mouse cursor on the top blue title bar of the window and release the mouse button Click the mouse button again and keep it pressed while you drag the window where you want it The window will only be visible while the left mouse button is down or while the cursor is on the information window NOTE To make the Info Window easier to move or always open click View gt Info Window To Expand the Detail of the Info Window 1 2 Left click the mouse button and keep it pressed Place the mouse cursor on the Info Window and then let go of th
13. Action Panel Beep If the system reaches all preset criteria the machine will beep once Pop Up Messages Window The Messages window will display a notification if the Alert is triggered If the Messages Window is not currently viewable it will pop up displaying your triggered Alert notification NOTE Whether or not you select this option a notification is always displayed in the Messages window Load Trading Window Choose to have the stock or option load into the Trading Window as soon as the Alert is triggered Play Sound File The system can be set to play an audio file when an Alert is triggered if you have a sound card and speakers The software has two sound wav files included with the application Additional sound files can be downloaded from the Web and are also included in the Microsoft Windows operating system software To add a new sound file to your pull down options 1 Check the Play Sound File box 2 Click Add Select the folder where your wav files are saved 3 Select the file you want to add then click Open 4 To hear the sound file click the play arrow to the right of the pull down box 5 You may remove any added sound file by selecting it in the pull down box and click Remove Enter Order Check this option if you want the system to send out an order once all criteria are met Be sure that the following four fields are completed first Order Type Shares Price and Method Thes
14. Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 209 StreetSmart Pro User Manual APR Annual Percentage Rate This value is reached by multiplying a year 365 days by the Performance and then dividing by the number of days in the simulation Simple interest used APR 365 Performance Days in test Buy amp Hold Profit from a buy and hold strategy Buy at beginning of test P amp L and hold Buy amp Hold A percentage measure of how much profit or loss the a buy Performance and hold strategy would of generated based on its initial equity Buy amp Hold P amp L Initial Equity 100 Buy amp Hold Annual Percentage Rate for buy and hold strategy This APR value is reached by multiplying a year 365 days by the Buy amp Hold Performance and then dividing by the number of days in the simulation Simple interest used Buy amp Hold APR 365 Buy amp Hold Performance Days in test Sharpe Ratio Risk adjusted profitability for the test time period IRX will be used for the Risk Free Rate of Return in the Sharpe formula Total Trades Total number of trades entered and exited Does not include a trade entered at the end and not yet exited Winning The total number of trades which made money excluding Trades open positions Winning Longs Number of winning long trades excluding open positions Number of winning short trades excluding open positions Most Most consec
15. Feat Ba Tyee Stop Co c x Action Acton M Beep Aci T Load Trading Window Quantity on Panel I Play Sound File csco VA I Grier i4 K Iz Commode beter P Venes Aleit Conditionsl Command A Symbol Command if CSC s share PBL loses lt value then beep ongnal tade price lt pace gt Description Panel Confirm Order coes soea piae Alert Description Settings Window Fields Conditions Sets up the conditions that will trigger your Alert or Alert with Panel Conditional order Enter the symbol of the stock or option or click the down arrow at the right of the box to choose from the current positions you hold This symbol can be different than the symbol in the conditional order command For options you may enter the symbol as symbol or symbol o Option e Automatically checked if you select an option symbol from Check Box the pull down Symbol box e You can manually check this box if you are creating an alert and or a conditional order for an option but it is not required if using entering an options symbol Original e Enter the original purchase price you paid for the equity or Trade Price option here Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 247 StreetSmart Pro User Manual e Only available for Share and Trade P amp L alerts e If the variable is Share P amp L enter the average share price you paid for the position e It the variable is Trade P am
16. Offer See Ask On Balance Volume OBV Introduced by Joe Granville in 1963 On Balance Volume OBV is a momentum indicator that relates volume to price change On Balance Volume shows if volume is flowing into or out of a security When the security closes higher than the previous close all of the day s volume is considered up volume When the security closes lower than the previous close all of the day s volume is considered down volume Open The price at which a security opened for trading on a given day Option A contract that gives the buyer the right but not the obligation to buy or sell a particular asset the underlying security at a fixed price for a specific period of time This contract also obligates the seller to meet the delivery terms if the buyer exercises the contract right The owner of call option has the right to purchase the underlying asset at a specific price and this right lasts until a specific date The owner of a put option has the right to sell the underlying asset at a specific price and this right lasts until a specific date Clients may also take specialized positions such as spreads straddles and or combinations depending on the level of trading for which they are approved Out of the Money 382 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference A call is out of the money when an option s strike price is higher than the market price of the unde
17. e If you select either Pre Market or After Hours in the routing field the Spec Cond checkbox will still be available to you but you can only change the quantity and price of your order e ECN trades on Listed stocks will still populate the time and sales window in the After Hours and Pre Market sessions e Selling of fractional shares is allowed during extended hours sessions e For more information go to the Extended Hours Trading section SELL ALL CHECKBOX The Sell All Checkbox is located in three places 90 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading e the Trading window e the Execute SmartEx Order window accessed when you check Spec Cond and e when selling from the Positions tab of your Account Details gt Trading 1 00000000 Amazon com Inc Ms OOS Ele Settings Stocks Options Adv Opt Ste change 41 13 290 Volume 4250 200 Last 4008 Open 3935 Hil 4039 Reto 5x50 BIT 100 4 cosel 3835 Lo 3912 Spreas D01 L an H SmartEx viv Spec Cond Set Buy Link _ DAY Shot Save ooe 40 09 40 Order Type lint i Time in Force pay Quay ff Special Conditions LintPice on 4 o Seppie 4 Mingy po Venly Order Save Order Cancel _SeveOrde Corcel _ Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or d
18. e Right click on the symbol from most any window and click Load Symbol into the Trading window e Double click on the symbol in the Watch List e To view the current quote for an index Level 1 needs to be enabled Enable Level 1 in the Trading Window menu by clicking Settings gt General gt L2 Data tab and then checking Level 1 SYMBOL LOOKUP Use this tool Ato look up the name or symbol of a company For example if you do not know the symbol for a company you can type in the full or partial name of the company and get back a list of companies with similar names along with their symbols Symbol Lookup Lookup by Name C Symbol Security Type IY Stock l Index In the main menu click Tools gt Look Up Symbol or click the icon A in the toolbar e Enter the name or as much partial information as you have and click Enter You may also check the Symbol option and simply enter a ticker symbol to get a company name This can be done for either Stock or Index e The closest matches to what you entered will appear at the top of the list 70 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading e You can load the data directly into the Quotes Window by right clicking the symbol and selecting Load symbol into Trading Window e Clicking on Name and Index will give you a list of all indices LEVEL II QUOTES AND TIME amp SALES The lower portion of the Stock Tab displays Level II i
19. e The four letter Market Maker ECN or Exchange ID e Their best Bid or Ask price while this is their best price it may not reflect their entire book e The Market Maker will always be displayed in capital letters while the ECNs will only display in capital letters if only their best Bid Ask quote is displayed Other non NASDAQ quotes are noted with an asterisk e To change the display go to Settings gt General gt L2 Data and click all available ECN books or exchanges NOTE The availability of book quotes from some ECNs is sporadic If checked the software will display these quotes when available e Number of shares they are making available at that price e Shares available are shown in actual amounts Level II Tips e Check Show Equity Quote Volume in 100s in the Settings gt General gt L2 Data window of your Trading window to display available shares at 1 100th of their real value e g 10 means the participant has 1000 shares available If there 72 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading are parentheses around the number it is for fewer than 100 shares and is the actual number of shares they are making available For example If you see 75 the participant has exactly 75 shares to buy or sell e Direction Quote Change Arrow Activates small up down arrows in the Level II area of the Trading window indicating the direct
20. legging in In addition to saving time creating the order having direct access to an exchange if available may improve the quality and speed of the execution by routing both legs of the order immediately and electronically StreetSmart Pro offers the following Complex Option strategies from the Adv Opt tab in the Trading window depending on your options approval level Click on the links for descriptions of each type of complex option order Strategy Sub For use Financial Characteristics Strategy when view Max Loss Max Gain Change in value in time of stock is Bullish Net Unlimited Loss Premium Paid Bearish Unlimited Net Gain Premium Received Bearish Net Strike Loss Premium Net Paid Premium Paid Bullish Strike Net Gain Net Premium Premium Received Received Bullish Net Shig Stow Loss Premium Net Paid Premium Paid Credit Bearish Shigh S tow Net Gain Spreads Net Premium Premium Received Received Debit Bearish Net Shiga Stow Loss Spreads Premium Net Paid Premium Vertical Put Paid Spreads 7 7 7 Credit Bullish Shig Srow Net Gain Spreads Net Premium Premium Received Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 117 StreetSmart Pro User Manual Long Bullish or bearish with rising volatility Straddles Neutral and falling volatility Bearish Protective Collars Debit Spreads Moderate 4 Bullish Calen
21. 11 12 13 14 If placing a Limit order type click on a price level in the Level II area of the Trading window to set the price If placing a Trailing Stop order enter the number of points or the percentage for the trailing stop If necessary change the Price using the arrow buttons or click in the Price field and use the following keyboard commands e Up Down keys to increase or decrease by 05 e Left Right keys to increase or decrease by 01 e Shift Up Down keys to increase or decrease by 005 Select the session in which you wish to trade from the order routing field SmartEx Schwab Pre Market Schwab After Hours For a comparison of each route view the SmartEx Order Types topic For SmartEx and extended hours orders the Time in Force TIF will always default to Day If you wish to use a different TIF check the Spec Cond checkbox You can check the Spec Cond box to set any additional order qualifiers or to submit a Stop or Stop Limit order This will require one more window to be reviewed prior to the Order Verification window To sell your entire position check the Sell All box The quantity will default to the shares you have available to sell When checked the quantity will become shaded See the Sell All topic for more information Once the Order Entry fields are set up to reflect the attributes you want choose your action Sell Short Buy or Save If Order Verification is enabled in the Trading windo
22. Co Inc 2006 All rights reserved 0106 5667 Charts CHART TOOL BAR The Chart Toolbar allows quick access to the most commonly used chart features To enable click Toolbars gt Chart Toolbar in the main menu e Most buttons clicked in the Chart Toolbar will affect the most recently accessed Chart window EXAMPLE You have 3 chart windows open and you most recently clicked on Chart 2 When you click the Add Edit Studies button it will open for Chart 2 If you want the button you press to affect another chart click that chart first and then click the button in the toolbar e The Regular Snap to and Best Fit trendlines are the exceptions and can be clicked in the toolbar and applied to any chart in your layout e Click anywhere in the main menu and then hover your mouse over a button to see a Tool Tip that says what the button will do e All the buttons in the Chart Toolbar correspond to a feature also found in the menu of each Chart window Customizing the Chart Toolbar Customize which icons are displayed on your chart toolbar Select Toolbars gt Customize gt Chart Tool Bar from the main menu or right click on the Chart Tool Bar and select Customize The Chart Tool Bar customization window will open You can then select which tools you want displayed on your toolbar e Use the Add Remove buttons to move buttons between the Available and Current columns e Use the Move Up Move Down buttons to put the butto
23. Co Inc 2006 All rights reserved 0106 5667 Trading EXAMPLE In the image below we have a trailing stop of 5 set T 5 SmartEx T C pts Z TrailingS vi DAY v If at any point the price retraces the specified Trailing Amount a SmartEx Market order will be routed for the quantity you specified If you place an order to close a position using a trailing stop set to 5 if the bid price increases 9 and then drops 5 the order will be sent at that time The change from the time that the trailing stop was placed would effectively be 4 above where you placed the order Defaults to the order type you selected in the Trading window either Market Limit or Trailing Stop Share Quantity Can be changed using the up down arrows however only whole share amounts can be accepted in the quantity field Limit Price Can be changed via manual input or by using the arrows can be up to four decimal places only Stop Price e Can only be entered if Stop or Stop Limit order is chosen e Can be up to four decimal places only Trailing Amount A SmartEx Trailing Stop Buy Sell Short order is a stop order whose stop price will trail either the inside ask if buying or inside bid if selling shorting at the time the order was submitted by the number of points or the percent you specified in the Trailing Amount field EXAMPLE In the image below we have a trailing stop of 5 set T 5 SmartEx E C pts TrailingS vi D
24. Indicates you already own a security and wish to transfer ownership in exchange for cash Sell Signal A sell signal is a condition that indicates a good time to sell a stock The exact circumstances of the signal will be determined by the indicator that an analyst is using Note It s unwise to base buy or sell decisions on just one indicator Sell to Close A long option position is closed when it is sold See Option Sell to Open 386 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference A short position opened when a new option is sold See Option Settlement Date The business day by which you must pay for securities purchased or deliver securities sold Short Interest The number of shares that have been sold short and not yet repurchased Short Sell Selling a stock not owned in the hope that the price will go down The seller must indicate that the sale is a short sale when the order is entered This can only be done in a margin account If available the stock may be borrowed from a brokerage firm for delivery to the buyer and must be bought back at a future date The firm reserves the right to call the security back at any time Short sales require the equity be deposited in a margin account Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account Margin trading increases your level of market risk For more information ple
25. Trade P amp L Share 5 N A N A 5 P amp L ll le a a ol pask WAL N A A A A LNA N A Trade 50 N A N A 5 Price 2 N A N A 5 167 Loses Chg from Change from Close Chg from Close Alerts using Trade Price Change from Open and Change from Close are triggered based upon Last Trade Last Trade can be based upon either Bid or Ask so be careful when setting up these types of alerts Scenario 3 Loss You bought 1000 shares of XYZ at 55 274 Current Bid 50 Share P amp L is 5 50 55 Current Ask 55 Last Trade 50 Open 49 Change from Open 1 Previous Close 48 Change from Close 2 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Goal You have an unrealized loss of 5 per share 9 09 of original cost and you want to enter an order to sell if your loss increases to 10 per share 18 18 of original cost Variables Increases Decreases ae re Loses T to Close 100 Loses Trade Chg from Open 250 Loses Chg from Close Alerts using Trade Price Change from Open and Change from Close are triggered based upon Last Trade Last Trade can be based upon either Bid or Ask so be careful when setting up these types of alerts Scenario 4 Minimizing a Loss You bought 1000 shares of XYZ at 60 Current Bid 50 Share P amp L is 10 50 60 Current Ask 55 Last Trade
26. Withdraw Cash Borrowing Settled Cash Available to Trade Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts to understand this value for all security types This value is only shown in accounts with a margin feature You will be charged interest on any amount you borrow that exceeds the Available Cash in the account Click on this button to open up the Buying Power Details window which displays the maximum amount of any given security type that you can purchase using margin borrowing This value is only shown in accounts with a margin feature The maximum amount of money you can withdraw without accessing margin borrowing The amount is a combination of credits in the account less any cash on hold The maximum amount you can withdraw from your account to by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the maximum amount you can borrow against marginable securities held in your margin account Note that recent deposits earn interest and are available for most types of trading activity but are not reflected in your authorization limit until they are cleared This value is only shown in accounts with a margin feature You will be charged interest on any amount you borrow that exceeds the Available Cash in the account Trading in the Margin Account Trading on margin does not require settled
27. You may choose whether to sort your Top Ten windows by the securities Change from Close or Change from Close Data Type Defaulted and protected to the exchange NASDAQ or NYSE for which the data is displayed Filter out zero prices volumes amp percentages When checked this eliminates potentially erroneous data from the display Click to adjust font settings Click to adjust color settings TABS Clicking Enable will add 2 tabs to the Top 10 Window Select to add a new tab to the window See the Adding Tabs to Windows topic for directions Edit tab Select to edit the current tab s settings including the name and name location 318 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools Delete tab Select to delete the current tab from the window name Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 319 StreetSmart Pro User Manual Options Top Ten OPTIONS TOP TEN Quickly identify highly active option Series Classes and Contracts based on volume or price changes using the Option Top Ten windows To open click Tools gt Start Tools in the main menu and select the Option Top Ten window you wish to view The Option Top Ten window allows you to view the top ten Series Classes or Contracts for a particular class by volume gains declines put call volume percent gains and percent declines Class Top Ten Top Volume
28. gt Balances Bar in the main menu To customize right click in the Balances Bar and select Customize Acct Net Worth ETELE EA anit Cash RES Farge Avail to Withdraw sa ra TIP Hide individual stats in your Balances Bar by clicking on the name Today s Change is hidden in the image below Select the statistics to display by clicking on Toolbars gt Customize gt Balances Bar in the main menu or by right clicking on the Balances Bar and selecting Customize The following settings window opens 8 Balances Bar Available Fields Selected Fields Avail to Trade Cash Move U Day Trade BP Ai vei Margin Equity lt Remove Move Down Equity Pet _ lt Bemove _Move Down Today s Change Margin BP Settled Cash to Trade Description The maximum amount you can withdraw from your account by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the maximum amount you can borrow against marginable securities held in your margin Use Abbreviated Field Labels Cancel Defaults e Click on an item in the Available Column to view a description of it then click Add to select the item for display in the Balances Bar e Change the order in which the fields are displayed in your Balances Bar by clicking on the field in the Selected Fields column and then click Move Up or Move Down e To minimize the screen space used by the labels click Use Abbreviated
29. information the strategy is returning e Strategy Tester e Charts e Strategy Matrix e Strategy Ticker EDITING BUILT IN OR SAVED STRATEGIES A good way to learn how strategies work and how to create your own is to start by editing some of the built in strategies Follow the steps below to edit a built in or saved strategy 1 Open the Strategy Center from the Settings menu of your Strategy tool or the Tools menu of your Chart 2 Click on a Strategy either in the Available Strategies or Selected Strategies list 192 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools 3 Click the Edit button TIP If you want to preserve the original built in or saved strategy but still build a new strategy based on the original click Copy instead of Edit and a copy of the original strategy will open with a new name you may want to change the name and Notes so they reflect the changes you are making to the strategy 4 The Edit Strategy window will open and look something like this Edit Strategy Strategy thal enters long eote chow when lhe ade pce moves above the 14 period Adaptive ASI and enters chort ents long when the wade price fals below the 14 period Adaptive ASI Trade Action Ea cc Chat Settings F Connect Erty Ext Points ceo m EDIT STRATEGY FIELDS Strategy Edit or enter the strategy name Name An optional field What you type here
30. loses 2 points to 29 Alert will fire if the last Trade Price gains 20 to 37 20 31 plus 6 20 20 of 31 or more Alert will fire if the last Trade Price loses 20 to 24 80 31 minus 6 20 20 of 31 or less 267 StreetSmart Pro User Manual Change From Open Alerts Scenario Opening price for equity XYZ is 15 Current Trade Price is 16 and current Change from Open is 1 Level of Variable Value Is Trailing Complexity Points Stop Basic Increases to Basic oo Shares Available or Intermediate Intermediate Conditions that cause the alert to fire Alert will fire if the Change from Open is 2 or more In this case Trade Price for XYZ must be 17 15 plus 2 or more Alert will fire if the Change from Open is 2 or less In this case the Trade Price for XYZ must be 13 15 minus 2 or less Alert will fire if the Change from Open increases to 3 or more current Change from Open of 1 plus 2 In this case Trade Price for XYZ must increase to 18 16 plus 2 or more Alert will fire if the Change from Open decreases to 1 or less In 268 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts this case Trade Price for XYZ must decrease to 14 16 minus 2 or less Advanced Alert will fire if the Change from Open increases to 1 20 current Change from Open of 1 plus 20 of
31. maintenance the price per share of your symbol is below 3 00 Please note You are placing a cash secured put Entering into an equity put Your available cash will be reduced by the position in a Level 1 IRA or assignment value of the put Cash account creates a CSEP position IMPORTANT If you turn off Warnings Trading window Settings gt General gt Orders your orders are automatically submitted without displaying Warning amp Informational Messages related to your orders By unchecking this feature you accept the associated risks of trading without Order Verification as described in the software Agreement and Disclosures CHANGING OR CANCELING ORDERS Changing Orders To change a SmartEx order go to the Account Detail window Order Status tab and either right click on the open order then select Change or click once on the order to highlight it then click Orders gt Change A pop up box will appear prompting you to modify your order Note that you cannot change the order type of a SmartEx order to or from a trailing stop order after the order has been submitted You must first cancel the order and then resubmit with a different order type Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 77 StreetSmart Pro User Manual Direct Access orders can never be changed Canceling Orders You can request to cancel open orders via the Order Status Tab All Open orders have a green box
32. over a given period of time Gross sales minus taxes interest depreciation and other expenses Revenue Total dollar amount collected for goods and services provided DPS Ratio Dividends per Share shows how much shareholders were paid in dividends per the number of shares issued Shares Outstanding Shows number of shares of a corporation which have been issued Recommend Buy Percentage of Buy recommendations from analysts covering the issue Recommend Percentage of Buy Hold recommendations from Buy Hold analysts covering the issue Recommend Percentage of Hold recommendations from analysts Hold covering the issue Recommend Percentage of Hold Sell recommendations from Hold Sell analysts covering the issue Recommend Sell Percentage of Sell recommendations from analysts covering the issue Num of Total number of recommendations from analysts Recommendations covering the issue Recommendation Average of recommendations from analysts covering Avg 1 0 Buy the issue 5 0 Sell Beta Value Indicates the volatility of a stock s price with dividends reinvested relative to the overall market The S amp P 500 stock price index is used as a benchmark for the overall market A beta greater than 1 0 indicates higher volatility relative to the overall market P E Ratio Latest Ratio derived by dividing closing stock price by most Actual recent actual fiscal year earnings per share Negative P E ratios or those greater than
33. strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options 126 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Rollouts A Rollout also Known as a Roll Forward is comprised of an order to close out of an option position with a near term expiration date and an order to open a new position in the same type Call or Put of option with the same underlying and with the same or different strike price and a longer term expiration date Also known as a Rollup or Rolldown when the strike price is different Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implication
34. when you change the symbol in one tab For instance if you have this checked and you enter ABCD into one of the tabs in the window and press Enter ALL tabs in that chart window will load ABCD e TIP You may establish different tabs for each new window you open The tabs and other changes to your windows are saved when you save your layout ADDING WINDOWS Windows can be added by either e Clicking on the appropriate toolbar icon or e Using the Start Tool window located in the main menu bar Go to Tools gt Start Tool CLOSE UNUSED WINDOWS You can hide delete windows in your layout permanently or temporarily To Permanently Close a Window 1 Click on X in the window you want to close 2 Save the new layout with the closed window Go to Saving Layouts for more information 22 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started To Temporarily Close a Window 1 Click the Minimize button in the top right corner of the window 2 The window will be minimized and put at the bottom of the window above the Task Bar To Reopen a Window e Goto Tools gt Find Active Tool in the Main Menu bar and click on the window you want to open SAVING LAYOUTS StreetSmart Pro software remembers the last layout you used and displays it when you logon However it s best to save your preferred layouts after customizing There are two simple ways to save your layouts Save Layout
35. 00 C 15 04Dr 5 Sell 17 50 C 17 54Dr_ 6 Sell ann F NNMAN F 10 Click on the combination you want to trade In the image above you can see the selected strategy highlighted in blue Combination For each leg click on the desired contract then right click and select which leg you want to apply that contract to i e Load ZQN ED to Leg2 or manually select the Expiration month and Strike price 140 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading 11 Finally ensure that the Price is correct It will default to the Net value of the quote you selected but you may enter a different price or use the arrows to select a new price Note that all Advanced Options orders are sent as Limit orders 12 To send the order Write Unwind Click Submit to Open or Submit to Close and Collar Vertical then verify that the order is correct Spread Calendar Spread Click Submit Order and then verify that the order is correct Straddle If you are placing a sell order click Sell to Close or Sell to Open If you are placing a buy order click Buy to Open or Buy to Close and then verify that the order is correct Combination Select the Leg Action for each individual leg only two legs per order To send the order click Submit Order and then verify that the order is correct CBOE Order xj Order You would like to Sell 100 shares to Close of MSFT and Buy 1 calls to Close o
36. 01 14 05PM TopCallVolumes 01 14 06 TopPutVolumes 01 14 06 Top Option Ganers 01 13 51 PM Top Option Decliners 01 13 51 PM Single Top Ten Top Option Gamers 01 12 06 PM Top Option Decliners 01 12 06 Ph Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients In the Settings gt General menu you may customize your Option Top Ten window s to your specific needs including filtering by whether they are in or out of the money and by particular expiration month 320 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools Opening an Option Top Ten Window 1 Go to Tools gt Start Tool in the Main menu 2 Next to Options Top 10 Class Series and or Single increase the number of windows by clicking on the up and down arrow buttons 3 Click Start FILE Close Closes the Options Top Ten window The General Settings window is a little different for each type of Option Top Ten window but following are all the options available among the three e Visible Boxes Check Top Volume Gainers Decliners to see that data in your Top Ten window Uncheck to hide that box Visible Columns Each box above can show up to three co
37. 1 ccccecce cece cnet eee e eee e eee seen eee e ene e Se eae eae HSS Sta aS HEE aS EES 344 Creating Stock Screener QuEMIES iieccces cadence ninini a a A a a 346 Sereener List VIEW oraaa an aa Aa aN ARA aA EAEE AOA TEINA NITER AARNA 349 Stock Screener List MENU cccceccece eset eect inita a a CEG AENEA LA ARARE 350 Saving Screener QUEE Soks airea A Ea E EAEn a A E aa A ERAO E 353 Query Filter D SCriPtionS ccce niie cece anua NEKA EREN EENAA KANA EENDEN ERA 355 ReferenCe ive vieieecectisad de ddetecdaddatis ceccuteuseuseteidsccctecscsdutdudaddeivsvsecbeuceusshaedsacetace 367 GIOSSALY E tenets cack iba E E era airs eden etek ava Ven Seu nade aaa a eee 368 StreetSMart Pro TAMING escscecevoceea oiia tereanga aeai dev eceedy onde acetone Ta 392 Navigating Online Help srir anana aa een Ea AAACN ATANES Aa C 393 Identifiers sasian tina wien dein a ui AENEON ANA CEIA ONE E CEEE EETAS EA ERAADA ones 395 FAQ Swiss icity EEE ANAE A ANEU EE ELE ET EE aaa wie et ee aa 396 Printable User Manuals sssssrsssssssessessosnsonnornorrorreorrenrenrernennnsnnennasnusnannnan 408 Agree mera vers iae eere ERNER ENERE ENERE OENE NEREA EREE VEEE TAERE TEET 409 Link to Customer Education s s sssessesssessenserssrrerrorrnerrenranrnrnnannnnnennasnaennennan 411 CSUK and Hong Kong CUStOMETS ssssssssesrrrrsserrnnrurerrnnnseurrnnnneurnnnnnenrrnannn ene 412 GETTING STARTED StreetSmart Pro User Manual Getting Started Welcome to StreetSmart
38. 1 Right click on the top bar of the window 24 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started 2 Click Move and an expansion arrow a plus sign with arrows at each end will appear 3 Use the Up Down Right Left arrows on your keyboard to position the window 4 Left click the mouse button to ground the window CREATE FREE FLOATING WINDOWS Your StreetSmart Pro windows can also be dragged anywhere on your desktop outside the frame of the software when you want spread the data across multiple monitors for example To Enable Disable Free Floating Windows 1 Log off but do not exit the software click File gt Logoff in the Main Menu bar 2 In the Main Menu click Settings gt General 3 To choose an unframed layout allowing you to move windows outside the frame check Free Floating Windows in the Settings window or 4 To choose a framed layout framing all windows in one large window uncheck Free Floating Windows in the Settings window You must restart the software for the changes to take effect CHANGING BACKGROUND amp FONT COLORS StreetSmart Pro software allows you to change the background and font colors in most windows To Change Colors 1 Go to the Main Menu of the window you want to change 2 Click Settings gt Colors One of three Color Selector windows will open Figure 1 Click on the color wheels to modify colors Copyright C
39. 50 Open 51 Change from Open 1 Previous Close 52 Change from Close 2 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 275 StreetSmart Pro User Manual Goal You have an unrealized loss of 10 000 16 67 of original cost and you want to enter an order to sell if your loss is only 5000 8 33 of original cost Variables Increases Decreases Gains Pied aoa to TE Trade 5 000 5 000 50 P amp L Gains Trade 50 Gains Share Trade Price Change from Close Chg from Close Alerts using Trade Price Change from Open and Change from Close are triggered based upon Last Trade Last Trade can be based upon either Bid or Ask so be careful when setting up these types of alerts 276 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Balances BALANCES TAB The Balances tab gives you vital account information including updated Day Trade Buying Power for certain accounts margin buying power on margin accounts and bank balances for Bank Sweep IRA accounts If your accounts are in a margin call the amount will be shown on the last line of the Balances screen All balances are automatically updated every fifteen minutes or 30 seconds after your orders are executed whichever happens first The Balances tab on margin accounts includes a Margin Buying Power figure Click on the Details button
40. 50 and 100 will be the same This helps provide a truer picture of charts with large vertical ranges Show Last Highlights the last trade price in the Price Scale Trade Label Show Price The Default will display the Price Scale on the right By Scale on checking this field the Price Scale will display on the left Left Show High Overlays the lines for High Low Open and Close on the chart Low Open Close Values on Chart Chart Type Allows you to quickly change between Monthly Weekly Daily and Intraday charts The Settings gt General window determines how many days or intervals are displayed Back Test You can change the Back Test settings when applying a Strategy to the chart to see how having a different starting equity or trade quantity or adding commissions to the cost of the trades will affect the outcome of the test Click to change the font style in the chart 1 When the Font box opens select the type style and size 2 Click OK NOTE Large font sizes may not allow for a clean view of the text displayed in the chart To change the colors in a chart e Select the item you wish to change then press the color 158 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts button to change and click OK Colors Select the item you wish to change then press the color button to change Foreground BarUp Bar Down Candle Up Candle D own Candlefwic
41. 99 are not considered meaningful and are not displayed P E Ratio Ratio derived by dividing closing stock price by latest Estimated consensus estimate Negative P E ratios or those greater than 99 are not considered meaningful and are not displayed Relative P E Ratio Company s Trailing Twelve Month TTM P E ratio relative to divided by the TTM P E ratio of the S amp P 500 5 Yr Projected Compounded earnings growth rate projected for the Growth Rate next five years based on the last actual reported 362 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener annual earnings and estimated consensus growth rates as provided by I B E S Margin Net income for the latest reported full fiscal year including discontinued operations but before adjustments for dividends or extraordinary items divided by net sales and other operating revenues for the latest full fiscal year Sales Per Employee Sales for the latest fiscal year divided by the number of employees expressed as dollars per employee Employees is defined as the number of full time or full time equivalent employees Long Term Total long term debt for the most recent fiscal year Debt Equity divided by total equity for the same period Return on Equity Net income including discontinued operations but before extraordinary items expressed as a of common shareholders equity for the most recent fiscal year Gene
42. Acceptable Quantity MAQ Instructs the broker to fill a minimum share amount of an order Minimum Quantity Instructions to buy or sell a specified number of shares at a limit price with the condition that the first fill must be for a minimum number of shares Momentum Momentum is an overbought oversold indicator that measures the velocity of price changes for a set period of time Momentum is measured by continually calculating price differences between the most recent price and the price n periods ago then plotting these differences around a centerline If the latest price is greater than the first price a positive value is plotted above the centerline If the latest price is below the first price a negative value is plotted below the centerline The greater the change in prices the greater the change in Momentum If prices are rising and the momentum line is above the centerline and rising an up trend may be accelerating When the Momentum line drops below the centerline a near term downtrend may be in effect One popular time period used for Momentum is the 10 day however any time period can be employed A shorter time period produces a more sensitive line with more pronounced oscillations extremes while a longer period results in a smoother line with less volatile swings Money Flow amp Money Flow Percentage Developed by Marc Chaikin Money Flow is one of several indicators available to measure the flow of money in and out
43. Alert conditions you specify are met Alerts can be set up and then saved directly to your desktop reducing the time spent creating alerts daily STOCK SCREENER The Stock Screener allows you to quickly find the stocks that meet your trading strategy The Stock Screener comes with built in queries or you can create and save your own queries by choosing from many filter variables DEMO MODE In Demo Mode you can test your trading strategies without risking capital using real time data while simultaneously learning to use your software ONE CLICK RESEARCH Access in depth independent reports on schwab com for the latest fundamental research EDUCATION WEB LINK Quickly link to all of the online training and educational material available at the StreetSmart Pro Center with a direct toolbar link December 13 2006 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 3 StreetSmart Pro User Manual New Features The following enhancements are new to StreetSmart Pro software version 4 5 These enhancements are grouped by topic and under each new feature is a hyperlink to direct you to the specific section of Online Help where this item is discussed LAYOUT amp CUSTOMIZATION BACKUP LAYOUTS The software will now save a backup of your layout on your computer so that if your layout becomes corrupted or you save changes to it that you wish to reverse you don t have to start from scratch CUSTOM
44. All Money In reference to Advanced Options all pairings for the specified strike range excluding leaps All or None AON An All or None AON order directs the broker to attempt to fill the entire amount of an order or none of it during the time limit specified AON orders do not require immediate execution and are only applicable to limit orders American Depository Receipt ADRs are securities issued by commercial banks that represent the shares of a foreign company Generally speaking a foreign company will deposit a certain amount of shares with a US commercial bank The bank will then issue a security based on a specific number of shares ADRs trade just like domestic stocks on various US stock exchanges however investors are subject to additional risks 368 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference including but not limited to currency fluctuation Their performance usually parallels that of the parent company on its domestic exchange ADRs offer international companies greater exposure and investors the chance to invest in well known foreign companies Arbitrage The simultaneous buying and selling of the same or closely related securities in different markets to take advantage of price disparities Arbitrage attempts to realize a profit with minimal to no risk but generally transaction fees and market inefficiencies will substantially minimize profitability for the reta
45. Average of the volume over the last five days Avg Volume 20 Average of the volume over the last 20 days Day Avg Volume 1 Average of the volume over the last month Month Avg Volume 6 Average of the volume over the last six months Month Avg Volume YTD Average of the volume over the last year Volume Over Difference between current Volume and yesterday s Yesterday s Vol volume expressed as a percentage i e difference between Volume and Yesterday s Volume divided by Yesterday s Volume Volume Over 5 Difference between current Volume and the average Day Avg Vol volume for the last five days expressed as a percentage i e difference between Volume and 5 Day Avg Vol divided by Yesterday s Volume Volume over 20 Difference between current Volume and the average Day Avg Vol volume for the last 20 days expressed as a percentage i e difference between Volume and 20 Day Avg Vol divided by Yesterday s Volume Volume over 1 Difference between current Volume and the average Month Avg Vol volume for the last month expressed as a percentage i e difference between Volume and 1 Month Avg Vol divided by Yesterday s Volume Volume over 6 Difference between current Volume and the average Month Avg Vol volume for the last 6 months expressed as a percentage i e difference between Volume and 6 Month Avg Vol divided by Yesterday s Volume Volume over YTD Difference between current Volume and the average Cop
46. Calif BUSINESS WIRE Amgen Nasdaq AMGN today announced that it plans to report its third quarter financial results on Monday October 23 2006 after the close of the financial markets The announcement will be followed by a conference call with the investment community at 2 ip m Pacific Daylight Time Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients TIME FRAME You can specify the time frame for the Recent News tab by going to Settings gt General in the News menu Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 337 StreetSmart Pro User Manual Recent Stories Settings Last 24 Hours Within Timeframe Starting from 12 31 1969 7 at 12 00 01 AM Ending on i1 9 2006 at 12 00 01 AM cme Select whether to display news for Today the Last 24 Hours or select a starting and ending date as far back as 5 day prior RECENT NEWS ALERT SETTINGS If you wish to be alerted when new news arrives for your watched symbol go to Settings gt News Alerts and choose whether to play a sound file and or switch the News window to display the Recent Stories tab Recent Stories Alerts When a new headline appears in
47. Co Inc 2006 All rights reserved 0106 5667 Market Data Tools windows at a time and each window can have up to 20 tabs containing separate watch lists Watch Lists update during all trading sessions When entering an option symbol be sure you precede the symbol with a period for example INQFF or follow it with o for example INQFF o LOAD A WATCH LIST Customized and built in Watch Lists are easy to launch 1 2 or Go to the Watch List Menu Bar and click File The last 10 viewed or built in Watch Lists will appear in the drop down menu Click the Watch List you want to see Click File gt Load Watch List Select the Watch List file name you want Click Open Load Stock List Look in CQ Stocklists ex Ee E CBOEGoId GOx stk E DIL0 MUT stk E CBOEInternet INx stk E DJIEquityREIT DIR stk E CBOEMexicof MEX stk E DIIndustrial4verage DIX stk E CBOEMIniNDx MNX stk E DJInternetCommerce ECM st E CBOEOIK OIX stk E DITransportation 0Tx stk E CBOETech TXXx stk E DIUSBasicMaterials Top30Holdi gt Files of type Stock List Files stk Cancel ADDING REMOVING SYMBOLS Symbols can be easily added or removed from the Watch Lists but not from the My Positions Watch List Here are three ways to change the contents of a Watch List 1 Quick Add or Remove e Click in the Watch List window where you want to add or dele
48. Co Inc 2006 All rights reserved 0106 5667 219 StreetSmart Pro User Manual Strategy Matrix STRATEGY MATRIX The Strategy Matrix tool lets you monitor technical strategies for individual securities or indexes It monitors the specified security or index for each period to see where that security or index may meet the pre defined parameters for each technical strategy To open the Strategy Matrix click Tools gt Start Tool in the main menu and select Strategy Matrix Rather than being limited to monitoring only a few studies for a single period length as you would if you watch the chart the Strategy Matrix tool can sift through large quantities of data to provide immediate feedback across a broad range of periods and strategies You select the technical strategy and time periods the Strategy Matrix tool displays and it displays in real time whether each strategy over each period length meets the pre defined technical analysis parameters The technical strategies available are similar to studies or combinations of studies in Charts but are programmed to display a possible upward or downward trend based on selected strategies An Up means a possible upward trend and Down means a possible downward trend f Strategy Matrix File Settings X Up 79 Down 49 None 4 Bid 81 56 Ask 81 58 Last 81 58 Strategy in bar 10 minbar 15min bar 30 minbar ED min bar Dailybar 20 Pri z 20 Prics n 50
49. F i a Low Low if gt 0 0 F Factor is related to an n day SMA by the formula TIP Right Click Shortcut to Add a Study or Trend Line e Right click in the chart e Go to Tools and select Studies or Trend lines and select New or Delete ADD OR DELETE A STUDY Studies Options Adaptive ASI Average DM ADX Adaptive ASI Average True Range Bollinger Bands CCl Directional Movement D gt DM D1 Positive DM DI Negative Envelope Historical Volatility Keltner Channels Last Close Intraday MACD con pe MACD Histogram ow in udy 7 mF Show label Money Flow Percent i Moving Avg Exponential ET Moving Avg Geometric Moving Avg Simple Moving Avg Smoothed On Balance Volume Pivot Points Intraday Price Relative Rate of Change Relative Strength Index Signal Line To Add a Study 1 Click Tools gt Studies and the Studies Set up panel will appear 2 Click on a study in the left column 3 Click the gt gt button to activate the study 180 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts To Customize the Study 1 When it appears in the right column click on the study to change its Period s Color Show in and Label properties 2 To change the default period click in the window and add the new variable for your period 3 Use the Show In drop down to overlay the study in the main chart window or place the study in a separ
50. FILTER In the Primary Filter you will query the broadest or most fundamental parameter in your list of criteria such as Current Price between 10 and 20 Volume greater than 1 000 000 etc The pool of data this creates will be narrowed when or if you add Secondary Filters 1 Choose the variable to query from the pull down menu next to From the Criteria List 2 Choose to query the 346 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener Top Gives you the top N stocks N is the number you enter in the Values field sorted by the query variable that meets the query and filter requirements For example if you query Volume for the top 20 stocks your base query will consist of the 20 highest volume stocks Bottom Gives you the bottom N stocks N is the number you enter in the Bottom field sorted by the query variable that meet the query and filter requirements For example if you query Change from Open for the bottom 20 stocks your base query will consist of the 20 stocks with the lowest number when subtracting Current Price from Open price usually negative numbers Values To use this option you must also select a relation from the pull down menu on the right i e greater than between etc and enter a number in the neighboring value field Two value fields will be used when Between is the selected relationship 3 Click on OK to run the query using the Primary Filter o
51. Field Labels Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 283 StreetSmart Pro User Manual TIP Change any of the fields on the fly by right clicking on the name of the field and selecting a different one from the drop down list Today s Change i 687 862 Avail to Withdraw Settled Cash to Trade Avail to Trade The maximum amount of money in your account that you can Cash use to trade without accessing margin borrowing ay Trade BP Total market value of new securities into which you may enter and subsequently exit without incurring a margin call Margin Equity The dollar value of marginable securities in your margin account less the amount you owe Schwab plus any cash in your margin account This is the liquidation value of your margin account but does not include option positions segregated money market funds or cash not held in the margin account Margin Equity represents the total amount you invested in securities plus any excess cash minus funds borrowed on margin Equity Pct Your margin equity divided by the market value of your margin account This amount reflects the percentage of the current margin account value you would receive if you liquidated the margined securities paid off any margin debt and withdrew the funds Options cash account positions and segregated money market funds are not included when calculating the equity percentage Today s The percent cha
52. L2 Opt Adv Opt Shrtbl 50 000 Sym Ch 015 Chg 0 84 Last 17 65 T Open 17 71 Hi 17 86 Ratio 3x512 Vol 10 838 401 Close 17 80 Lo 17 50 Spread 0 01 Oty 1000 H s Venue SuperMontage Buy Limit 17 67 Type Limit z Shor TIF Day M aa Cancel CxiAI Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Order Routing All StreetSmart Pro users have access to SmartEx order routing which is designed to see the best trade execution for your order in the timeliest manner possible unless otherwise specified Users who want more control over the routing of their orders may wish to enable Direct Access Trading for their accounts Direct Access trading entails certain risks and responsibilities As a result we have established special eligibility requirements for Direct Access trading These eligibility requirements are posted on the StreetSmart Pro Center of Schwab com in the section called Trade Routing With Direct Access in addition to SmartEx order routing you can route orders directly to e Direct Access ECNs including INET ARCA ONTD BTRD and BRUT e SuperMontage NASDAQ operated system that routes orders to Market Makers and participating E
53. Lower Threshold Symbol List Adding Symbols Click Settings gt Symbol List In the Symbol List window type in the stock or index After typing each press Enter on your keyboard or click the Add button After all the stocks and indices have been entered click OK Another way of adding deleting stocks to the High Low window is by pressing the Insert Delete keys on the keyboard Type in the stock to add delete in the Quick Add Quick Remove box that appears Saving a Symbol List 1 Click File gt Save Stock List As Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 325 StreetSmart Pro User Manual 2 In the Save window that appears type in the file name you would like to save the list as then click Save The filter allows you to ignore stocks above or below the set prices as well as below a user defined Five Day Average Volume Filters do not apply to indices e Price Level Filter allows you to set the price level below which and above which a stock will be ignored Click on the arrow buttons provided to increase or decrease the prices within the Ignore Stocks Below and Ignore Stocks Above settings indicates these levels Five Day Average Volume Filter allows you to set the five day average volume below which a stock will be ignored Five Day Avg Dollar Volume Filter allows you to ignore symbols with a five day average dollar volume below a certain value use the up and d
54. Move your mouse pointer to the thin bar on the left side of the Chart Tool Bar 2 Click on that bar and then drag the window to the location of your choosing 3 Let go of the mouse button oolbar Features Not all buttons are displayed by default To add a button click Toolbars gt Customize gt Chart Tool Bar in the main menu Chart General Open the General Settings for the most recently Settings accessed Chart window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 51 StreetSmart Pro User Manual p Crosshairs Select to change your cursor to display a crosshair when you click on the chart The Crosshair pointer can help you pinpoint prices on a chart more easily than when using the regular cursor Select again to turn off Crosshairs B Chart Type Choose Monthly Weekly Daily Intraday or Tick a Chart Interval Choose from 5 to 120 minutes or select Other to open the Chart Settings window where you can enter a different interval Only applies to Intraday chart types Add Edit Click to open the Add Edit Studies window which Studies lets you add technical analysis studies to your chart Go to Chart Studies for information on each available study Trend Lines Click to draw Trend Lines on the chart The pointer will change to a pencil icon Click and drag to draw the trend line Click the Trend Line button again to stop drawing trend lines or select another button Edit Tr
55. Mowing Avg Smooth Smosth Crosa Moning Arg Smoothed Prices Cross Relative Strength Iridex Level Crozs f g I Directional Anom B i Stochastic XD Level Cooss Stochastic 4K 4D Cross Stochastic RSI Level Cross Wane XR Level Cross Tiade Action M LongEry V Long Ext Set as defauk M ShetEnty V Short Ext Description Strategy that idertifies when the trade pice moves above or falls below the 14 period Adaptive ASI cmos __ A number of important settings are found here each of which is described below EDIT INDICATOR FIELDS Available Indicators Trade Action Chart Display Settings Select an indicator from this set list of Available Indicators and set the Period Deviation or any other variables that may exist for the indicator TIP A description of each indicator displays near the bottom of the window when you click on it Select which trade action types you want the indicator to flag e Long Entry and Short Exit If checked will trigger when a price or level cross takes place that based on the parameters of the selected indicator may mean the stock price is about to go up Long Exit and Short Entry If checked will trigger when a price or level cross takes place that based on the parameters of the selected indicator may mean the stock price is about to go down Text Labels Check the boxes to display labels showing the Trade Action and or Indicator Name when the
56. Power information about Day Trading Buying Power DTBP please consult your Schwab Active Trader Broker Month to The amount of margin interest you owe Schwab accrued from Date Int the beginning of the interest period through the date of your Owed inquiry The interest period begins on the second to last day of each month If your margin equity falls below the percentage level required under Schwab or regulatory requirements if you make a purchase for which you have insufficient equity to meet the Fed s requirements or if you have insufficient cash to cover your open uncovered option or spread positions you will be subject to a margin call If there is a margin call on your account it may be displayed at the bottom of the screen and immediate action on your part is required However Schwab reserves the right to initiate immediate liquidation procedures without notice TIP Showing Hiding the Balance Status Bar 282 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts To hide your Net Worth or any other Balance Status Bar field from being displayed on your screen simply click on the label Net Worth next to the numerical field The Net Worth field will disappear BALANCES BAR The Balances Bar keeps important account data at your fingertips You may customize the types of data shown based on the information that s most important to you To enable click Toolbar
57. Show Hide Shows removes the Account Detail menu Menu Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 235 StreetSmart Pro User Manual Alerts ALERTS OVERVIEW Alerts and Conditional Orders are designed to help you protect profits and limit your loss potential by monitoring for the market conditions you specify even when you re not online When logged in you can have the software alert you when certain price conditions you specify are met Even if you are not logged in you can have orders placed automatically on your behalf when your Alert conditions are met Set up alerts using the Alerts menu displayed in the Account Detail window when the Alerts tab is selected Overview StreetSmart Pro software offers a variety of ways to keep you informed of specific quote and volume changes for specific equities options and indices that you select Alerts range in degrees of complexity from basic to advanced Examples of each Alert type and how they function are included in this section of the manual Basic Alerts Basic alerts use a single absolute criterion to set off trigger the alert Once the alert condition is met no additional calculations are required before the alert is fired There are two absolute criteria e Increases to e Decreases to Intermediate Alerts Intermediate alerts use a single variable criterion to trigger the alert The variable criterion is based
58. SmartEx order routing is available during the standard session only It is not available during the extended hours sessions With SmartEx there is only one commission charge and one order number unless you change or cancel the order regardless of the number of executions it takes to fill your order PLACING A SMARTEX ORDER IN THE STANDARD MARKET SESSION 1 Enter the symbol in the symbol field and press Enter on the keyboard 2 The symbol field background should be white If it s blue the window has not been updated with the quote information for the new symbol To make the symbol field background white press Enter on your keyboard 3 If necessary change the quantity using the arrow buttons or the following keyboard keys e Up Down keys to increase or decrease in increments of 500 e Left Right keys to increase or decrease in increments of 100 e Shift Up Down keys to increase or decrease by 10 e Or click in the quantity field and type the number of shares or contracts e TIPS e You can also click the button and enter a dollar value to see how many shares you could trade for that amount e To set the default quantity to a different amount go to Settings gt General gt Orders gt Quantity in the Trading window menu 4 Choose whether to place a Limit Market or Trailing Stop Order Type Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 87 StreetSmart Pro User Manual 10
59. Stock Limit Market Inc m Invisible Market E Order Conditions Day IOC Max Floor Peg Diff Discretion Day IOC Day IOC Day IOC Max Floor Peg Diff Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Security Types Traded NNM Listed OTC NNM Listed OTC NNM Listed OTC NNM Listed 95 StreetSmart Pro User Manual Market Minimum Peg Quantity Primary ONTD OnTrade SuperMontage Market NASDAQ Makers Market and Participati ng ECNs DIRECT ACCESS ELIGIBILITY Direct Access order routing is available to eligible clients who want more control over the routing of their orders Direct Access trading entails certain risks and responsibilities As a result we have established the special eligibility requirements for Direct Access Trading These eligibility requirements are posted on the StreetSmart Pro Center of Schwab com in the section called Trade Routing PLACING A DIRECT ACCESS ORDER Placing a Direct Access order is similar to placing a SmartEx order except you may use one of a variety of ECNs or NASDAQ SuperMontage 1 Enter the symbol in the symbol field and press Enter on the keyboard 2 The symbol field background should be white If it s blue the window has not been updated with the quote information for the new symbol To make the symbol field background white press Enter on your keyboard 3 If necessary chang
60. Strategy is applied to a chart Trade Action Pointer Check to display an arrow pointing to the exact price point at which the action takes place along the bar or candlestick Directional Arrow Check to display an up arrow when the indicator parameters suggest an upturn in the stock price and a Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 197 StreetSmart Pro User Manual down arrow when the parameters suggest a downturn Click the color wheel buttons g to change the color of the Text Labels Trade Action Pointer and Directional Arrow INDICATOR DESCRIPTIONS Adaptive RSI 14 Strategy that enters long exits short when the Price Cross trade price moves above the 14 period Adaptive RSI and enters short exits long when the trade price falls below the 14 period Adaptive RSI Bollinger Bands 20 2 Strategy that enters long exits short when the 2 Price Cross trade price moves above the lower band and enters short exits long when the price falls below upper band on a 20 period BB with a deviation of 2 DM DI DMI DI Strategy that enters long exits short when the Cross DM DI moves above the DM DI and enters short exits long when the DM DI falls below the DM DI Envelope 21 3 Strategy that enters long exits short when the Price Cross trade price moves above the lower band on a 21 period 3 Moving Average Envelope and enters short exits long when the price fall
61. Trade Price or Equities Bid Ask Price to calculate after hours P amp L When unchecked P amp L in P amp L calculations will use the closing bid ask to calculate P amp L so Extended the calculation will not update after hours Hours Increase or decrease your Update Rate This will control the speed of the data that your CPU must process If you have a slower processor it may be helpful to reduce this rate Move the pointer between Slow and Fast to control how many times per second your window refreshes Open Links Choose between Internal or External Browser Using e Controls whether web browsers launch within internal the cockpit or as a separate window external Applies to the Education Weblink icon right click links to Schwab com Research amp Extended Quotes and News links Logging off and then back on is not required for this setting to take effect The Folders settings provide a way to save certain types of files used by the software in a predictable location Type the location or click Browse to find a location in which to save each of the following types of files then click OK when you are finished Layouts C Program Files Schwab SSPro spout Browse 4 od Sounds C Program Files Schwab SSPro S ounds Browse Stock Lists C Program Files Schwab SSPro StockLists Browse Quesies C Program Files Schwab SSPro Queries Browse Aleits C Program Files Schwab SSPro Akits Browse Cance
62. a 100 Shares aa Mov Avg Sim 20 Price Cross Strategy that enters long exits short when the trade price move Moving vg Simple Price Cross 20 Long Entry Long Exit Short Entry Short Exit 10 mins 100 0 1 5 You can also change the Back Test settings from the Performance Details window to see how having a different starting equity or trade quantity or adding commissions to the cost of the trades will affect the outcome of the test Click Settings gt Back Test in the Performance Details menu to configure those settings Strategy testing past performance data should not be construed as indicative of future results PERFORMANCE DETAIL DESCRIPTIONS Following are descriptions of the fields in the Strategy Performance Detail tabs PERFORMANCE SUMMARY Symbol Symbol for security Strategy Name of Strategy Test When the test was run Date Time Time length of bar e g 5 Min 60 Min Daily etc Back Test Bars Maximum number of bars for which the test was run Start Date and time of the first bar of the test Date Time End Date Time Date and time of the last bar of the test Closed P amp L Total profit or loss from closed positions Open P amp L Profit or loss on open positions at the end of the test Performance A percentage measure of how much profit or loss the system generated based on its initial equity Performance Profit Open P amp L Initial Equity 100 Copyright
63. a particular study may be indicating and then applying that study to your charts you may be able to identify trading opportunities points of support or resistance at certain price thresholds price trends and more Add Studies to a chart from the Tools gt Studies menu StreetSmart Pro software allows you to incorporate studies into your charts for technical analysis Studies can e Overlay on the price chart e Display below the price chart use the Show In drop down located in the Studies window to put additional studies in separate panels in the Chart Window NOTE The same study can be displayed in both places Choose from the following default study parameters Study Name Description Adaptive RSI Adapts the standard RSI to a smoothing constant Default of 14 periods minutes hours days etc can be changed For calculation purposes Adaptive RSI is somewhat similar to an exponential moving average but instead of averaging prior values using a fixed percentage it uses a variable percentage based on the RSI The formula is ARSI Close for boa ARSI ARSI _ sc Close ARSI TERES RSI where 100 and n is the RSI period i e an n period RSI s 2 5 Average DM Average Directional Movement is an oscillator that fluctuates between 0 ADX and 100 reading above 60 are relatively rare It s values are interrelated with DI DI and DX 168 Copyright Charles Schwab amp Co In
64. amp Co Inc 2006 All rights reserved 0106 5667 Charts WR Edit Tick Data Allows you to change bad chart price data which may impact the technical studies enabled on the chart Click the Edit Tick Data button in the toolbar and then click the price point you need to edit on the chart A window will open that allows you to change all four price points for that period open close high low Click the Delete icon to see a list of studies and trend lines in the most recently accessed chart so that you may delete one or more of them You can also chose Delete All Studies to clear all studies from the chart Delete will not clear support and resistance lines You must right click on the line and select Delete to remove it Switch between Bar Candlestick Line or Point amp Figure chart types Read more about each of these graph styles in the Chart Menu Bar topic Click to hide or show the vertical time lines on the chart Click to hide or show the horizontal price lines on the chart Click the button and then click on the chart to apply a Best Fit Regression trend line to the chart Read more about Best Fit in the Trend Lines topic Click the button and then click and drag a line on the chart to apply a trend line that snaps to the open high low or close of the trend being studied To change which price the trend line snaps to the default setting is Close click the Edit Trend Lines button in the toolb
65. as a GMA much greater move than a 1 increase in a 75 stock z gt in Price GMA exp imt l n The formula for an n period GMA is where Price is set to the Average variable you select when you set up the study Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 173 StreetSmart Pro User Manual Moving Average An exponential moving average with a longer period used to determine Smoothed OMA On Balance Volume OBV the average as older prices are never removed from the calculation but are given less weight Best used in trending markets The initial value of an n day OMA is the same as the initial value of an n period SMA indicator Subsequent values are determined using an inductive formula in the manner of the EMA described above t Price OMA i mt x 1 The formula for the initial value of OMA is oma OMA OMA _ Price The formula for subsequent values is z This indicator relates volume to price changes by adding volume to a running total when the price closes up for a period then subtracts the volume if the stock closes down for a period You can overlay the study on or underneath the price chart The formula is z OBV F S Voh g inl where 1 if Close Close gt 0 and Di ig Close Clase lt 0 174 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts Paraboli
66. as principal or agent buy from or sell to clients Click a headline in the Breaking News tab to retrieve the complete article Use the scroll bar on the right side of the window to move through the article or use the Page Up and Page Down keys on your keyboard Filtering Breaking News You can limit the volume and type of news headlines that appear in your Breaking News tab by only displaying stories that have the keywords you specify 1 Click Settings gt Keyword Filter in the News menu to open the Filters window To start check Enable Breaking News Filtering 3 Select whether you want the keyword to appear in the headline story text or either Type the keyword or phrase and click Add to add it to the list 5 To remove any of the words click on the word and click Remove 6 Click OK when you are finished setting up your filters Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 335 StreetSmart Pro User Manual Breaking News Keyword Filter 336 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 News Recent Stories Tab The Recent Stories tab allows you to watch for news on a particular symbol for the current day or for up to 5 days in the past News 1 AMGN File View Settings Breaking News Recent Stories AMGN News Watch Symbol News Code AMGN Ss 10 09 06 16 35 Amgen Announces Webcast of Third Quarter Financial Results THOUSAND OAKS
67. at or below the stop price For equity buy stop orders the order is activated when the offer is at or above the stop price For options sell stop orders the order is activated when the offer is at or below the stop price For option buy stop orders the order is activated when the bid is at or above the stop price Once the order is activated you are guaranteed execution but there is no guarantee of the execution price Execution may occur either above at or below your stop price Strike Price or Exercise Price The price at which the owner of an option can purchase call or sell put the underlying security Subscriber 388 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Subscriber Only orders are identical to normal orders except that they are not included for display in the ISLD quote on NASDAQ They are visible to anyone with access to the Island book and have the same execution priority as unrestricted orders Invisible and Subscriber Only orders do not comply with the Display Alternative as described in the SEC Order Handling Rules SuperMontage SuperMontage is NASDAQ s fully integrated order display and execution system SuperMontage was designed to help reduce market fragmentation provide best execution expand the number of choices to Market Participants and better handle the growth of the market It is also a voluntary open access system that is intended to in
68. be based on a non technical event such as a change in an analyst recommendations or the release of positive news Note It s unwise to base buy or sell decisions on just one indicator 370 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Buy Stop A buy stop is a buy order usually placed above the current price requiring that a security would have to trade at or above a set level before the buy order would be activated For example an order could be entered at 35 5 for a security trading just below resistance at 35 By placing a buy stop order just above resistance the trader prefers to wait for that security to break resistance before going long This type of order can also be used as a stop loss for a short position Please note that there is no guarantee that execution will be at or near your stop price Buy to Close You close a short option position when you buy it back Buy to Open You open a long position when you buy a new option Buying Power This is the maximum dollar value of marginable securities that you can buy in your margin account without depositing additional equity Buying power is calculated at the close of business each day and may fluctuate throughout the day AIBICIDIJE FIGIHITIJ KILIMIN JO P IQ RIS TJUIV WI XIYIZ Call Option An option contract that gives the holder the right but not the obligation to buy 100 shares of the underlying security at a fix
69. be set below the current price and rise as the price advances Should the price decline and reach the trailing stop then a stop order would be triggered and the position closed As long as the price remains above the trailing stop the position is held Trend Trend refers to the direction of prices over time Rising peaks and troughs constitute an up trend while falling peaks and troughs constitute a down trend Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 389 StreetSmart Pro User Manual Trends are generally classified as major longer than a year intermediate one to six months or minor less than a month Trend Line Trend lines are created by joining significant highs and lows on a price chart An up trend line connects a series of higher lows while a down trend line connects a series of lower highs An internal trend line can also be drawn to best approximate the majority of relative highs or relative lows without any special considerations given to extreme price points Triangles Triangle patterns are sideways patterns in which price fluctuates within converging trend lines The three types of triangles are the symmetrical the ascending and the descending A symmetrical triangle occurs when prices are making both lower highs and higher lows An ascending triangle occurs when there are higher lows as with a symmetrical triangle but the highs are occurring at the same price level d
70. changed over the last 60 closes Money Flow Money Flow keeps a running total of the money flowing into and out of a security The direction of the Money Flow line is the important component to 360 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener watch not the actual dollar amount This indicator can be used to confirm underlying strength or weakness of a price trend Money Flow Percent Money Flow Percent is also called Chaikin Money Flow It normalizes the Money Flow calculation above by dividing by the cumulative volume for the period Williams R Measures the percentage to which a stock is overbought or oversold based on the position of the current period s close to the range of prices over a time period 14 Day DM DI The basic Directional Movement trading system Positive involves comparing the 14 day DX Directional Indicator and the 14 day DX This can be done by plotting the two indicators on top of each other or by subtracting the DX from the DX The study indicates buying when the DX rises above the DX and selling when the DI falls below the DX 14 Day DM DI The basic Directional Movement trading system Negative involves comparing the 14 day DX Directional Indicator and the 14 day DX This can be done by plotting the two indicators on top of each other or by subtracting the DX from the DX The study indicates buying when the DI rises above t
71. changes you wish to keep Main Click to hide or display the main toolbar where you can access Toolbar many of the tools in your software Hover your mouse over an icon in the toolbar to see what it will open For more information about the toolbar visit the Toolbar topic Balances Select among several account statistics to display in your Bar StreetSmart Pro window at all times For more information on configuring the statistics displayed visit the Balances Bar topic below Chart Click to hide or display the Chart toolbar which gives you quick Toolbar access to chart features such as trend lines retracements and other chart settings Hover your mouse over an icon in the 10 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started toolbar to see what it will open See Chart Toolbar for more information on this tool Status Bar Click to hide or display the server and order routing status bar at the bottom of the software window See Status Bar for more information Live Help Click to hide or display the Live Help bar which you can click to Bar open a chat session with a StreetSmart Pro client support representative NOTE It is important that you do not use the Live Help panel in StreetSmart Pro to request authorize or effect the purchase or sale of any security or commodity to send fund transfer instructions or to effect any other transactions Any such requests o
72. click on the minimized window or click Tools gt Find Active Tool then click on the window name you want to maximize Toolbar Get a quick description of each icon in the Toolbar by moving your mouse over it When you pause on an icon a Tool Tip will pop up The Toolbar topic provides more information on each tool and how many of each window can be open at any one time Start Tools Click Tools gt Start Tools in the main menu bar to open the Start Tools menu where you can add or reopen windows in the layout Each window has a Menu Bar Display or hide Menu Bars by right clicking in the window and clicking Hide Show Menu Each window has a context sensitive help available from the right click menu Access the Online Help for a particular tool by right clicking in the window and clicking lt Tool gt Help Save your layouts by going to the Main Menu Bar and selecting File gt Save Layout As Then save each layout by name QUICK REFERENCE TRADING StreetSmart Pro Trading Window Turning on and off Level II and ECN quotes e Enter your order in the Order Entry panel in the Trading window If the Order Entry panel in the Trading window has been minimized simply click the Open Close Order Entry Panel arrow under Last quotes Click on Settings gt Data Source in the Trading Window menu and choose which level of quotes you wish to view If you are trying to view Level II information and the checkbox is gray
73. column click again to reverse the sort order Press Shift and click on a second column to perform a secondary more detailed sort within the primary sort For instance if you wanted to see all the Open Buy orders you could do a primary sort on Status and a secondary sort on Action and the Open Buy orders would be grouped together Order Status automatically updates when orders are executed either via StreetSmart Pro or other Schwab channels 146 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Account Detail 00000000 File view Settings Alerts Order Status Order Status Saved Orders Alerts Balances Li anadal me e a Qty Open IBAB Opt Buy to Ope NOTE Short Sell Exempt orders will display in your Order Status tab A customer service representative may enter Short Sell Exempt orders on your behalf in certain limited circumstances The most common instance when this may occur is when liquidating the underlying security where the position is held as either an equity right warrant or convertible In these circumstances the securities are not in an acceptable form for delivery on settlement date Note that you must file an exercise for the right warrant or convertible before your order to liquidate the underlying security can be marked as Short Sell Exempt This action acknowledges that the intent is to sell a position instead of short a stock and is therefore exemp
74. consists of one or more indicators such as a price crossover on Bollinger Bands Moving Average Envelope etc with an associated trade action such as Long Entry Short Exit etc The information you get from each strategy depends on what tool you apply it in For example applying a strategy in the Strategy Tester tool or in a Chart will apply the strategy for a certain period of time going backwards to see how well the selected strategy would have performed historically for a stock or list of stocks Whereas in the Strategy Ticker and Strategy Matrix the strategies are applied to real time data in order to flag occurrences of the selected strategy crossing whatever threshold is set by the strategy The Strategy Center is accessible from any of the Strategy tools or from your Charts 186 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools Strategy Center Available Strategies Selected Strategies Adaplive RSI 14 Price Cross A Mov Avg Sim 20 Price Cross BOL Envelope 21 3 Price Cross Bolinger MACD SL Money ay eo ea non Exp 10 Exp 10ss Exp 20 Price Cross amp Remove Exp 200 Price Cross Terena Exp 50 Exp 200 Cross Exp 50 Prce Cross Geo 10 Geo 20 Cross Geo 20 Price Cross Geo 200 Prce Cross Geo 50 Geo 200 Cross Geo 50 Piice Cross v New Edk Copp Delate Notes Strategy t
75. construction window will open allowing you to make changes to the query however you must change the name of the query to save it because Built In queries cannot be edited or deleted 4 See Creating Screener Queries for instructions on creating editing queries Move Columns you want to see in the List over to the Selected Columns Column data can also be changed by right clicking the Watch List column heading You can change the order of the column data by dragging the column heading box to the desired column location Long Names Abbreviations Select which format you would like for displaying the Sector Industry and Sub Industry columns Columns Available Columns Selected Columns Volume a Symbol Name High Lawes Current Price Low Chg Open Open nemoe Chg Close Close Daily High Count Daily Low Count 52 Wk High 52 wk Low 52 Wk High Daily High 52 Wk Low Daily Low Description Sector Industry S ub industry Long Names Abbreviations Cancel Reset Columns Returns columns to their original layout and will reset the first two columns of the list for both Built In Queries as well as User Queries Choosing Reset Columns will always reset the first column to the Symbol Name The second column will be set to match the Primary Filter of the query you are currently viewing Allows you to select the font weight and size for text used in the Graph window Copyright Charles Schwab a
76. corresponding security s dividend is being reinvested No indicates that no dividends are being reinvested for that security and that dividends will be paid in cash Describes what type of security the position is Right click Descriptions Options Load e Loads the symbol into the Trading window Symbol into Trading Window e The quantity field is set to the Trading window default size may not match your position size Go to Settings gt General to change the default quantity to Set Quantity to Open Position Recent Loads the symbol into the News window Stories for Symbol Adjust Cost Allows you to add and edit cost information for your position for Symbol Research Ext Launches a web browser that automatically opens at Quote for schwab com for quotes and research 288 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Symbol Account Detail amp Alerts Apply Alert Opens sub menu allowing you to use an alert template or to symbol create a new alert Close ee Closes out the position and sends a SmartEx order Symbol Show Hide forane Shows removes the Account Detail menu Menu P amp L CALCULATIONS Following is an example of how P amp L is calculated when there are multiple executions for one position Executions 1 15 04Buy 500 DELL 20 1 15 04Buy 500 DELL 30 1 16 04Sell 200 DELL 35 1 16 04Sell 400 DELL 32 1 17 04Buy 60
77. debit balances Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 49 StreetSmart Pro User Manual Margin BP The maximum value of marginable securities in which you can invest without depositing more equity in your margin account this includes funds you can borrow from Schwab but does not include balances in your Cash Account or Money Market Funds Avail to The maximum amount you can withdraw from your account Withdraw by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the maximum amount you can borrow against marginable securities held in your margin account Settled Cash Trading in a Cash account requires using Settled funds If a to Trade security is purchased using settled funds there are no requirements surrounding the time frame of when the newly purchased securities can be sold Settled funds are comprised of incoming cash such as a deposit or wire transfer any available Margin Loan Value or settled proceeds from the sale of securities that have been fully paid 50 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Toolbars CHART TOOL BAR The Chart Toolbar allows quick access to the most commonly used chart features To enable click Toolbars gt Chart Toolbar in the main menu e Most buttons clicked in the Chart Toolbar will affect the most recently accessed Ch
78. deposits account information Bank deposit accounts are held at the affiliated FDIC insured bank referenced on the Balances tab your account statements and disclosed in your account documents Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 291 StreetSmart Pro User Manual NOTE If your account includes transfers made to or received from a bank deposit account the footnote shown in the image above will display Descriptions j tions The date the transaction occurred For trade orders this reflects the date the order was filled fean This indicates whether a action was a Buy Sell Sell Short or b i is left blank for monetary transactions Quantity The number of stock or mutual fund shares bought sold or sold short For fixed income securities this number reflects the face value of the security you bought or sold For options this reflects the number of option contracts you bought or sold For monetary transactions this field will display a zero Symbol The 1 5 letter abbreviation used to represent the security For monetary transactions this field will display a zero Description This field provides a description of the security or an explanation of the transaction This indicates the price you paid or received for the purchase or sale of a unit of the security For example if you bought 10 shares of ABC at 90 a share the price would be 90 For monetary transactions this
79. down the box NOTE It is important that you do not use the Live Help window in the Schwab trading platforms to request authorize or effect the purchase or sale of any security or commodity to send fund transfer instructions or to effect any other transactions Any such requests orders or instructions that you send will not be accepted and will not be processed 56 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 TRADING 57 StreetSmart Pro User Manual Trading Overview 58 TRADING OVERVIEW Trading Window The Trading window is the primary order routing interface in StreetSmart Pro and was designed to put important information at your fingertips to help you act on a security s most relevant up to date data In addition to trading and viewing quotes for stocks and indices approved traders can access quotes and trading capabilities for single and multi leg options T Trading 1 00000000 AMAZON COM INC NASDAQ G X File Settings Stocks Options Adv Opt T Change 0 07 018 Volume 2 893 219 Last 38 70 Open 3858 Hil 3913 Ratio 28x59 Bll 1000 4 close 38 77 Lol 38 46 Spread 0 01 L 3873 4 smatex gt SpecCond Sell Buy Limit DAY wif Sell All Short Save Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading f Trading 1 AYBT APPLIED MATERIALS INC NASDAQ EBR Stocks Options
80. field will display 0 00 This indicates the total amount of the transaction Numbers inside indicate money was deducted from your account Numbers without the brackets mean money was deposited into your account Displays the commission paid for a specific transaction If no commission applied or if the trade was executed today you will see an asterisk 292 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 MARKET DATA TOOLS StreetSmart Pro User Manual Watch Lists WATCH LISTS The Watch List allows you to monitor a wide range of streaming market data Last Volume etc about securities of interest to you Customize the data you display in your Watch List and save as many different lists as you want To open click 6 in the Toolbar StreetSmart Pro software allows you to create as many customized watch lists as you like with up to 100 symbols per watch list And you can have as many as six watch lists open at a time Choose the built in watch list format or customize the stock data any way you want it to appear on your desktop In addition to having six watch lists you can also have up to 20 tabs per window allowing up to 120 Watch Lists running at the same time Each tab can be setup to copy the setting from another tab or be unique to the tab itself Watch List Sample Stocks stk File Settings Tabs Indices Stocks Volume Stock symbols and price an
81. for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients To Open the Order Detail Window There are three ways to access the details of your orders e Highlight the order and double click on it e Highlight the order right click on it then select Details e Highlight the order and select Details from the Orders drop down menu CHANGING OR CANCELING ORDERS Changing Orders To change a SmartEx order go to the Account Detail window Order Status tab and either right click on the open order then select Change or click once on the order to highlight it then click Orders gt Change A pop up box will appear prompting you to modify your order Note that you cannot change the order type of a SmartEx order to or from a trailing stop order after the order has been submitted You must first cancel the order and then resubmit with a different order type 232 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Direct Access orders can never be changed Canceling Orders You can request to cancel open orders via the Order Status Tab All Open orders have a green box in the left most column Because of the speed of execution and the short life span of market and marketable limit orders canceling these orders m
82. in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Sell Writes amp Unwinds Of the kinds of multi legged orders that can be placed as a package using this feature sell writes and unwinds are unique in that one leg of the trade is for an option the other is for an equity Because the option leg trades on an option exchange and the equity leg on a separate equity exchange the circumstances in which the Net price indication will be better than the prices for the separate legs combined will be uncommon Please note the indicative prices are not firm quotes and
83. is Change from Close but can be switched to Change from Open by going to the Account Detail window Settings gt General Within this window there are three pull down menu options File Allows you to either print or close the window Settings Allows you to change the following General Settings of the window e Display the Change column in either Text or Graphical format Text displays the numerical change from open or close Graphical displays the Change column as a horizontal graph bar with negative change displayed on the left in red no change as a magenta dash on the middle dividing line and a positive change on the right in green When Graphical Display format has been selected you can change the Graph Settings fields Unit Increment determines the point change that the vertical lines Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 225 StreetSmart Pro User Manual Messages SETTINGS eae represent Unit Width determines the number of pixels between each vertical line e When checked the Auto Sorting checkbox will automatically sort the column based upon the column you have clicked on e The Data option allows you to display the change column in either Point Gain or Point Gain Position Allows you to place a closing trade for the selected security Check Messages for the status of your orders and their execution as well as information about alerts and the market in
84. log back on please check the alert tab to make sure that all your alerts are still open and your messages and order status in the event that your conditions were met and a conditional order was sent You can enter either positive or negative values with the Increase to and Decrease to criteria depending upon your goal The Trailing Stop feature is only available with Gains and Loses alerts The Trailing Stop feature should not be confused with the Stop Order order type All alerts with Trailing Stops will be entered as a Market or Limit order types Alerts with conditional orders can execute trades based on bad or out of range time and sales prints You will be responsible for any orders that are executed even if they are based upon inaccurate information To minimize possible issues the Bid or Ask variable should be considered when sending conditional orders for NASDAQ stocks and the last Trade Price variable should be considered when sending conditional orders for Listed securities Account Detail amp Alerts NOTE This is not a guarantee that orders will not be sent based on bad prints and will not completely remove the risk of alerts firing based on inaccurate data P amp L Alerts are triggered off of the Bid price if you are long the security or Ask price if you are short the security Alerts for indices should only be set up using the variables Trade Price Change from Open and Change from Close Although you can c
85. may not be available when an order is sent for execution Sell Write In a Sell Write an investor sells a stock short and simultaneously writes puts against it If the puts expire out of the money the investor will have collected the premium of the option he is effectively generating income against his short position Additionally the investor will participate in any drop in the security down to the strike price of the option If the option expires in the money it will be exercised and the investor will have to buy back his shares at the option strike price On the upside the underlying security has to rise further than the collected premium before money is lost so the written put also provides a limited amount of upside protection This strategy is different from covered put writing only in that the investor does not have a short position in the security prior to selling the option contracts rather they are done at the same time For use when investor anticipates e Flat to Slowly dropping market Financial Characteristics Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 125 StreetSmart Pro User Manual e Maximum Loss Stock price premium for written put In addition investor has opportunity cost of stock dropping below the strike price of the put e Maximum Gain Put premium plus stock decline down to the strike price of the put e Cash credit from put premium Objectives e Modest ris
86. meet pre defined technical analysis parameters Instead of watching only a few charts with a few studies the Strategy Ticker tool can monitor large quantities of data for all NASDAQ and NYSE AMEX stocks indexes and or a user defined symbol list To open the Strategy Ticker click Tools gt Start Tool in the main menu and select Strategy Ticker You select the strategy and time period the Strategy Ticker tool bases its scans on and it returns a real time streaming list of securities and indexes as predefined strategy signals are generated The technical strategies available are similar to studies or combinations of studies in Charts but are programmed to display a notification in the Strategy Ticker window of a possible upward trend or downward trend based on selected strategies H Strategy Ticker Fie Settings Symbol Trend Price Strate Barsi Time 20Da 5Dav Open Close Open Close 2 22 Mov Avg5 Min 10 30 11191935 166846 al 25 74 Mov Avg5 Min 10 30 1184948 113429 25 74 Moy vg5 Min 10 30 1184948 113429 16 35 Movy vg5 Min 10 30 11142832 148008 16 35 MovAvg5S Min 10 30 11142832 148008 16 35 MovAvg5S Min 10 30 11142832 148008 16 35 MovAvg5S Min 10 30 11142832 148008 16 35 MovAvg5S Min 10 30 11142832 148008 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or di
87. not operational for after hours trading Order Routing Order Types Description e Matched against existing orders on the NASDAQ Single Book If no match found will post to the book Market e Order is sent at the inside bid or ask Time In Force Description 104 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Day Orders may be sent starting at 9 30 A M and will expire at 4 00 P M ET Other SuperMontage Features NASDAQ Single Book NASDAQ has integrated SuperMontage INET and BRUT branded market data facilities into a Single Book While the integration does not impact the existing order routing venues and order types the migration results in Level II data display changes within StreetSmart Pro The software consolidates SIZE BRUT and INET quotes into one INET quote at each tier Visit the NASDAQTrader com for more information on the NASDAQ Systems Integration AUTO CANCEL SETTINGS Most Direct Access orders while designated as day orders are only active in the market place for up to 3 minutes While each route has its own rule regarding how long an order remains active until it is canceled for going unfilled the StreetSmart Pro software provides an automatic order cancel feature for your Direct Access orders This cancel feature may protect you in a fast market and will also provide you with protection in the event of a network or system outage Auto cancel
88. on the chart to draw a Fibonacci Fan line Read more about Fibonacci lines in the Trend Lines topic Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 53 StreetSmart Pro User Manual Fibonacci Arc Click the button and then click on the chart to draw a Fibonacci Arc line Read more about Fibonacci lines in the Trend Lines topic VAP Click to show lines bars on the chart where the tems Volume Average Prices have occurred Click to add a Conditional Order or Alert on the ee eee in the most recently accessed Chart window Open the Online Help directly to information on using Charts in StreetSmart Pro 54 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Toolbars STATUS BAR The Status Bar displays at the bottom of your window and indicates server and routing venue status trading session and whether you have Caps Lock and Num Lock enabled INET ARCA BRUT BTRD ONTD SM Current Session Standard The two lights indicate the flow of data to your computer from the servers The first one indicates the status of your connection to the Account Server and the second indicates status of the chart Level II and other data They will turn red if you lose your connection to either the data servers or the account servers 0830 30AM NUM Shows fully logged on and functional 0830 30AM NUM Shows logged off with no data
89. or options and certain listed securities are available for trading during the Extended Hours Session at Schwab Unexecuted limit orders Unexecuted extended Like orders placed during placed during the day hours orders are the Standard Market session do not carry over canceled at the end of Session unexecuted to the Extended Hours the session and do not shares are either auto Session carry over to the next canceled or remain on standard market or the books of the ECN Extended Hours Trading until the end of the day if Sessions you have changed your Auto Timeout setting to zero In general higher Lower trading activity Lower trading activity trading activity means may result in lower may result in lower more liquidity and a likelihood of order likelihood of order greater likelihood of execution plus wider execution plus wider order execution spreads and greater spreads and greater price fluctuation price fluctuation NOTE Direct Access order destinations do not make a distinction between the standard session and the extended hours sessions Orders can be sent anytime during the ECN s or NASDAQ s hours of operation Also be aware that while some ECNs accept market orders this is usually only during the standard session between 9 30am and 4 00pm ET Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 145 StreetSmart Pro User Manual Order Status ORDER STATUS The Order Status t
90. orders for the option that is currently loaded Call Put Select whether to view the Call or Put for the current option Y Option Symbol Shows the volume for the current option on each Volume exchange Level II Shows the depth of all bids and offers in an option Each line shows the exchange ID the price at which they are bidding or offering and the number of contracts they are making available at that price TIP By going to Settings gt Colors you can specify unique colors for the different types of quotes displayed in Level II such as Non Firm Quotes and Auto Executing Exchanges Time amp Sales Shows every trade being reported as well as the share size of the trade and the time of the trade Time amp Sales is color coded Green Prints at the inside Ask Red Prints at the inside Bid Prints in between the inside Bid Ask Yellow Prints above the inside Ask Purple Prints below the inside Bid Chan bib Inside quote change ADVANCED OPTIONS Advanced Options Overview 116 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading The Advanced Options tab simplifies the process of entering Complex Option orders By displaying potential pairings based on your spread ranges expiration months or by amounts in at out and near the money all entered at one net credit or debit price Complex Option strategies can be entered more quickly and with potentially less market risk than by
91. paid to hold his long position Objectives e Generate income from the short positions e Benefit from the greater rate of time decay of short term options vs longer term options e Potentially realize any gains from a movement in the underlying security after the near term option expires EXAMPLE Calendar Spread An investor feels that stock XYZ which is trading at 60 will trade at this price for at least the next 3 weeks and then might rally The investor could sell the June 65 Calls trading at 2 10 and buy the July 65 Calls trading at 4 10 The net debit to the account would be 2 or 200 If XYZ is below 65 at June expiration the short expires worthless leaving the investor with a simple long position in the July 65 Calls that he can maintain simply sell or spread off with other July options The short term breakeven price cannot be calculated exactly The long term breakeven price after the June expiration is calculated by adding the net debit of the spread to the strike price of the long option Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expirati
92. price is received e Previous Close Calculates change from the previous day s close received from the exchange DISPLAY SETTINGS Display Aggregate Quotes When checked displays an aggregate of the top 20 price levels above your Level II montage Hide Primary if Book is Displayed If checked for any ECN Book data that is displayed see Displayed Bid Ask Quotes below the primary quote for that ECN will NOT display in Level II This eliminates the display of duplicate quotes during the standard session Remove Stale Quotes Filters out stuck quotes during market hours Show Directional Quote Change Arrow If enabled in your Trading window settings you may see some small up and down arrows in the Level II area of the Trading window What these arrows indicate is the direction that market participant just moved in relation to the inside price For instance if Market Maker GSCO is on the bid at 65 25 but backs off to 65 125 a down arrow will appear at the new price level If GSCO moves back up to 65 25 an up arrow will appear Similarly if GSCO is on the ask at 65 25 and moves up to 65 35 an up arrow will appear If GSCO merely refreshes his quote no arrow will display This option will be grayed out if you are not enabled for Level II Show Equity Quote Volume in 100 s If unchecked the full volume for a quote will display If it is checked the quote will display without the last two zeros
93. price of the written call at expiration the investor will retain the initial amount received to establish the spread However if the security increases in value the investor may suffer a loss The spread strategy caps the maximum value of this loss at the difference between the two option strike prices involved in the transaction less the net premium received when putting on the spread Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 133 StreetSmart Pro User Manual For use when investor anticipates e Declining market security depreciation Financial Characteristics e Maximum Loss The difference between the strike prices less amount received when establishing the spread e Maximum Gain The net premium received e Cash credit Objective e Speculative income generation The maximum loss on a bear call spread is limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the high strike call the maximum loss is no longer limited There is an additional risk associated with the expiration weekend If the short call is assigned while the long is not exercised for example the stock finishes between the two strikes the investor ends up with a short position in the stock Good news during the weekend could force even greater losses on the investor before he can exit the short equity position A margin account is required EX
94. price will activate the order However once activated the stop limit order becomes a limit order and can only be executed at the limit price specified by you or at a better price Thus you are Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 111 StreetSmart Pro User Manual not guaranteed an execution with a stop limit order DAY FOK Day Order Will cancel at the end of the day Fill or Kill Requests an immediate fill for the entire number of contracts similar to an All Or None If the entire number of contracts is not available the order will be immediately cancelled Immediate or Cancel Requests an immediate fill for any number of contracts that may be available with the possibility of a partial fill Any remaining contracts that are unfilled will be cancelled Good Til Cancel Order will remain live until it fills is rejected or is canceled OPTION TAB SETTINGS Options tab settings can be accessed through the Settings menu of the Trading window or by right clicking on an option symbol In both cases you must have the Options tab open to access these settings RIGHT CLICK MENU SETTINGS e Option Data Displays the option multiplier exchanges on which the contract is trading and other advanced data Option Data DLOKF DELL Nov 05 30 00 Cal Basic Option Data Last Sale 0 65 Size of Last Sale 3 Up T CBOE x ISE Tick Exchange Net Change O
95. purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients e Print Signals Alerts you to trades taking place at the inside bid ask as well as trades below or above the inside bid ask by a specified amount for the securities in your symbol list You can also specify the minimum quantity a trade must have before its print signal is sent to the Scan Ticker e Block Signals Alerts you to large quantity trades on NYSE NASDAQ or both You can specify the minimum block size you wish to be notified about as well as whether to receive signals about all available securities or just those in your symbol list 312 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools e Quote Signals Alerts you to changes at the inside bid ask for the securities in your symbol list and identifies whether the change was positive or negative by coloring the quote in green or red respectively e Spread Signals Alerts you to stock whose inside bid ask prices are crossed and or locked You can also specify that spread signals where the spread is greater than a specified amount are not displayed To add symbols to the Scan Ticker e Click File gt Load Stock List and select a stock list to load or e Right click in the window and select Add Symbol Enter the
96. see the Delta change from its current level of about 68 up to 90 This tells you that while it only earned 77 for every dollar so far additional moves to the upside will yield about 90 for every dollar if it continues to go up Hypothetical Option Pricing Input Output Call Put Strike Price a Option Value 0 150009 0 651599 Share Price 1848 Delta 0 288242 0 711403 Expiration days 12 Gamma 0 400677 0 400677 Volatility 25 418397 Theta 0 012520 0 010988 Interest Rate 2 4 Vega 1 143497 1 143497 Dividend Yield 1 08 Rho 0 170193 0 453643 Pricing Method Black Scholes OK Cancel SETTINGS MENU OPTIONS Option Page Columns You can rearrange Options tab columns by either right clicking on the column and selecting a different column or by adding columns See the Options Tab Columns topic for directions Option Greeks Settings Greeks indicate how fast an option price is changing relative to parameters such as time underlying stock price volatility etc o Pricing Method Select from Black Scholes Barone Adesi Whaley or Cox Ross Rubinstein o Interest Rate Defaults to the 3 Month Treasury I rate Index rate but you can select User Defined Rate and change the interest rate to any you wish Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 113 StreetSmart Pro User Manual Option Greeks Settings Pricing Method Black Scholes v Intere
97. select the sound file to play and or e Check Switch to the News Watch tab to have the news window display the News Watch tab when news you are watching for arrives News Watch Alerts IV Play this sound file 08_Sound wav gt T Switch to the News Watch tab OK Cancel 342 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 STOCK SCREENER StreetSmart Pro User Manual Stock Screener Overview Find possible trading opportunities with the Stock Screener a powerful platform based screening and signal generating tool Match the screening criteria to your strategies with over 140 available filtering query choices Select from a text and or graphical view with the List Display To open click in the Toolbar The key to creating useful queries is understanding which quantities and values to include in the query to get the desired results For instance if you look for stocks that are trending upward you must understand which quantities are considered trend indicators and what characteristics of these quantities determine the direction of the trend In other words it s not enough to just know that On Balance Volume is a trend indicator you must also know that positive OBV indicates that the trend may continue There are many resources outside of the scope of this online help from which to learn about these indicators Using the Education Weblink icon b located on the too
98. selling of call options to open a position This strategy is also commonly referred to as Long or Short Calls Generally these two strategies are speculative in nature Long Call A strategy consisting of the purchase of a Call option This strategy is generally used to speculate on the upward move of the underlying security or index For use when investor anticipates e Upward market direction security appreciation Financial Characteristics e Maximum Loss Debit amount paid for the option e Maximum Profit Unlimited e Break Even Strike price of the option plus the debit amount paid for the option Objective e Speculative gain The maximum loss on a straight Call is limited as long as and only as long as the investor does not exercise the long call There is an additional risk associated with the expiration weekend If the long call is exercised the investor ends up with a long position in the stock Bad news during the weekend could force even greater losses on the investor before he can exit the long equity position Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 119 StreetSmart Pro User Manual EXAMPLE Long Straight Call Currently XYZ trades at 25 share The investor employs the strategy of buying one in the money call strike 20 for 6 00 share 1 contract 600 Using this strategy the investor pays a cash debit of 6 00 This is the maximum loss the investor can incur
99. sending this order will be automatically submitted for execution once your trigger conditions have been met After clicking OK below you can only modify or cancel your alerts by accessing them in the Alerts tab of the Account Detail window By clicking OK below you acknowledge your understanding of this message and accept sole responsibility for pour orders USING ALERTS Alerts can be set up directly through the Alerts tab in the Account Detail window If you typically use the same criteria for all your trades you can also use one of the standard templates or create your own Alert Template Alerts displayed in the Alerts tab can be in one of two states Active or Inactive Alerts in active status will fire when the conditions are met Once an alert fires it will automatically become Inactive You can reactivate or deactivate an alert at any time during your session Retrieve a Saved Alert You can access previously saved alerts by 1 With the Alerts tab selected in the Account Detail window click Alerts gt Load from the menu 2 Click on the previously saved alert file and select from the following e Yes Adds the alerts to your existing alerts e No Replaces the contents of the Alerts tab with the alerts in the selected file e Cancel Makes no changes and allows you to exit the process 3 The alerts appear in the Alert tab and will be inactive Save All Alerts to a File You can add all of your alerts to one file by cli
100. serves no purpose Conditions that cause the alert to fire Alert will fire if Volume equals or exceeds 1 000 000 shares Although you can create this alert it will never fire because Volume never decreases during the market session Alert will fire if 1 000 000 additional shares are traded than the existing Volume at the moment the alert was established Although you can create this alert it will never fire because Volume never decreases during the market session Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trade Price Al erts Account Detail amp Alerts Scenario You bought 1000 shares of stock at 30 The current Bid is 31 and the current Ask is 32 Last Trade Price was 31 Level of Complexity Intermediate Intermediate Intermediate Intermediate Trade Price Trade Price Trade Price Trade Price Trade Price Trade Price Increases to Decreases to Gains Loses Gains Loses Value Points Shares 30 Is Trailing Stop Available Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Conditions that cause the alert to fire Alert will fire if the last Trade Price rises to 33 or more Alert will fire if the last Trade Price declines to 30 or less Alert will fire if the last Trade Price rises 2 points to 33 Alert will fire if the last Trade Price
101. shares the investor receives a cash credit of 400 00 To break even or make a profit the stock must trade between 21 00 share and 29 00 share If the stock increases or decreases past these prices the investors suffers a loss The maximum profit the investor can earn 4 is if the stock closes at exactly 25 at expiration At that price the investor would retain the entire premium 130 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Short Straddle Gain Loss at Expiration a i 3 a lt 20 22 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option t
102. slower less volatile indicator that simply adds an additional degree of smoothing or moving average period to the original D You can change the period used in the calculation from the default of 14 periods 3 periods and 3 periods For calculation purposes D Slow is an SMA of D above Part of the stochastic indicator along with D Shows the price level of a stock in relation to its price range over a given period You can change the period used in the calculation from the default of 14 periods The formula for an n period K is Close Lowest Low h Lastin Periods HigkestHig hinLastnPeriods Lowest LowinLastn Periods K 100 Plots the Stochastic D line of the RSI Relative Strength Index to represent the level of the RSI indicator relative to its range over the number of periods you specify Default of 14 Stochastic and RSI periods as well as the default Slowing Factor of 1 can be changed You can also check the Ten Grid Lines box to display lines from 0 1 to 0 9 instead of two lines at 25 and 75 The formula for an m period stochastic of an n period RSI is Latest RST LowestRSiinLastmPeriods CURE 00 E 1al Highest RSiinLastmPeriods LowestRSinLastmPeriads 178 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts Volume Simply the number of shares or contracts traded during a specified time Volume SMA frame e g hour day week month etc You ma
103. symbol click OK and the Scan Ticker will start scanning for activity in that stock To delete symbols from the Scan Ticker e Click File gt Clear Stock List to delete all symbols from the ticker or e Right click in the window and select Remove Symbol Enter the symbol click OK and the Scan Ticker will quit scanning for activity in that stock FILE Load Stock Selecting this feature will allow you to load a previously saved List Stock List into your Scan Ticker Save Stock Selecting this feature will allow you to save your current stock List As list to a file on your computer which you can load later Clear Stock Clears the current stock list so that you no longer receive data List on those stocks Scan Ticker will remember the last ten 10 stock list files you have opened To toggle between files click on any of them Closes the Scan Ticker window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 313 StreetSmart Pro User Manual SETTINGS General Print Signals oa Prints Bid _v Prints lt Bid Print signals at least 0 1250 H below Bid or above Ask Shares 100 1k 10k Stock trades with a minimum size of 1000 pen pent be Block Signals Use Symbol List M AINYSE IM AllNasdag Shares 100 1k 10k Stock tades with a minimum size of 1000 z a n Quotle Signals EE ES DE ES Spread Signals F Dorit display alerts with a spread greater than 10 0625 Cancel
104. system failures like a computer crash or network disconnection those alerts will be held on the server for 10 minutes only If you do not log on again in 10 minutes the alerts are automatically removed from the system If your alert is triggered during that 10 minutes and you are still not logged on the alert will not trigger or send the order Alerts established with conditions that have already been met will fire immediately after the alert is set When placing a Conditional order where you specify a certain number of shares to trade if the tradable quantity of your position is less than the specified number the software will send the order for the lesser amount instead of not sending the order due to insufficient shares available to trade EXAMPLE You have 700 shares of AAPL with a trailing stop active that will close 1000 shares if the bid loses 05 points When the bid drops 05 a SmartEx market order for 700 shares will be sent as opposed to the software trying to send 1000 shares and rejecting the order because you don t have sufficient shares to cover the trade The same will hold true if you 21 StreetSmart Pro User Manual are short 1000 shares of AAPL and you try to buy 1500 shares using a conditional order e After an alert has triggered it will automatically be deactivated The same alert cannot trigger more than once without being reactivated first e Alerts with conditional orders to close sell if long or buy if s
105. the chart and will allow you to make changes to both the Strategy details and the chart display Show Strategy Once an initial strategy has been applied to the chart you can use Show Strategy to hide or show the strategy on the chart Strategy The Strategy Performance Details window breaks down the Performance details and statistics of the strategy being tested in the Details Chart window Select to change your cursor to display a crosshair when you click on the chart The Crosshair pointer can help you pinpoint prices on a chart more easily than when using the regular cursor Select again to turn off Crosshairs Allows you to zoom in on a smaller area of a chart without having to change your Chart settings Click Zoom In Click and hold the mouse button on the point within the chart where you wish to start to zoom in Drag your mouse across to the point where you wish to end the zoom in and release the mouse button TIP Right Click Charts Shortcut Right clicking on a chart opens a menu allowing you to e Recent Stories for Symbol e Research Ext Quote for Symbol e Apply an Alert to Symbol e Change Symbol e View Time Lines Price Lines VAP Volume At Price and Info Window e Chart Type Monthly Weekly Daily or Intraday e Show all Data e Trend Support and Resistance lines e Tools Studies Strategies Crosshairs Edit Tick Data Zoom in e Hide Show Menu 160 Copyright Charles Schwab amp
106. the chart for that stock will also appear in the charts you select from this list The settings for the chart will stay the same but the stock it represents will change TIP You may link one chart to multiple Trading windows e Other Trading windows Click on OK 3 Every time a stock is entered into the Trading window the items linked will display that stock s information Clear Symbol Clears all symbols from the Trading window Symbol field List and drop down Click to change fonts Through the Color option you can change the background ECNs watches Market Makers you specified in the Trading window General Settings to Watch and Time amp Sales colors Click on the color wheel button g to display all the color choices Price Levels Custom v inverted Color Rotation Repeat Color Scheme PEE C Repeat Last Color Change the Price Level Color Scheme 1 Select from the drop down list whether to use the Custom Traditional Earth etc color scheme An example of the colors will display at the bottom of Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 81 StreetSmart Pro User Manual the window 2 For Custom click on a level and then click the color wheel button to select a new color for that level 3 The Price Level scheme can also be inverted to view the Level II data in black over a red background To invert check the Inverted box with the mouse 4 Click on Color Rot
107. the entire period and closes above it Up gaps can form on daily weekly or monthly charts and are generally considered bullish A down gap forms when a security opens below the previous period s low remains below the previous low for the entire period and closes below it Down gaps can form on daily weekly or monthly charts and are generally considered bearish Good Til Canceled GTC Instructs the broker to keep an order open until it is either executed or expires At Schwab GTC orders remain open for 60 calendar days unless filled or you request that it be canceled before that time Halted Securities Occasionally trading on a given security may be suspended due to a variety of conditions including news and corporate actions If the security you are attempting to trade has been halted you can place an order but it will not be eligible for execution or in force until the trading halt is lifted If you have an open order for a security that subsequently is halted your order will be eligible for execution after the halt is has been lifted Please be aware that when the security resumes trading it may be at a price significantly above or below the most recent trade price Head and Shoulders The Head and Shoulders pattern is one of the best known of the reversal patterns At a market top three prominent peaks are formed with the middle peak or head slightly higher than the two other peaks shoulders When the trend line neckline con
108. the options in the drop down menu Click OK Go to Chart Studies for information on each available study Trend line Select the Type of trend line to display Go to Trend Lines for more information on which Trend lines are available e Type a label for the trend line so that you can identify it on the chart In the chart below we have identified an upward trend e Right click on the label to Edit or Delete the line Adds a horizontal GREEN line wherever you click on the chart to indicate the Support levels you want to identify in the chart you are viewing Resistance Adds a horizontal RED line wherever you click on the chart to indicate the Resistance levels you want to identify in the chart you are viewing Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 153 StreetSmart Pro User Manual SETTINGS General Data Options Chart Type v Market Hours a30 1600 Range days ps SP y T Che Overlay Symbol _ sid T Use m Display Options Graph Style Candlestick F Outline Overlay Style Line Graph Line Width 1 H Study Line Width 2 H Data to show 120 Days 7 Show all data Price scale s fAuto linear X F Show Price Scale on Left MV Show Last Trade Label MV Show High Low Open Close values on chart Chart Type Choose the period the chart will be based on Monthly Weekly Daily Intraday Range days 154 Copyright Charles Schwab amp Co
109. the ratio of the average up closes for the last 30 days not including today if prior to close divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 50 Day RSI Relative Strength Index indicates the degree of positive and negative movement by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 49 days using today s Current Price for the 50th day divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 50 Day RSI from Relative Strength Index indicates the degree of Close positive and negative movement by the stock on a Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 359 StreetSmart Pro User Manual scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 50 days not including today if prior to close divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 K Along with D is part of the stochastic indicator Shows the price level of a stock in relation to its price range over a given period D Along with K is part of the stochastic indicator Shows the degree of smoothing or moving average period of K D Slow Similar in principle to D above e
110. the strike price of the call e Cash credit from call premium Objectives e Modest risk mitigation and income generation EXAMPLE Buy Write Currently XYZ trades at 25 share An investor would like to participate in some of the upward movement in the stock and to generate additional income at the same time Using the Buy Write strategy the investor buys the stock 100 shares and sells one out of the money call 30 strike price for 3 00 per share for a total cash credit of 300 00 If the stock appreciates past 30 00 share the total gain is capped at 800 00 The stock must fall below 22 the breakeven price before the investor loses money so the short call provides limited downside protection Buy Write Gain Loss at Expiration 1 000 800 600 400 200 0 200 400 600 800 1 000 stock covered call Fors H ra ae K 5 Ga lt 15 17 19 21 23 25 27 29 31 33 STOCK PRICE in dollars 124 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Unwinds Unwind is the term used to refer to the order that closes out the positions opened in a buy write strategy The unwind for the example in buy writes above would be to sell XYZ and to buy to close the 30 short call Unwinds should be viewed more as a closing transaction than as a true option trading strategy Commissions taxes and transaction costs are not included
111. to 20 10 If the order is not executed it will not update beyond the limit price and will remain posted at Market Peg Pegs the order price to the ask if buying or to the bid if selling meaning the order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price Orders may be adjusted a penny up or down to avoid locking the market EXAMPLE 20 10 XYZ is currently quoting at 20 bid x 20 05 ask A Primary Peg order to buy XYZ with a limit of 20 05 will be submitted at 20 If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 05 If the order is not executed it will not update beyond the limit price and will remain posted at 20 05 Primary Peg Pegs the order price to the bid if buying or the ask if selling OTC securities or the best exchange bid ask for Listed securities The order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price EXAMPLE 102 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Description Can be entered after 7 00 AM ET and expire at the end of the extended trading day 8 00 p m ET Portions of the order not filled immediately upon reaching the market are canceled Special Conditions Description Min Qty A special condition that specifies the minimum execution quantity the client wil
112. to ECNs Unlike orders sent to Schwab for execution direct access orders sent during the extended hours can remain on the ECN s book for all sessions if you have changed your ECN Auto Timeout setting to zero This means they will not be outed or canceled at the end of the Pre Market session nor at the end of the standard trading session ECNs have one trading session which lasts from the time they open for business until their designated closing time NOTE Listed securities participating in the extended hours sessions and all short sales will continue to be routed using Schwab s Extended Hours offerings EXTENDED HOURS TRADING VIA SMARTEX Extended Hours Trading is made possible by computerized order matching systems known as ECNs or Electronic Communications Networks Trading Sessions Schwab s Extended Hours Trading offering has two components the Pre Market and the After Hours sessions Both sessions are independent from the Standard Market Session e Pre Market Session Orders can be entered from 8 05 p m on the previous trading day to 9 15 a m ET but trades are not eligible for execution until the session officially opens for trading at 8 00 a m ET e After Hours Session Orders can be entered from 4 05 p m to 8 00 p m ET but trades are not eligible for execution until the session officially opens for trading at 4 15 p m ET e Separate trading sessions do not apply to Direct Access orders e Schwab reserves the righ
113. to get more details about your Margin Buying Power Balances Tab For a Margin Account with Day Trading Buying Power Account Detail 00000000 Eile View Settings Alerts Order Status Saved Orders Alerts Balances Positions Transactions 744 649 28 743 529 54 Using Cash Cash Borrowing 345 865 24 1 102 552 00 Details 345 855 24 551 275 24 551 276 00 497 249 26 369 74 151 783 76 11 033 00 356 898 24 Cash Account Margin Account Total 5 026 99 393 757 05 398 784 04 11 033 00 11 033 00 s 0 00 0 00 0 00 0 00 5 026 99 382 724 05 387 751 04 292 003 29 59 Day Trading Buying Pow 0 00 Month to Date Int Ower 0 00 gt Balances Tab for a Cash account Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 277 StreetSmart Pro User Manual Account Detail 00000000 OF x File View Settings Alerts Order Status Saved Orders Alerts Balances Positions Transactions otal Account alue 4 216 39 oday s Change 0 00 unds Available vailable to Trade 2 062 74 vailable to withdraw 2 062 74 ettled Cash Available to Trade 210 092 00 ash Money Market and Deposit Accounts ash 0 00 harles Schwab Bank N A Deposit Accounts 706 69 2 062 74 Cash Account 2 153 65 otal Securities 2 153 65 Bank deposit accounts are held at the above referenced FDIC insured bank Securities products and services including unswep
114. tools designed to support direct access trading StreetSmart Pro Direct Access provides Level II information into a trading interface that gives you control over the routing targeting and timing of your order This platform is for experienced traders who are comfortable learning to use advanced trading technology to trade NASDAQ securities Direct Access Trading A trading method in which traders have control over the routing and targeting of their orders Direct access enables eligible clients to route orders for execution to the market centers of their choice Depending on the brokerage firm clients may be allowed to direct orders to a variety of ECNs market makers and exchanges In direct access trading there are no intermediaries who can safeguard against poor trading decisions or serve as buffers between traders and sudden changes in market conditions Discretion Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 373 StreetSmart Pro User Manual Allows you to have a displayed price and a discretionary price You can place the order at the price you d like to receive with a discretion amount for the maximum minimum amount you re willing to pay Available for limit orders only EXAMPLE A limit order to buy with a displayed price of 50 and a discretionary price of 50 25 is presented as Price 50 Discretion 0 25 Divergence Divergence means that different technical indicators or indices are fa
115. trade price changes by 10 set this to 10 using the arrow buttons Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 309 StreetSmart Pro User Manual Then when any of the stocks in your symbol list prints a trade 10 higher or lower than the last trade it printed the symbol quantity etc will display in the Print Ticker window The color will correspond to whether it s a negative or a positive change Note however that the increment value trails the trade price so if the price reverses down a few cents but not the full amount of the increment the trade price will be reset to the lower price Symbol Manage the list of symbols in your Print Ticker window from here To add a symbol enter it in the Symbol field and click Add or press Enter To remove click on a symbol and click Remove Click Remove All to clear all symbols from the list Fonts Click to adjust font settings Colors Click to adjust color settings List When checked allows you to maximize screen space while still having quick access to several windows within one window When unchecked you must open several independent windows to view multiple Print Tickers See the Adding Tabs to Windows topic for directions Select to add a new tab to the window See the Adding Tabs to Windows topic for directions Edit tab Select to edit the current tab s settings including the name name and location Delete tab Select t
116. upon a change from a value that is determined at the time that the alert is created If you create an alert to fire when the Bid for a particular security gains 1 point the software will reference the current inside Bid at the moment that the alert was created There are two variable criteria e Gains e Loses Advanced Alerts Profit and Loss alerts Share P amp L and Trade P amp L are advanced alerts that are always based upon two separate calculations involving the criteria that you select The sequence of calculations in a P amp L alert is as follows e First your current P amp L is calculated Trade P amp L and Share P amp L are calculated differently although the end result is much the same Your choice depends on which you feel more comfortable using When using Trade P amp L as a variable you will need to input the cost of the trade vs the per share price When using the Share P amp L variable you will need to input the price paid per share 236 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Original Trade Price The application takes the Original Trade or Share Price that you enter and compares it to the current Bid or Ask at the moment the alert was created to determine your unrealized profit or loss The Bid is used if you are long the security and the Ask is used if you are short the security e Second a calculation is made based upon the criteria you
117. using a Trailing Stop will display in the Alerts tab Use either method of setting a trailing stop depending on your needs and preferences NOTE When placing a Conditional order where the order action is Close and where you specify a certain number of shares to trade if the tradable quantity of your position is less than the specified number the software will send the order for the lesser amount instead of not sending the order due to insufficient shares available to trade EXAMPLE You have 700 shares of AAPL with a trailing stop active that will close 1000 shares if the bid loses 05 points When the bid drops 05 a SmartEx market order for 700 shares will be sent as opposed to the software trying to send 1000 shares and erroring out because you do not have sufficient shares to cover the trade ALERT SETTINGS The Alerts window and the Alert Templates window have the same settings 246 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Alert Option Day Alert Original Trade Points Save As Name Checkbox Variable Criteria Price Value Percent Default Symbol Add Aleit or Conditional Command x Ae Nane Pow I Hosp akasiya bie toai Save as Delat A Condition Peat at sete x Keep alert activeatter Symbol asco x T Option Original Tradd Price logott Conditions Chere Value G bo Trail Panel share P amp L 7 loses x Pan F Trailing Stop ie fiire PSL z e z
118. want new prints to display every time the trade price changes by 10 set this to 10 using the arrow buttons Then when any of the stocks in your symbol list prints a trade 10 higher or lower than the last trade it printed the symbol quantity etc will display in the Position Print Ticker window The color will correspond to whether it s a negative or a positive change Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 311 StreetSmart Pro User Manual Note however that the increment value trails the trade price so if the price reverses down a few cents but not the full amount of the increment the trade price will be reset to the lower price Fonts Click to adjust font settings Colors Click to adjust color settings SCAN TICKER The Scan Ticker alerts you on block trades and print quote changes on stocks and index symbols in real time Streaming real time visual cues show when large players execute a trade affecting market liquidity To open click in the Toolbar The Scan Ticker window consolidates four different types of trade alerts into one customizable window Scan Ticker 1 C Cyber File Settings 107 52 3000 107 52 2300 43 93 107 50 19 63 1000 19 63 1000 107 52 107 52 107 52 107 52 107 52 107 52 107 52 107 52 8000 107 52 107 52 62 56 Stock symbols and price and volume data shown here and in the software are for illustrative
119. will be what displays in the Notes field when you click on a strategy in the Strategy Center This field can be used to document the description of the strategy Lists the name s of the indicator s being used in the strategy and the Trade Action they are indicating e Click Add to apply another indicator to the strategy e You can edit the period deviation and other indicator settings by clicking on the indicator and then clicking Edit This is also where you can change how the trade indicators display in a chart Refer to Editing an Indicator to learn about the fields in the Add Edit Indicator window Multiple Indicators Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 193 StreetSmart Pro User Manual e While it may simplify analysis to use one indicator at a time and then apply multiple strategies to the tool you can have more than one indicator per strategy e When using multiple indicators the indicator at the top of the list takes precedence over each one below it the second highest takes precedence over the indicators below it and so forth e Change the order of the indicators by clicking on the indicator you wish to move and then clicking Move Up or Move Down to change its position in the list Money Money Management tells the strategy to trigger a trade exit Managemen based on a pre determined Profit Exit Stop Loss and or t Trailing Stop percentage If the Money Managem
120. will display in your Order Status tab A customer service representative may enter Short Sell Exempt orders on your behalf in certain limited circumstances The most common instance when this may occur is when liquidating the underlying security where the position is held as either an equity right warrant or convertible In these circumstances the securities are not in an acceptable form for delivery on settlement date Note that you must file an exercise for the right warrant or convertible before your order to liquidate the underlying security can be marked as Short Sell Exempt This action acknowledges that the intent is to sell a position instead of short a stock and is therefore exempt from the up tick rule Please see Up Tick rule for more information VIEWING ORDER DETAILS You can see additional details about your order not displayed in the Order Status tab like detail for individual fills in the Order Detail pop up window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 231 StreetSmart Pro User Manual Order Detail Order Parameters VIBAB IBM Jan 0 110 00 Call Order 2164046 Action Buy to Open Quantity 2 Status Open Date amp Time 12 53 ET 08 30 2005 Price 0 80 Method SmartEx Time in Force Good Till Cancel Special Conditions None Order Activity Action Quantity Price Date amp Time Stock symbols and price and volume data shown here and in the software are
121. will only list stocks with a current Volume greater than their one month average volume choose Volume in the Available Filters list and click the gt gt button to move it to Selected Filters The rest of the query should read Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 347 StreetSmart Pro User Manual 348 Select stocks whose Volume is greater than 1 Month Avg Volume e EXAMPLE 3 To set a filter that will only list stocks that are 0 165 or less off their 52 week high choose Current Price in the Available Filters list and click the gt gt button to move it to Selected Filters The rest of the query should read Select stocks whose difference between Current Price and 52 Week High is less than or equal to 0 165 e EXAMPLE 4 To set a filter that will only list stocks within 2 above their 60 Day Simple Moving Average SMA choose Current Price in the Available Filters list and click the gt gt button to move it to Selected Filters The rest of the query should read Select stocks whose difference between Current Price and 60 Day SMA is greater than or equal to 2 To edit a Selected Filter click on the filter you wish to change from the Selected Filters list Repeat steps 1 3 to add as many as 10 filters per individual query When you are finished building your query click OK You may also view the description of the selected query by clicking on Description Co
122. you want Scroll Bars to scroll through and the scroll bar will appear You can scroll vertically in any active window using the Page Up and Page Down buttons on your keyboard To scroll down the Level II quotes or Time amp Sales screens right click in the frame you want to see and select Show Scroll Bar Find the Name of The name of each window appears on the top bar Stock a Window names and or ticker symbols also appear at the top of the Trading News and Chart windows Maximize Each window has three small boxes in the right corner of Minimize or Close the top bar Windows The first box minimizes the window The middle box expands the window to fit the screen for a better view The third box closes the window Closed windows can be re opened with the Toolbar NOTE Closing your Account Detail window will log you off the software Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 37 StreetSmart Pro User Manual Resize Windows Find Minimized Windows Open Closed or Additional Windows Display or Hide Menu Bars lt Tool gt Help Save Layouts e Move your cursor to the edge of the window you want to resize e When your cursor changes to an arrow hold down the left mouse button and drag the edge of the window until the window is the desired size Minimized windows can be found at the bottom of the frame above the Status Bar To re open a window either double
123. 0 23 6 38 2 50 61 8 100 161 8 261 8 and 423 6 Some of the lines may not be visible because they will be off the scale Fibonacci Arcs This trend line separates the Fibonacci Arcs into a separate view The three arcs which center on the last point of the trend line you draw help you identify where support and resistance may affect the price as a stock trends up or down You can choose to show the percentage labels by clicking Show Levels Best Fit A Linear Regression trend line uses the least squares Regression method to plot a straight line through prices so as to minimize the distances between the prices and the resulting trend line Delete Selected 1 Click on the Trend line you wish to delete 2 Choose Delete Selected Clear All Trend Click to erase all trend lines Lines e Once you have selected which Trend line to draw left click at the spot on the chart where the line should start e Hold the mouse button down and move it across the chart to the end 182 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts point for the line Release the mouse button From the New trend line box go to the Label field Type the name or description as you want it to appear on the chart Click OK From the New trend line box click on the Color palette Select the color you would like to have displayed Click OK once to get back to the New trend line box then click OK aga
124. 0 and beep Trigger If XYZ trades at or below 19 50 then the application will beep Scenario 2 You bought 1000 shares of XYZ at 20 Bid is 19 Your current unrealized loss Trade P amp L is 1000 Depending on your objective you could set up the alert in different ways If your objective is e To limit your loss to 2 000 then enter if Trade P amp L Decreases to 2000 Original Trade Price 20 and beep Trigger When XYZ trades at or below 18 00 then the application will beep e To decrease your loss to 500 then enter if Trade P amp L Increases to 500 Original Trade Price 20 and beep Trigger When XYZ trades at or above 19 50 then the application will beep e Again of 500 then enter if Trade P amp L Increases to 500 Original Trade Price 20 and beep Trigger When XYZ trades at or above 20 50 then the application will beep Both Share P amp L and Trade P amp L logic functions the same way ALERT SCENARIOS Alert Scenarios The following four topics present different scenarios and show you different ways that you can accomplish the same goal You will notice that you can accomplish the same thing with a Basic Alert as you can with an Advanced Alert Scenario 1 Gain Scenario 2 Preserving a Gain Scenario 3 Loss Scenario 4 Minimizing a Loss Scenario 1 Gain You bought 1000 shares of XYZ at 45 e Current Bid 50 e Share P amp L is 5 50 45 e C
125. 0 DELL 32 1 17 04Sell 600 DELL 34 Average Cost Per Share 20 Calculation 500 20 10000 gt 20 per share 25 Calculation 500 30 15000 gt 2500 1000 gt 25 per share 25 note that the sell price is irrelevant 29 20 Calculation 1000 200 400 25 10000 600 32 19200 gt 29200 1000 gt 29 20 per share What the Positions Tab Displays 1 15 04 500 DELL Cost 10 000 1 15 04 1000 DELL Cost 25 000 1 16 04 800 DELL Cost 20 000 25 x 800 20 000 1 16 04 400 DELL Cost 10 000 25 x 400 10 000 1 17 04 1000 DELL Cost 29 200 29 20 x 1000 29 200 1 17 04 400 DELL Cost 11 680 29 20 x 400 11 680 Important Information Regarding P amp L Calculations for your Accounts Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 289 StreetSmart Pro User Manual An asterisk indicates a position with cost data that may be incomplete because it does not include transactions that occurred prior to August 2004 The cost and profit and loss data may also be incomplete because it excludes commissions transaction fees and corporate actions such as stock splits stock dividends spin offs mergers and name changes To correct the cost data select the position and use the right click menu to select the Adjust Cost function Please note that the Account Detail tool is not the official record of
126. 0 p m ET for next day s session After Hours Trading Individual investor orders may be executed from 4 15 p m to 8 00 p m ET Orders can be placed as early as 4 05 p m ET but order execution will not begin until 4 15 p m Orders cannot be placed after 8 00 p m ET Your orders will be processed through ARCA your orders will be in Direct Access Route Comparison for the hours of operation for each routing channel These destinations do not in any way differentiate orders based on the time of day the order is submitted For NASDAQ equities routed to your chosen 144 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading variety of Market Makers destination and ECNs All orders types available Only limit orders are Limit orders and some via StreetSmart Pro accepted subject to market orders are are accepted by Schwab account or security accepted subject to during this Trading specific limitations account or security Session subject to specific limitations account or security specific limitations All order sizes are While odd and mixed lot Maximum order size accepted round odd orders can be accepted limitations vary by and mixed lots their use may channel significantly reduce your chance of finding a matching buy or sell The maximum order size is 5 000 shares You can trade securities Currently most NASDAQ NASDAQ equities only
127. 0 share Long Straddle Gain Loss at Expiration 4 2 0 2 4 g 18 20 22 z W te S rc CG i a l Z lt STOCK PRICE in dollars Short Straddle Investors using the short straddle strategy anticipate that the underlying market security of the options will trade in a narrow range and that large movements in either direction are unlikely A short straddle will typically therefore involve the sale of at the money puts and calls with the same expiration date and strike price The investor receives the premiums for the calls and puts and hopes that at expiration neither the call nor the put will be more in the money than the total premium received The strategy exposes the investor to unlimited losses with the possibility of only limited profits The investor might also sell a straddle at a strike that he she expects the underlying security to move to by expiration For use when investor anticipates e Flat Neutral market for the security e Decreased volatility Financial Characteristics e Maximum Loss Unlimited e Maximum Gain Premiums received in the transaction e Benefits from time decay Objective e Speculative income generation EXAMPLE Short Straddle XYZ trades at 25 00 share An investor believes that the stock will remain flat in the near term He puts on a short straddle selling one 25 call for 2 00 and selling one 25 put for 2 00 Since each contract represents 100
128. 0 share 1 contract 600 The maximum loss is unlimited should the stock prices suddenly rise in price The maximum loss would be calculated by taking the closing price at expiration less the strike price less the credit received on the sale of the option If the stock closes at 32 on expiration there will be a 6 loss 32 20 6 6 loss The maximum profit an investor can 120 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading receive is the credit received when selling the option For example if the same XYZ 20 strike option is sold for 6 and the stock closes under 20 the option expires worthless and the investor can pocket the entire 6 The break even point for the strategy occurs when the price of XYZ is at 26 Short Call Gain Loss at Expiration g S E z 5 2 0 S z7 5 lt o 5 10 15 20 25 30 35 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not sui
129. 00 You can change the number of periods used in the calculation from the default of 15 and you can overlay the study on or underneath the price chart The initial value of an n period RSI is based on the price action for the first n periods Subsequent values are determined using an inductive formula analogous to the EMA formula described earlier RSI 100 UD The formula for the initial value of RSI is F 25 Close Close _ hers ni for all Close Close _ gt 0 1 X and A ae ry for all Clase Close _ lt 0 Subsequent values of RSI are determined using the formula RSZ 100 af e t 1 U n U _ UB where 2 D Lt 1 D DOWN n and where Ear T O 4g OS Close gt 0 and 0 otherwise aids DOWN Close Close i if Close Close i s00 oiher Signal Line Used with MACD You can change the periods used in the calculation from the defaults of 12 26 and 9 Stochastic Part of the stochastic indicator along with K Shows the degree of D smoothing or moving average period of K You can change the periods used in the calculation from the default of 14 periods and 3 periods For calculation purposes D is an SMA of K below Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 177 StreetSmart Pro User Manual Stochastic D Slow Stochastic K Stochastic RSI Similar in principle to D D Slow represents a
130. 06 All rights reserved 0106 5667 401 StreetSmart Pro User Manual 1 Go to the Chart window Menu and choose View gt Info Window to have the window displayed on your screen 2 Drag your mouse to the Info window until you get to the bottom edge of the window and your mouse cursor changes to a double headed arrow 3 Drag the bottom edge of the Info window down to enlarge it This will enlarge the window and allow you to see all of the indications of the studies that you are following ACCOUNT DETAIL FAQ BALANCES How do I view the latest marked to market balances in my account Balances will update when you first logon and then every 15 minutes or 30 seconds after a transaction whichever comes first If you have a Margin account you can find the time of your last update by going to the Balances tab and clicking on the Detail button located near your Margin Buying Power How accurate are the Balances displayed on the Balances tab Balances are updated in real time to reflect both security and cash transactions and intra day price movements Consequently the cash and security balances and the derived figures such as buying power and margin equity should all be an accurate snapshot of your account at the time that the data is refreshed Your positions are updated on a tick by tick basis during market hours It is very possible that the current values in your Balances tab may not match the Positions tab as the Balances tab is st
131. 0MHz or greater 40 MB of available hard drive space 128MB of RAM 56K modem minimum a Cable Modem DSL ISDN line or other broadband service is recommended Internet connection through an Internet Service Provider ISP We suggest using at least a 17 monitor when using the software with one monitor Due to the large number of windows and layouts offered in the software See Customizing Your Desktop you may want to use more than one monitor to display data Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 29 StreetSmart Pro User Manual DOWNLOADING THE SOFTWARE Qualified Schwab Active Trader clients can download the StreetSmart Pro software from the download website Check the site for qualifications 1 When you start the download process you will be prompted to save or open the file Choose Save File Download Ea Some files can harm your computer If the file information below looks suspicious or you do not fully trust the source do not open or save this file File name eetSmartProDomL2_elcap exe File type Application From help sspro schwab com A This type of file could harm your computer if it contains malicious code Would you like to open the file or save it to your computer i Cancel More Info M Always ask before opening this type of file 2 Select the location where you want to save the downloaded file and click Save Save As 2 x
132. 1 or more In this case Trade Price for XYZ must be 16 20 16 plus 0 20 or more Advanced Alert will fire if the change from the Change from Open decreases to 0 80 current Change from Open of 1 minus 20 of 1 or less In this case Trade Price for XYZ must be 15 80 16 minus 0 20 or less Change From Close Alerts Scenario Closing price for equity ABC is 35 Current Trade Price is 36 and current Change from Close is 1 Level of Variable Value Is Trailing Conditions Complexity Points Stop that cause Shares Available the alert to or fire Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 269 StreetSmart Pro User Manual ae Basic Intermediate Intermediate 270 Increases to Decreases to Gains Loses 2 2 2 2 T Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Alert will fire if the Change from Close is 2 or more In this case Trade Price for ABC must be 37 35 plus 2 or more Alert will fire if the Change from Close is 2 or less In this case the Trade Price for ABC must be 33 35 minus 2 or less Alert will fire if the Change from Close increases to 3 or more current Change from Close of 1 plus 2 In this case Trade Price for ABC must increase to 38 36 plus 2 or more Alert will fire if the Change from Close decreases to 1 or less In this ca
133. 106 5667 41 StreetSmart Pro User Manual amp News 1 AMAT A Breaking News Recent Stories AMAT News Watch Symbel Code JAHAT v News Code Rating reiterations for Nov 8 from Briefing com Company Symbol srokerage Firm Reiterations Anadarko Petro APC Lehman Brothers Equal weight Applied Materials AMAT Friedman Billings Outperform Audiocodes AUDC Cantor Fitzgerald Buy Audiocodes AUDC Lehman Brothers Overweight jAudiocodes AUDC Nollenberger Capital Buy Brightpoint CELL Kaufman Brothers Buy Cablevision CVC Janco Partners Accumulate CapitalSource CSE Friedman Out Shoppin ter anto tzgeralg Open News e Right click on the News window headlines and click Open Story Article in a OR New Window Double click on story headline Hide the Right click on the News window headlines and click Hide Menu News Window Menu Read the From the menu select View gt Preview ee Article Right click and select Show Preview Window in the Preview Panel Left click on the News headline to display the news article you want to read in the Preview panel Search the Right click in an article and click Search Article for Specific Topics Print a News Right click in an article and click Print or File gt Print from the News Story window Load a Stock Every stock symbol in a news article is hyperlinked to the Trading into the Window Simply click the symbol you want and it will automatically Trading load into the Trading Win
134. 2 points Advanced Share i Alert will fire P amp L if the Bid rises to 33 or more At that time your Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 261 StreetSmart Pro User Manual Share P amp L has increased 2 points from the value that existed at the time that you created the alert Advanced Share Alert will fire P amp L if the Bid drops to 29 or less At that time your Share P amp L has dropped 2 points from 1 point to 1 point Advanced Share Alert will fire P amp L if the Bid rises to 31 20 or more At that time your Share P amp L has risen 20 from its value at the time that you created the alert Original Share P amp L of 1 plus 20 Advanced Share Alert will fire P amp L if the Bid drops to 30 80 or less At that time your Share P amp L has decreased 20 from its value at the time that you created the alert Share P amp L of 1 point less 20 262 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Note that Share P amp L initializes each day based on the Market Open Price rather than on your original trade price This means that if you are using a Variable of Share P amp L and a Criteria of Gains or Loses and the stock opens significantly higher or lower than the price at which you purchased the stock the initialization value could be applied further fr
135. 47 50 Limit DAY Sell to Close Buy to T Order Entry Level I Data for Underlying Symbol Call Cancel Sell to Open Buy to Close ZON KW ISE CBOE AMEX PCX PHL BOX Yolume Level II and Time amp Sales olume by Exchange The Advanced Options Tab The Advanced Options tab allows approved traders to place multi leg option orders including buy writes rollouts collars straddles vertical spreads and calendar spreads The available tabs depend on your individual level of options approval Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 61 StreetSmart Pro User Manual Trading 1 00000000 S amp P100 INDEX OPT DEX 100 0K File Settings Stocks Options Adv Opt 0Ex 550 10 Write Unwind Rollout Collar Straddle Vertical Sprd Calendar Sprd Combo 7 Day Close XETKH 11110A lt 4 Cancel cal Al Money z 7410 4 r aon Submit Order Bate Open XET LH 10 008 Close Near 7 Open Dec 05 7 Strike Range 0 00 7 5 mbol Call Call Bu Near Sell Far Exch Net MET KT XET LT Buy 400 00 C Sell 400 00 C Buy 400 00 C7 Sell 400 00 C XET KD XET LD Buy 420 00 C Sell 420 00 C Buy 420 00 C Sell 420 00 C XET KH XET LH Buy 440 00 C Sell 440 00 C Buy 440 00 C7 Sell 440 00 C XET KL 7 XET LL Buy 460 00 C7 Sell 460 00 C Commissions taxes and transaction costs are not included in any of the following strategy discussions but can affect fina
136. 6 5667 Reference A pattern on a bar chart The pattern can be as short as several weeks and as long as a year The cup is in the shape of a U and the handle has a slight downward drift Cyclical Stocks Cyclical stocks are shares of companies with businesses that are highly sensitive to economic performance Cyclical stocks tend to perform well under certain economic conditions and suffer during others AIBICIDIJE JFIGJHITIJ KILIMIN JO P IQ RIS T U VI WI X Y Z Daily Range The difference between the high and low during one trading day Day Order An order condition that causes your order to be canceled at the end of the current day s trading if the order has not been executed All Market Orders are automatically Day orders Orders are generally considered to be day orders unless otherwise specified Day Trading Day trading is a style of trading where positions are both initiated and closed before the end of the trading day Compare this to position trading where stocks or securities may be held for longer periods Derivative Instrument A financial instrument or security whose value is based in part upon another security For example a stock option is a derivative instrument because its market value is based in part upon the market value of the underlying stock Dilution Effect on earnings per share and book value per share from any increase in shares outstanding Direct Access Schwab s integrated set of trading
137. 667 Account Detail amp Alerts have selected to view The value of the cash you have invested in the money market sweep fund s you selected for your account For Schwab Investment Accounts interest is earned on any credit balances in the account and is not reflected in the Money Market Fund balance Bank Schwab acts as your agent and custodian in establishing and Deposit maintaining your Bank Deposit Accounts Bank Deposit Accounts Accounts constitute direct obligations of the Sweep Bank as defined below and are not an obligation of Schwab Free Credit Balances will be deposited into Bank Deposit Accounts without limit even if the amount in the Bank Deposit Accounts exceeds the 100 000 FDIC insurance limits For deposit insurance purposes deposits you may establish in one capacity directly with a Sweep Bank or through an intermediary such as Schwab will be aggregated with the Bank Deposit Accounts You are responsible for monitoring the total amount of deposits you have with the Sweep Bank in order to determine the extent of deposit insurance coverage available to you Sweep Bank means the Schwab affiliated FDIC insured bank as referenced in your account statements and disclosed in your account documents into which free credit balances may be automatically deposited pursuant to your Account Agreement Margin The balance of any credits or debits in your margin account Balance Note that with a margin account the balance of
138. AMPLE Bear Vertical Call Spread Currently XYZ trades at 25 share The investor believes the stock will fall and wants to earn income but does not want to simply sell calls because of the risk involved Instead the investor employs the Bear Spread strategy selling an in the money strike 20 call for 6 00 share and buying an out of the money strike 30 call for 1 00 share Using this strategy the maximum loss is the difference between the option strikes less the call premium received 30 20 5 5 or 500 see above The maximum profit an investor can receive is the premium received from selling the call less the premium paid for the out of the money call 6 1 5 or 500 The breakeven price of 25 is calculated by adding the net credit of the spread to the strike price of the short option Bear Call Spread Gain Loss at Expiration i p 3 5 E 2 l lt 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be 134 Copyright Charles Schwab amp Co Inc 2006 All rights reserv
139. AY v If at any point the price retraces the specified Trailing Amount a SmartEx Market order will be routed for the quantity you specified If you place an order to close a position using a trailing stop set to 5 if the bid price increases 9 and then drops 5 the order will be sent at that time The change from the time that the trailing stop was placed would effectively be 4 above where you placed the order Reinvest Dividends Check to reinvest dividends for this security Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 93 StreetSmart Pro User Manual Special Conditions Designate special conditions including e AON All or None e DNR Do Not Reduce for GTC orders only e Min Qty Minimum Quantity e Use only for orders over 300 shares e When checked the amount field can be changed but the amount must be at least 200 shares e Designating minimum shares applies to the first fill only Order Verification is The action button at the bottom of the window Selected should read Verify Order Click it to open the Verification window See Trading Window Menu topic for details Save Button displayed Click to post the order to the Saved Orders tab at bottom of window in the Account Detail window No further validation editing will be done until the order is submitted Order Verification is The action button at the bottom of the window will Not Selected read Place Order Click to submi
140. Avyg15 Min Mov Avg15 Min Mov Avg15 Min Mov Avg15 Min if 190 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 10 40 111193205 966560 10 40 111193205966560 10 30 111193205 966560 10 40 11186750 10 40 11186750 10 40 11186750 10 40 11186750 10 30 11186750 10 30 11186750 10 30 11186750 10 30 11186750 10 30 11186750 214600 214600 214600 214600 214600 214600 214600 214600 214600 eesessssscs i i 1 1 1 1 E 1 1 1 SEeeesserses i i i 1 1 7 7 1 1 1 1 i i 7 Strategy Testing Tools Strategy Center STRATEGY CENTER OVERVIEW The Strategy Center which is accessible from any of the Strategy tools and the Charts is the heart of the Strategy suite of tools It is the window in which you can create save and manage all the strategies you use in the Strategy tools What is a Strategy A strategy consists of one or more indicators such as a price crossover on Bollinger Bands SMA Envelope etc with an associated trade action such as Long Entry Short Exit etc The information you get from each strategy depends on what tool you apply it in For example applying a strategy in the Strategy Tester or in a Chart will apply the strategy for a certain period of time going backwards to see how well the selected strategy would have performed historically for a stock or list of stocks Alternately in the Strategy Ticker and Strategy Matrix the strategi
141. CNs e Listed stocks such as those on the New York Stock Exchange and the American Stock Exchange are routed to one of several ECNs trading listed securities e Finally Options trades are routed to the Chicago Board Options Exchange or other regional exchanges e Review the topic for each routing type to learn details about each routing method or visit the Direct Access Route Comparison topic for a side by side view of each routing method Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 59 StreetSmart Pro User Manual No one method is best in all situations so it is important that you familiarize yourself with the routes available and determine which best fits the market conditions ABOUT THE TRADING WINDOW The Trading Window is the hub of the software where you can place trades and get Level I and II quotes In the Settings menu of the Trading Window you can set up Hot Keys for rapid fire trading as well as general data display settings and much more You can have up to three Trading Windows open at once allowing you to follow several symbols at one time The Trading Window features four tabs Stocks Options Level II Options and Advanced Options The Stocks Tab The Stocks Tab has 3 segments Trading 1 00000000 Amazon com Inc DR File Settings Stocks Options Adv Opt MZ v T Change 0 33 0 72 Volume 3 077 800 Last 4628 Open 4612 Hi 4690 Ratio 21x16 f
142. Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 131 StreetSmart Pro User Manual e Maximum Gain The difference of the strike prices less the cost of establishing the spread Objective e Speculative gain The maximum loss on a spread position remains limited to premium outlay as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the low strike call the maximum loss is no longer limited to the premium outlay EXAMPLE Bull Vertical Call Spread Currently XYZ trades at 25 share The investor believes the stock will appreciate and wants to participate in the upward movement but does not want to simply buy calls because of the expense risk involved Instead the investor employs the spread strategy buying an in the money call strike 20 for 6 00 share and selling an out of the money call strike 30 for 1 00 share Using this strategy the maximum loss is the difference between the premiums paid and the premiums received 5 or 500 The maximum profit an investor can receive is the difference of the strike prices less the cost of the position The breakeven price of 25 is calculated by adding the net debit of the spread to the strike price of the long option Vertical Debit Spread Gain Loss at Expiration m tg pe pa K gl iE A z l lt 16 18 20 22 24 26 28 30 32 34 STOCK PRICE in dollars As
143. Day Close Perf Difference between the Close from 20 days ago and the Current Price expressed as a percentage e 1 Month Close Perf Difference between the Close from 1 month ago and the Current Price expressed as a percentage e 6 Month Close Perf Difference between the Close from 6 months ago and the Current Price expressed as a percentage e YTD Close Perf Difference between the close from the beginning of the year and the Current Price expressed as a percentage Fonts Click on this option to change this window s font settings Colors Click on this option to change this window s color settings The Global Industry Classification Standard GICS was developed by and is the exclusive property of Morgan Stanley Capital International Inc and Standard and Poor s GICS is a service trademark of MSCI and S amp P and has been licensed for use by Charles Schwab amp Co 330 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 NEWS StreetSmart Pro User Manual News Overview The News tool streams real time breaking news right to your platform Scan the headlines read the full story and set up personal news watches integrated with alerts To open click in the Toolbar The News window delivers the latest Dow Jones and Acquire Media Corporation news directly to your desktop You may open up to 3 News windows at a time Using the news window you can e Get break
144. Defaults Print Signals Check the boxes to view prints trades at the inside Bid or Ask or prints less than the bid and greater than the ask e If you check Prints lt Bid or Prints gt Ask specify how much above or below the bid ask you want the print before it displays the signal Also specify the minimum number of shares a stock trade should have before the print displays Block Signals Specify the minimum block size you wish to be notified about using the 100 1k and 10k arrow buttons e You can elect to receive signals about all available securities or just those in your symbol list by checking or unchecking Use Symbol List Also select whether to include All NYSE All NASDAQ or both types of stocks Quote Signals Check the boxes to view quote changes at the inside bid and ask Spread Signals To view crossed and or locked stocks check the appropriate boxes e To hide or display signals where the spread is greater than a specified amount check Don t display alerts and use the up and down arrow buttons to adjust the spread amount 314 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Symbol List Market Data Tools Manage the list of symbols in your Print Ticker window from here To add a symbol enter it in the Symbol field and click Add or press Enter To remove click on a symbol and click Remove Click Remove All to clear all symbols from the list Scan Ticke
145. End of Bar Intra bar Cancel Adding Symbols 1 Click Settings gt Symbol List 2 In the Symbol List window type in the stock or index 3 After typing each press Enter on your keyboard or click the Add button 4 After all the stocks and indices have been entered click OK Saving a Symbol List 1 Click File gt Save Stock List As 2 In the Save window that appears type in the file name you would like to save the list as then click Save 216 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools Strategy Select the Strategies you wish to monitor Click on any strategy Center to view its description at the bottom of the window Strategy Center Selected Suategies A Bolinger Bands 20 2 2 Price Ceos DM DI DMI DI Cross Envelope 21 3 Price Cross MACO 12 26 SL 12 26 9 Cross Money Flow 20 Level 0 Cross Exo 10 Exp 20 Cross Exp 20 Price Crose Exp 200 Price Cross Exp 50 Exp 200 Cross Exp 50 Price Cross Geo 10 Geo 20 Cross Geo 20 Price Cross Geo 200 Price Cross Geo 50 Geo 200 Cross Geo 50 Pree Cross Sin 10 Sim 20 Cross New Ede Copy Delete Notes Strategy thal enters long exts short when the tade price moves above the 14 period Adeaplive RSI and enters short exts long when the tade price falk below the 14 period A
146. Flow Percent normalizes the Money Flow calculation above by Percent dividing by the cumulative volume for the period You can change the periods used in the calculation from the default of 14 The formula for an n period Money Flow Percent is t ps Vat tek MoneyFiow meee aa che fee Ch Cee Fol gt Vol iat x 1 High Low i t x 1 Moving Average While similar to the SMA the exponential moving average uses a Exponential smoothing factor to give more weight to recent prices while allowing all EMA prices in the window to influence the average The default of 20 periods can be changed The EMA formula is an inductive formula that is the value at time t is based on the value at time t 1 and a current amount The formula is _ B Des a he Bae See Pe eee where Price is set to the Average variable you select when you set up the study F Factor can theoretically be any value between 0 and 1 but is generally related to an n period SMA ae by the formula n l Moving Average The average of the last 8 periods close values including current day If Simple SMA current trading session hasn t closed yet the last sale price is used The default of 8 periods can be changed t Price SMA int n 1 The formula for an n period SMA is Moving Average A moving average weighted on the price movement relative to the stock Geometric price so that a 1 increase in a 5 stock is represented on the chart
147. IZABLE BALANCES BAR Select from 20 account statistics to display at the top of your trading window at all times To enable this feature click View gt Balances Bar in the main menu Acct Net Worth by gst Sra Cash EEF areS Avail to Withdraw E ILOA You can select which statistics to display by clicking on Settings gt Balances Bar in the main menu or by right clicking on the Balances Bar and selecting Balances Bar You can also change any of the statistics to another statistics on the fly by right clicking on the name of the stat and selecting a different one from the drop down list More on the Balances Bar ENHANCED PRINTING FEATURES Under the File menu in windows that allow printing a new option called Page Setup allows you to customize your printouts with headers footers grid lines etc LINKS TO SCHWAB COM In the main menu bar click on the Schwab com menu to access links back to various Schwab com features such as research market analysis and much more NEWS ENHANCED NEWS INTERFACE The News window has been updated to be more streamlined and intuitive as well as to include the ability to search for recent news based on News Codes WATCH LISTS NEW WATCH LIST COLUMNS Several new Watch List Columns have been added including the display of market data for Opening and Closing Cross orders NASDAQ and NYSE accept and store on close order types that are executable only at market close Leading up to the 4 Copy
148. If checked and you double click on a Market Maker ID in the Level II screen your order entry fields will automatically set up a SuperMontage order 82 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading If unchecked and you double click on a Market Maker ID the system will automatically set up to send an order at that limit price Pop up Execution Panel Outside Lvl II Will position any order routing pop up windows so that they do not pop up on top of the Level II display Price Increment You can change the increments by which the arrows next to the price field change the price For example if it were set to 0 125 a stock at 20 50 would change to 20 625 when you click the up arrow QUANTITY Save Current Quantity Always Clicking on this option will set the default share size to the share size that is currently in the Share Size field of the Trading window So when you pull up a new stock the share size will remain the same Set Quantity to Open Position If you have an open position in a stock and this box is checked the next time you load that stock into the Trading window the Share Size field will show the number of shares you hold Set Quantity to Default If selected the software will default the quantity field to the specified Default Share Size or Default Contract Size AUTO CANCEL TIMEOUTS Note that changes to these settings are iso
149. If the stock decreases to 19 00 share the long call will expire worthless and the investor loses the 6 premium The maximum gain if the stock price is higher than the strike is the difference between the closing price and the call strike less the call premium spent If the stock is trading at 30 then 30 20 6 4 profit The break even point for the strategy occurs when the price of XYZ is at 26 Long Call Gain Loss at Expiration a amp 3 z 5 gt 0 S Z 5 lt oO 5 10 15 20 25 30 35 STOCK PRICE in dollars Short Call The Short Straight Call may allow an investor to profit from downward movements in the underlying security or index It uses the exact opposite structure as the Long Call If the security or index falls in value the investor can generally profit The maximum profit is the premium received by selling the option If the security rises in value the maximum loss is unlimited For use when investor anticipates e Declining market security depreciation Financial Characteristics e Maximum Loss Unlimited e Maximum Gain Credit received by selling the call option e Break Even Strike price of the option plus the credit received for the sold option Objective e Speculative gain EXAMPLE Short Straight Call Currently XYZ trades at 25 share The investor believes the stock will fall and wants to benefit from the downward movement The investor shorts a Straight Call option strike 20 for 6 0
150. Inc 2006 All rights reserved 0106 5667 Enter number of periods up to 240 months for Monthly charts 3 000 days for Daily charts 250 weeks for Weekly charts 30 days for an Intraday chart NOTE The number of days available on an Intraday chart decreases along with your Interval setting For instance if you choose 1 minute intervals you will only see 4 days of data however as you increase your interval you can increase the number of days back available to view 60 days of Intraday charts are only available when the interval is 10 or higher in intervals of 5 For example you can get 10 days for Intervals of 10 15 20 30 60 You can only get 5 days for Intervals of 1 5 minutes or any other number that is not devisable by 5 Charts Interval Applicable to Intraday charts only minutes Overlay Enter a symbol to overlay on your chart Symbol Enter the hours you want chart data for in military time for example 1600 for 4 00 p m ET NOTE Beginning time can be no earlier than 0600 and no later than 0930 ET Closing time can be no earlier than 1600 and no later than 2000 ET Default times are for the standard session only 09 30 to 16 00 ET As extended hours quotes are only available streaming it is possible to have gaps in you chart if you ask for all session times i e 0600 to 2000 ET The only way to view this data consistently on a chart is to leave that chart open during Pre Market or Aft
151. Level I Quotes fal 1000 H s Iciose 4595 Lo 4586 Spread 001 L 46 31 Hf Smarte x 7 SpecCond Sell Buy a Limit pay im Sell All Short Save TREENIN 46 31 46 32 46 31 Level II and Time amp Sales Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients NOTE Level II data is available to you for a fee if you wish to subscribe to the service However the fee may be waived if you meet certain eligibility requirements For additional information please contact your Schwab Active Trader Team 60 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading The Options Tab The Options Tab allows you to view options chains and if approved for options trading place options trades The Level II Options Tab You will need to turn on the Level II Options tab by clicking Settings gt General gt L2 Data and checking the Show L2 Option Data selection The Level II Options Tab has 4 segments z 1 AYBT Amazon com Inc DOR Fie Settings Stocks Options L2 Opt Adv Opt AMZN 46 45 v Change 0 30 17 65 Volume 2 297 Last 2 00 Open 1 80 Hi 215 Ol 2762 4 H s Close 1 70 Lo 1 63 Spread 0 05 Nov 05 2 05 3
152. Manual StreetSmart Pro Training Educate yourself on the features and benefits of StreetSmart Pro by taking the following tutorials 392 Quick Start Guide Learn about StreetSmart Pro s key features in less than 10 minutes This course offers a general overview of StreetSmart Pro and will help you quickly acclimate to the trading platform Trading Window Learn to submit direct access trades read Level II and Time amp Sales displays and utilize the software settings available in StreetSmart Pro Multi Leg Options Learn the types of advanced option strategies available in StreetSmart Pro and how to trade them Account Detail Learn to actively manage your account by tracking your orders position status balances and transaction history Charts Learn to create charts that meet your needs by adding overlays technical analysis studies and trend lines Watch List Learn to create customized Watch Lists with access to streaming market quotes and news Alerts and Conditional Commands Learn to create and submit Alerts and Conditional Orders to help protect existing positions and to find new trading opportunities Stock Screener Learn to find possible trading opportunities with the Stock Screener a powerful platform based screening and signal generating tool Sectors Tool Learn to locate the top performing Sector Industry or Sub Industry over any one of many time periods to start the Top Down review for inves
153. Member SIPC Calendar Spreads The most common form of calendar spread involves the purchase of a longer term option and the sale of an equal number of shorter term options of the same type and strike Most spreads with the exception of spreads on underlying securities with very high carrying costs will initially be placed for a debit because of the greater time value of the longer term options This strategy can potentially be used to generate income and or to reduce increase the cost basis of an eventual stock purchase sale Using calls this strategy has similarities with covered call writing buy writes For use when investor anticipates e Slowly rising or flat market e Price of the underlying security to be slightly below the strike at short option s expiration Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 137 StreetSmart Pro User Manual Financial Characteristics e Maximum Loss Net Premium Paid In addition client may have to exit the long early via sale or exercise to cover an assignment on the short losing the opportunity for further gains e Maximum Gain Unlimited once the short option expires If the short call is assigned on or before expiration the client will have a short position whose losses should the stock price rise will outweigh any gains made on the long option e Ideally the cost basis of the long call is eventually reduced to zero and the investor begins to get
154. OM THE NEWS WATCH e Click to highlight one or more symbols and click Remove or e Click Remove All to clear the symbol list TIP If you are watching for news on a certain industry or a particular analyst watching for news based on News Codes may be helpful to you To take advantage of News Codes 1 Go to Settings gt General and click the News Code tab 2 A full list of codes and descriptions is available at the bottom of the window so you can scroll through and click on the ones you want and click Add to watch those codes or Type a search word and the list will automatically filter down such as in the image with the term oil all codes that have oil in the description are displayed Click on any or all of them and click Add Select from a category to view only codes in that category such as Business Publications Analyst Ratings and many more 3 Click OK when you have selected the news codes you wish to monitor for news News on these categories will display along with news on any stocks or watch lists you selected to watch Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 341 StreetSmart Pro User Manual News Watch Settings Stocks News Codes r Add News Code Type a search word OR News Watch Alerts To be alerted when news breaks on one of your selected stocks go to Settings gt News Alert in the News menu e Check Play this sound file and click Add to
155. Pric Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients There are several ways you can customize the window to monitor for what best fits your trading strategy e You select which security or index to monitor e You can define your own or select from the 30 pre built strategies that you wish to monitor 220 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools e You can choose what bar sizes you want considered e You select the earliest date from which you wish to get technical analysis for the security and any data older than that date will be changed to N None lt TIPS e Strategy Notes To view the notes description of the strategy right click on the Up or Down flag and select Strategy Notes Strategy Notes Strategy that enters long exits short when the trade price moves above the 50 period EMA and enters short exits long when the trade price falls below the 50 period EMA e Info Click on a trend flag Up or Down to open a window showing information about the last time that signal was triggered STRATEGY MATRIX MENU BAR Enables you to customize the current page for printing Read the Print
156. Pro Schwab s customizable trading cockpit with advanced market information for your desktop Qualified Schwab Active Trader clients can stay plugged into the fast changing market with StreetSmart Pro Schwab s leading edge suite of real time streaming market data software and advanced trading features for your desktop See the New Features in this version of StreetSmart Pro Ge Toobars Settings Tools Sdmabcon tep Antari 00000000 LIVE Acct Net woeh PEIES Tocoy s Cronos E Coch EZRA a to wihcon ESTEEM Moon oP ERT Rue ORSTOM GA Bi e k AX sWHRERKX My Positions B Order Statur Savad Orders Alatz Balances Postions Tearnactiors T Trading 1 Stocks Options Adv Opt MET T Grange GIS OEY Volume 18725594 Lat 28312 Open 2878 Hil 2883 Axo 6x 1000 BEY 1000 4s oe 25 Lol 2865 Spread 01 L 2882 Hfi iI SpeoCond Sea ex TFT Dady 995 dav ime D sens Stet Save Hi mut faro 600 piso 78512 D 2881 7 000 288i 7 Resdy TET ARCA DRUT DIRO ONTD SM Garent Sessan Standerd 14 19 43 AM NN StreetSmart Pro features a customizable cockpit display that keeps key market information on display without switching applications including QUOTES AND TRADING View potential liquidity with a detailed view of market activity that includes quotes from ECNs and market makers Approved traders get direct access to ECNs including INET NYSE Arca ONTD BTRD and BRUT Approved
157. StreetSmart Pro User Manual Table Of Contents Getting Started cccccceseeceeeeeeeeeeeeeeeeeeeeeaeeeeeeeaeaeeaeaeeaeeeeeeeeeaeeeeseeeeeeeeegeesegeansggs 1 Getting Started eriein niena aT a Ea NENE AA NEA EA AA EE a EA EEA DOE EE Oa mule Sees 2 New FEACUFES ti ccececcadte reece inean A TEANNA NEETA PEEKE TA ANTERA 4 LOGGING ON Qe Off osaan atenda rA r RAE EAE AEE ANA ATEA EEEE UE AAEE E ANE 9 Malin Menu Bap sic cence aena sanan naar E aOR E EEA ETNE EANNA aw aren VARKAAN AANAND a 10 Demo Mode Hasidic eraa eaa a a a N a eas Wa oe ea AAEE A ae aaa 19 Customizing Your Desktopi reerine a aa tea van a E a A A E aT a 20 Configuration amp Troubleshooting ssssssssssrsssssrrrrssurrrnnrsurrrnrunuurnnrnnnueerrnnnseuran 29 Quick Reference a ccike ccnnticdeheieed e AEAT ea aE E OE TONNE OA a aaan 37 TOOIDALMS cccceeeeeeeeeeeeeeeeeeeeeeeaeeeeaeeeuaeeeeaeeeeaeeaeaeeeeaeeasaeeaeaeeasaeeasaseasaseaseesgeansags 45 Main Tool Bat iui r cva ists daciitindin EE AAEN E AAN AEEA eae aa 46 BALANCES BAR vennen eiia nanana oran EE ttia siete eidias none EAEE E ANAIE EEOAE fiat MEEA ANART 48 CHART TOOL BAR sirsie saarna AEEA E TE NA AEAEE AA EEEE AA a 51 STATUSBAR cesi arimarena raean aE EEA EAE A EEE EAEAN A AA wat a INEEN ENA TATARA 55 LIVE Fel o E E EAE A E AA A ibs daelen di eabadsneclaaees 56 Trading eiiidh urii araia aaia aai aaa aaa Aaa iaeaea aiaiai 57 Trading OVERVIEW iriiria nore Enana EENE ETARA EAA ARKAE EUNA SERENE KONAC REA AA OAE ANA A
158. Style Bar Pti Chart 1 Microsoft Corp File Edit Yiew Insert Settings Tabs Tools 1 Min 5 Days Daily Weekly Monthly MSFT Monthly 36 months ORCL SEP 27 10 21 70 16 30 10 90 5 50 0 10 Ay 7 5 30 10 70 16 10 1 829 399 21 On a daily chart each bar is one day On an intraday chart each bar represents one interval On Bar charts the left rung indicates the opening price of the stock and the right rung indicates the closing last price of the stock for the day or interval The top and bottom of the bar represent the high and low for that day or interval Green indicates the security s closing last price for the day or interval was higher than today s opening price Red indicates the security s closing last price for the day or interval was less than or equal to today s opening price Calculate Change From Open Close Candlestick Allows you to select the basis for the calculation of bars By default this setting is Change from Open which calculates a bar as up or down based on the difference between the open and closing price When set to Change from Close the color or change of each bar is determined by the difference between the previous bars closing price and the current bars last or closing price On a daily chart each stick is one day On an intraday chart each stick represents between 1 and 120 minutes Green indicates the security s closing last price for the
159. Under Same Name 1 Go to the Main Menu Bar and click File 2 Click Save Layout under the current layout name or Save Layout Under New Name 1 Go to the Main Menu Bar and click File 2 Click Save Layout As 3 Enter a name for the Layout at the bottom of the Save window for example Layout 4 4 Click Save TIP When You Save a Layout You cannot save over a built in layout as they are read only files However you can save your changes to a built in layout by following the Save Layout Under New Name directions above Backup Layouts Each day when you log on a backup of your layout is saved on your computer so that if your layout becomes corrupted or you save changes to it that you wish to reverse you don t have to start from scratch The application will store backup files for the last 3 days that you logged into the application The backup files are saved in a folder called Backup Layout in your Layout folder and have the same name as the original layout with the date of the backup appended to the name for example 102020060ptions lyt If the software detects an irregular or invalid exit from your previous session it will ask you if you want to open the last good saved layout Selecting Yes will prompt you to save the backup layout to your regular layout folder before proceeding You can also restore a layout from a backup by going to File gt Load Layout and navigating to the Backup folder Copyright Charle
160. VENAE A 58 SMartEx Tragin Gewese cn itae ea eE EAE A EA EE E A e a a 87 Direct Ac ess Trading ressa eet aE E A a e AA a ATEA aAa 95 OPTIONS sevesseusetacucsadur rada ATITA TILAA EAA SERA AT AEA ETLE ARAS 107 Extended Ho rs Trading sir eraan anaa Da NEE ARANOA TAANE AA aii 142 Order Status a a r e LE E A EA EAA E DEEE 146 Charts soscispenia paaa haiak a apaapa ahe panaia niaii aa 149 Charting OVErview nui ctriter eli aa a a A a a A a a ea 150 Studies and Trend S eavced casseonge ane anriagteeedeensendaiaheeeetedduaennadaradaedienedsnarouredts 168 Strategy Testing TOO S ccscceeeesceeeeeeeeeeeeeeeeeuaeeeuaeeeuaeeeuaeeeuaeeeuaeeauaeeenaneaeas 185 SEPALEGY OVERVIEW asides sees a Seale a tee vlseteal e taictaiphtlartieia setae btidalute ty seule alderoadlacie 186 Strategy Center oeri ieia ATE AE AAAA stewie E whee eee a a ay reed alee ements 191 Strategy TLESter xscccwstenca naa a E a aa a a a a aAa E AATAS 201 Strategy Performance Details r snr aaa E EEE E AE A E 207 Strategy TICK F merinin aatan maaie ieia oaea Aa AE C AEE a AANA A AEA 214 Strategy Ma A a a a E T 220 Account Detail amp Alerts ccsccccsceeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeseeseeeeeeeeeesaeeneaes 223 Account Detail OvervieW sseni siea soian iuiu nin Ea KEE ENA AEAEE AAAA ATA ATEEN ERAU EAEAN 224 Ac ount DetailsMEN Ue ccisiaescterec io ia E aT A EATE AA Seed seen dace el 225 Messages WINdOW is tiie eraeceeieen a Te aa A eA A E AA A A G 229 Ord r Status io ines
161. ab Select to delete the current tab from the window name Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC 322 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools Highs amp Lows HIGHS amp LOWS Stocks breaking new highs or lows may be breaking through resistance or support levels possibly indicating a changing trend Find stocks and indices trading at new highs and lows on an intraday and or 52 week basis Take advantage of the proximity alerts to recognize when stocks are trading near their intraday and 52 week highs and lows To open click in the Toolbar The Highs and Lows window displays the stocks on either the NYSE or NASDAQ exchanges that are breaking daily highs and lows plus 52 week breaks and proximity alerts The NYSE window will display all listed equities not only those traded on the NYSE You may open up to four High Low windows at a time The NYSE information is active during the standard session and
162. ab in the Account Detail window displays all orders both open and closed placed via any Schwab channel including Schwab com TeleBroker and Velocity The Order Status tab displays Open orders closed orders that have been filled or canceled orders You can sort on any column in the Order Status window by clicking on the column header you want as your sort key Contingent Orders This applies to SmartEx trailing stop orders that are held up until the trailing stop price is met Once the price is met the order status changes to Open and a market order is submitted for execution Account Detail 00000000 Fle Yew Settings Alerts Order Status Order Statue Saved Orders Status Symbol E Contingent DELL Eqty Buy 1000 Trailing Stop 5 00 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Partial fills The Quantity Filled At column displays information for the first fill If there are additional fills this column displays the average price with the number of shares To view the individual fills double click on the order and an Order Details window will open displaying the fill events at the bottom Sorting by Column Click on a column name to sort by that
163. action in the Messages window Templates Alert templates allow you to quickly set up alerts You can select from the sample templates included with the software or choose to edit these or create custom templates that satisfy your specific needs For more information about this feature please go to the Templates topic Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 243 StreetSmart Pro User Manual 1 Inthe Alerts menu select Templates 2 The Templates window will open allowing you to select from the available alert templates TIP You can either edit an existing template or create your own from scratch While you can create templates by completing any of the available fields the most useful templates typically have the symbol and the value fields blank so you can apply your strategy to any symbol and adjust the trigger points as appropriate NOTE Once created alerts can be activated and deactivate repeatedly during the logon session ALERTS amp RISK MANAGEMENT StreetSmart Pro provides Alerts with the option to trigger an order when the alert criteria you set are met Conditional orders can be incorporated to accommodate specific investment strategies and manage risk Add Alert or Conditional Command Aleit Name j j Keep alert active after logot 7 Save as Defaut Condition Symbol x Option Original Trade Price Vanable Chena Value share P amp L X loses I Trailing Sto
164. after hours During the pre market session it will remain empty The NASDAQ information is updated during Pre Market Standard and After Hours sessions NASDAQ Highs Lows DAR NASDAQ NYSE Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients This figure shows a typical NASDAQ NYSE High Low window with a brief description of the colors and highlights Colors used are the default colors e CFFN has hit a daily high for the fourth time today e SFUN and CREE have hit a Daily Low 11 and 37 times respectively e ICFI is hitting a 52 week high for the 11th time today and MICG is hitting a 52 week low for the 8th time today To open the Highs amp Lows window 1 Go to Tools gt Start Tool 2 Change the High Low setting to either 2 or 1 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 323 StreetSmart Pro User Manual 3 Click Start or e Click on the High Low N icon in the toolbar FILE Load Stock List Selecting this feature will allow you to load a previously saved Stock List into your High Low window Save Stock List Selecting this feature will allow you to save your current stock list to a file on your computer which you c
165. agging and momentum or leading Lagging indicators tell you what prices are doing now or in the recent past so are useful when stocks are trending A moving average is an example of a lagging indicator Leading indicators are designed to anticipate future price action and many come in the form of oscillators RSI is an example of a momentum indicator Inside Day An Inside Day represents a day in which the total range of price is within the previous day s price range Inside Market The highest bid and lowest ask prices among all competing market makers in a NASDAQ security Invisible INV An order that is deemed Invisible or Subscriber only will not display on the ISLD order book These orders will be matched if possible but an invisible order has less priority than other orders If an order with a restriction is entered before an unrestricted order at the same price the unrestricted order will execute first Invisible and Subscriber Only orders do not comply with the Display Alternative as described in the SEC Order Handling Rules They are bad for price discovery A BICIDJE JFIGIHITJIJKILIM IN JO JP Q RIS IT I UV WI XIYIZ Last Split Date The last date on which the shares of a security were increased or decreased by splitting Last Trade The price at which the last trade was executed after market close this is the closing price Last Trade Date and Time The date and time the security was last traded Level I A
166. aining some of the upside potential of his XYZ position With a net debit credit of 0 the breakeven price for this strategy remains 64 Collars Gain Loss at Expiration 2 500 2 000 4 500 4 000 500 0 500 1 000 1 500 2 000 stock collar E a p2 G 5 iz w l lt 50 55 60 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC 128 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Stra
167. al Ratings much more from Market Edge com Market Insight Get insightful market and investing commentary by Schwab Center for Investment Research Options Street Access Schwab com option trading tools including advanced options screeners calculators and more Options Street Go straight to the Schwab com option spread search tool Spread Search Account Open a Schwab com browser session to your account History history Account View your account performance on Schwab com Performance Account Manage and view any transfers or payments coming in or Transfers and out of your Schwab com account Payments Online Access information and schedules for online seminars Seminars through Schwab com Schwab Find out when a Schwab Investing Workshop will be in your Investing area Workshops Customer Go directly to the Customer Service page of Schwab com Service where you can get more information on transfers and payments account services managing your profile and much more Subscribe to Click here for instructions and information on subscribing to Level II Level IT data Add Direct If you already have a subscription to Level II data service Access you may qualify for Direct Access trading which allows you to target and send orders directly to ECNs and NASDAQ Market Makers Select this menu item to get more information on Direct Access trading Disclosures View the user agreements that may be associated with your Agree
168. all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Placing an Advanced Options Order 1 Enter the underlying stock symbol and press Enter Write Unwind Rollout Collar Straddle Vertical Sprd Calendar Sprd Combo MSFT x pay Submit to Open Buy MSFT 25 234 ji Cancel Sell MOFEC 10 108 Nex Mamones 1513 7 A0N fca i Stock and or option symbols and price and volume data shown here are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients 2 Select the Time in Force Day is currently the only TIF available Submit to Close Enter the number of contracts you wish to trade You may also check the AON All or None which will ensure that your order will only fill if the entire quantity is available Remember each contract in a Buy Write represents 100 shares of the underlying stock 4 Select the expiration month or Near for the near
169. als e Trader s Education On Line Courses e Introduction to Stock Screener Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 411 StreetSmart Pro User Manual CSUK and Hong Kong Customers Eligibility for and Use of StreetSmart Pro Software and Other Related Products CyberTrader an affiliate of Charles Schwab amp Co Inc provides technical services for StreetSmart Pro a Schwab product Charles Schwab amp Co Inc member SIPC and CyberTrader Inc member SIPC NASD are independent subsidiaries of The Charles Schwab Corporation StreetSmart Pro is offered at no charge to a select group of non professional Charles Schwab Hong Kong and customers referred by Charles Schwab UK who meet certain eligibility requirements based on trading frequency This offer may be subject to additional restrictions and may be changed at any time To learn more about specific eligibility standards for use of StreetSmart Pro by customers of Charles Schwab Hong Kong and customers referred by Charles Schwab UK please contact your customer service representative For customers in Asia UK and Switzerland accessing StreetSmart Pro via DSL ISDN or cable modem is strongly recommended in order to receive optimal speed and performance of streaming market data functionality Certain products and services described in this Online Help guide may not be available to customers of Charles Schwab Hong Kong and customers
170. an approximate commission amount if you want to factor that into your P amp L TIPS e Keep strategy symbol bar size combinations simple while you are learning to use the tool so that you avoid getting frustrated by information overload Start by testing one symbol against a few strategies or vice versa and selecting only one or two bar sizes at a time e When establishing Back Test settings for a strategy being used in a Chart this setting will not be available The Bar Size and Number of Bars for Test is effectively the same thing as the Interval and the Range in the Chart settings STRATEGY TESTER COLUMN DESCRIPTIONS The following columns are available in the Strategy Tester window To learn how to configure columns refer to Configuring Strategy Tester Columns STRATEGY TESTER COLUMNS Open P amp L P amp L from positions still open at the end of the test Performance A percentage measure of how much profit or loss the system generated based on its initial equity Performance Profit Open P amp L Initial Equity 100 Annual Percentage Rate This value is reached by multiplying a year 365 days by the Performance and then dividing by the number of days in the simulation Simple interest used APR 365 Performance Days in test Buy amp Hold Profit from a buy and hold strategy Buy at beginning of test P amp L and hold Buy amp Hold A percentage measure of how much pro
171. an index Last Size Last trade size Low Lowest price at which the security has traded for the day Mkt Cap Market value of all of a company s outstanding shares in millions Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Mkt Cap Class Market Data Tools Classifies the size of a company by Small Medium Large the indicates where the company falls within the broader classification i e M is a larger mid cap company News Shows the availability of news on a stock Double click the icon to launch News window with the latest headlines on that stock The news icon will change from yellow to white once you have accessed the article Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its affiliates and or its employees and or directors may have positions in securities referenced herein NYSE Ask NYSE Ask Size Current NYSE ask price Highest number of shares posted by a particular market participant within the inside NYSE Ask NYSE Bid Current NYSE Bid price NYSE Bid Size Open Highest number of shares posted by a particular market participant within the inside NYSE Bid Opening price for the day Open Far Open Crossing price at which orders in the opening book would clear against each other NASDAQ stocks only Open Imbalance Number of op
172. an load later Clear Stock List Clears the Symbol List in the Settings gt Symbol List dialog and enables you to start a new list from scratch by Adding Symbols see Symbol List below for more info on adding and deleting symbols This will not clear the High Low history Window will remember the last ten 10 stock list files you have sie SE To toggle between files click on any of them Closes the Closes the High Low window 2 i window Data Display e Days Select the number of days across which you wish to see High Low data from 1 to 20 days For example if you select 3 days you will see high and low data for today plus the last two trading days High Check this option to view highs for the number of days selected Low Check this option to view lows for the number of days selected NASDAQ Check this option to display NASDAQ data NYSE Check this option to display NYSE data Indices Check this option to monitor Index highs and lows 52 Week High Check this option to display 52 week highs 52 Week Low Check this option to display 52 week lows Mix Proximity Alerts amp Hi Lows Proximity Alerts inform you of stocks that are close to a daily high or low or 52 week high or low Checking this option will combine the two in a single window Daily Hi Lo Count The Daily Hi Lo Count is a number to the right of the price that represents the 324 Copyright Charles Schwab amp Co Inc 2006 All rights re
173. an load later Clear Stock List Unloads the current Stock List leaving you with a blank Strategy Ticker window This enables you to start a new Stock List from scratch see Symbol List below for more info on adding and deleting symbols Page Setup Enables you to customize the current page for printing Read the Printing Windows topic in the Getting Started section for more information print si Prints the current stock list Saves the current stock list to a text txt file in your SSPro folder which can then be opened in Excel or other third party software Strategy Ticker will remember the last 9 files that have been opened To toggle between files click on any of them This will be faster than going into the Symbol List option close sid Closes the Strategy Ticker window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 215 StreetSmart Pro User Manual SETTINGS Securities Select one or all security types to monitor NASDAQ NYSE AMEX Indexes or a Symbol List Bar Size Select the bar size you want used i e 5 Minutes 15 Minute Daily etc Generate Signals at To generate signals at the closing price of the bar select End of Bar Otherwise select Intra bar to generate signals within the timeframe of the bar General Securities Bar Size Nasdaq V 5 Min M 10Min M NYSE AMEX F Indexes I Symbol List M 60Min D Daiy 15Min P 30Min Generate Signals at
174. anual and or switch the News window to display the tab Recent Stories Alerts When a new headline appears in the Recent Stories tab perform the following actions IV Play this sound file 08_Sound way v gt Add Remove Fonts si Click to change the font style in the News window Colors Click to change the colors in your News window Right Click Shortcuts for News Several of the menu options above are also available by right clicking in the News window If a security symbol is in the headline of an article you right click on you will also see options to set an alert load into Trading Window access Research and more 334 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 News Breaking News Tab The Breaking News tab gives you streaming real time general market news headlines amp News 1 Breaking News Breaking News Recent Stories AMGN News Watch 1 02 DJ Japan Police Raid Osaka Toyota Kyodo OSAKA Dow Jones The Osaka prefectural police searched the head office of Osaka Toyota a sales arm of Toyota Motor Corp 7203 TO and seven of its outlets Tuesday on suspicion of faked sales of used vehicles Kyodo Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may
175. ar and choose the Snap To line you wish to edit Read more about Snap To in the Trend Lines topic Fibonacci Click the button and then click on the chart to draw a Retracement Fibonacci Retracement line Read more about Fibonacci lines in the Trend Lines topic Fibonacci Fan Click the button and then click on the chart to draw a Fibonacci Fan line Read more about Fibonacci lines in the Trend Lines topic Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 163 StreetSmart Pro User Manual Fibonacci Arc Click the button and then click on the chart to draw a Fibonacci Arc line Read more about Fibonacci lines in the Trend Lines topic VAP Click to show lines bars on the chart where the highest Volume Average Prices have occurred Ds Click to add a Conditional Order or Alert on the security in the most recently accessed Chart window Open the Online Help directly to information on using Charts in StreetSmart Pro CHART WINDOW SETTINGS Chart Settings StreetSmart Pro software gives you real time interactive charting capability with a wide range of customizable features You can Open a New Chart Open as many as six charts at one time 1 Go to the Toolbar 2 Click the chart icon w Link Charts to the Trading Window A chart or multiple charts will automatically load the symbol of the stock in the Trading window if they are linked To link charts to the Trading window
176. are doesn t know in what order the high and low occurred So to use the Trailing Stop Money Management function the software looks at two price action scenarios 1 The Low occurs before the High 2 The High occurs before the Low The software then labels the scenario that gives the most profitable result as Best and the other one Worst Connect Entry Exit Points A dashed line from the entry to the exit point of each trade is displayed when this is checked and the strategy is applied to a chart oO Click to change the color of the dashed line 4 When you are finished creating the strategy click OK This will return you to the Strategy Center window 196 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools EDITING AN INDICATOR From the Edit Strategy window you can edit the individual indicators that comprise a strategy Indicator Adaptive RSI Pace Cross Bolinger Bards Price Cioss TOMDI DMI DI Cross lErwvekpe Pace Cross IMACD Signal Line Cross Morey Flow Pescert Zeto Cross Mowing Avg Exp Exp Cross Chat Display Settings Long Erhy Long Ext Short Erry Short Ext Text Labels I Trade Action A yl Moning Avg Exponential Price Coss I Indicator Name Mowing Avg Geo Geo Cross Moving Avg Geometric Price Cross Moving Avg Simple Price Cross Moning Ang Simple Single Cross V Trade Action Poirter gt og
177. arning re you sure you want to turn off Order Verification WARNING IF you uncheck the Order Verification you will submit Orders without a chance to verify them and you will also not see warning messages relating to your orders By unchecking you accept the associated risks If you leave Order Verification checked an Order Verification window will display prior to submitting the order and you will see the terms of your proposed order Refer to the Order Verification amp Warnings Disclosure in the Help for more details on the risks of trading without warning messages IMPORTANT If you turn off Order Verification your orders are immediately submitted without a verification screen so you will not have the opportunity to review the terms of your order prior to entry and will not see warning or informational messages related to your orders By unchecking this feature you accept the associated risks of trading without an Order Verification window and messaging as described in the StreetSmart Pro Agreement and Disclosures ORDER WARNING MESSAGES The Order Warnings feature of StreetSmart Pro automatically opens a pop up window with warnings and important information about your order to review before you submit it The default setting is checked to activate this feature Here are some samples of the warnings and messages that be generated Warning Messages include Triggered by You have an open order for this security Duplicate order
178. art Pro User Manual Money Managemen t Chart Settings e While it may simplify analysis to use one indicator at a time and then apply multiple strategies to the tool you can have more than one indicator per strategy e When using multiple indicators the indicator at the top of the list takes precedence over each one below it the second highest takes precedence over the indicators below it and so forth e Change the order of the indicators by clicking on the indicator you wish to move and then clicking Move Up or Move Down to change its position in the list Money Management tells the strategy to trigger a trade exit based on a pre determined Trailing Stop Profit Exit and or Stop Loss percentage If the Money Management criteria are met a Long Exit or Short Exit will trigger and the strategy will start over by looking for Entry opportunities Click Add Select Profit Exit Stop Loss and or Trailing Stop Set the Gain or Loss and Click OK To add two or more Money Management indicators repeat the steps above and select the remaining indicator On Back Test Assume This option is only available with the Trailing Stop Money Management indicator and allows you to determine whether the test is based on more conservative Worst or aggressive positive Best back test results More about On Back Test Assume Because only bar data is used in back testing i e high low open close rather than tick data the softw
179. art window EXAMPLE You have 3 chart windows open and you most recently clicked on Chart 2 When you click the Add Edit Studies button it will open for Chart 2 If you want the button you press to affect another chart click that chart first and then click the button in the toolbar e The Regular Snap to and Best Fit trendlines are the exceptions and can be clicked in the toolbar and applied to any chart in your layout e Click anywhere in the main menu and then hover your mouse over a button to see a Tool Tip that says what the button will do e All the buttons in the Chart Toolbar correspond to a feature also found in the menu of each Chart window CUSTOMIZING THE CHART TOOLBAR Customize which icons are displayed on your chart toolbar Select Toolbars gt Customize gt Chart Tool Bar from the main menu or right click on the Chart Tool Bar and select Customize The Chart Tool Bar customization window will open You can then select which tools you want displayed on your toolbar e Use the Add Remove buttons to move buttons between the Available and Current columns e Use the Move Up Move Down buttons to put the buttons in the Current toolbar in the order you prefer e Click Close when you are finished customizing your Chart Toolbar MOVING THE CHART TOOLBAR The Chart Toolbar can be displayed vertically on the left right hand side or the top or bottom of the frame or it can be removed to be a free floating window 1
180. ase refer to your account agreement and the Margin Risk Disclosure Statement NOTE Short sale orders can be placed as either day or GTC orders however GTC orders can expose you to substantial risk Although the stock may be borrowed on the day the order is entered it may not be available for loan on the day the order is filled An immediate buy in may result for your account Short Sell Exempt A customer service representative may enter Short Sell Exempt orders on your behalf in certain limited circumstances The most common instance when this may occur is when liquidating the underlying security where the position is held as either an equity right warrant or convertible In these circumstances the securities are not in an acceptable form for delivery on settlement date Note that you must file an exercise for the right warrant or convertible before your order to liquidate the underlying security can be marked as Short Sell Exempt This action acknowledges that the intent is to sell a position instead of short a stock and is therefore exempt from the up tick rule Please see Up Tick rule for more information Size Size represents the number of shares immediately available to buy bid or sell ask For example a bid of 54 with a size of 500 would indicate an order to buy 500 shares at 54 By the same token an ask of 55 with a size of 1000 would indicate an order to sell 1000 shares at 55 SmartEx SmartEx is a trade execution t
181. ased upon the price and number of shares filled on each order To change the Auto cancel timeout setting go to the Orders tab in the Settings gt General window All orders and executions can be viewed in the Order Status tab of the Account Detail window or if there was more than one fill in the Order Detail window This window can be accessed by double clicking on the order or by clicking on the order and going to Orders gt Detail in the menu SMARTEX ORDER TYPES StreetSmart Pro allows you to select any of these SmartEx order and action types Order Types Action Types Market Buy Sell Oo change O Trailing Stops e A SmartEx Trailing Stop Buy Sell Short order is a stop order whose stop price will trail either the current inside ask if buying or inside bid if selling shorting at the time the order was submitted by the number of points or the percent you specified in the Trailing Amount field EXAMPLE In the image below we have a trailing stop of 5 set T 5 A Smarte x C pts Traiings DAY If at any point the price retraces the specified Trailing Amount a SmartEx Market order will be routed for the quantity you specified If you place an order to close a position using a trailing stop set to 5 if the bid price increases 9 and then drops 5 the order will be sent at that time The change from the time that the trailing stop was placed would effectively be 4 above where you placed the order e T
182. at column Auto Sorting When checked the sort order will change in real time as new data comes through For example if you were sorting by the Price column and Auto Sorting was checked the sort order of the watch list would change as prices changed Long Names Abbreviations Select which format you would like for displaying the Sector Industry and Sub Industry columns Symbol List Adding Symbols 1 Click Settings gt Symbol List 2 In the Symbol List window type in the stock or index 3 After typing each press Enter on your keyboard or click the Add button 4 After all the stocks and indices have been entered click OK Another way of adding deleting stocks to the Watch List is by pressing the Insert Delete key on the keyboard Type in the stock to add delete in the Insert Delete box that appears Saving a Symbol List 1 Click File gt Save Stock List As 2 In the Save window that appears type in the file name you would like to save the list as then click Save Option Greeks indicate how fast an option price is changing relative to Greeks parameters such as time underlying stock price volatility etc Settings Pricing Method Select from Black Scholes Barone Adesi Whaley or Cox Ross Rubinstein Interest Rate Defaults to the 3 Month Treasury I rate Index 296 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools rate but you can sel
183. at you are using the same color for your background and font To adjust your colors 1 Click on the News window Settings gt Colors Choose the colors for the background and fonts 3 To change the colors click on the color wheels on the right side of the page and select contrasting font and background colors 4 If this does not resolve the problem please contact your Schwab Active Trader team How can I move the windows around individually and customize the layout You can move the windows within StreetSmart Pro by clicking on the window you want to move Place the cursor on the highlighted title bar left click and hold the mouse down then drag the window to the new location and release the mouse You can also then resize the window by placing your cursor on any corner of the window left click and hold the mouse down then move your mouse until the window fits where you want it to be displayed and release the mouse Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 397 StreetSmart Pro User Manual I use several monitors How can I move the StreetSmart Pro windows to display on different monitors Follow the instructions for enabling free floating windows Once this feature is enabled you can move different components of StreetSmart Pro onto different monitors I minimized one of the StreetSmart Pro windows and now I can t see it How do I get it back From the Main Menu select Tools
184. atch 10 40 GG DJ Amaranth Reports Holdings As Of Sept 30 WASHINGTON Dow Jones The following table describes the holdings of Amaranth Advisors LLC listed according to their value as of Sept 30 as disclosed in a filing with the Securities and Exchange Commission Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients To Add Stocks to the News Watch Go to Settings gt General and e Enter a Symbol or click Add Watch Lists and select one of the built in watch lists or scroll to the bottom of the list to Browse for your own list e Click Add to append the list of Selected Symbols with the symbol you entered or the watch list you ve selected e Watch current positions will automatically watch for news on stocks in which you have an open position if this feature is checked e Watch breaking news will display breaking news in the News Watch window in addition to if you choose see News Watch Alerts below alerting you to breaking news on the stocks you are watching 340 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 News News Watch Settings Stocks News Codes V Watch Current Positions Watch Breaking News TO REMOVE STOCKS FR
185. ate pane below the chart 4 Study Data Points Certain studies may be more precise when using a larger set of data to calculate the study results but occasionally a chart will not have enough data to maximize the precision of the results What StreetSmart Pro charts do for studies where this applies is extend the period used to calculate the study up to 4x the study period to achieve the most accurate study results Checking Auto Optimize will automatically try to achieve the most precise results given the amount of data available By unchecking Auto Optimize you have a choice about how much data to use in the study calculation Max Display will use data only from the number of periods you specify Max Precision will use data from the specified number of periods multiplied by 4 5 Make the changes and click OK To Delete a Study Click on the study then click the lt lt button TREND LINES Trend Lines are a technical indicator where a straight line is drawn connecting a series of prices with either a clear downward or upward trend Traders incorporating trend lines into their strategy may look for prices breaking through a trend line to potentially identify changing trends Set up Trend Lines from the Insert gt Trend Line menu or click on one of the trend line icons from the Chart Tool Bar Up trends are defined by a trend line that is drawn between two or more troughs low points to identify price support within the tre
186. atic and the Positions tab is dynamic Why are my Balances different on StreetSmart Pro software than on other Schwab electronic channels All Schwab electronic channels are in the process of being converted to using marked to market balances and positions Before this conversion process is complete it is possible that StreetSmart Pro software will be using this real time valuation method while other channels are using methods based on security prices from the close of the previous business day Additionally the StreetSmart Pro quote feed is different than feeds used by other electronic channels such as Velocity therefore you may see slight variances based on both the quotes themselves as well as the timing of the balance update POSITIONS What is meant by open positions Securities that hold in your account are open positions Once you sell a position that you are long or buy back a position that you are short that position is considered closed This page only displays your open positions How are Market Value and Prices determined 402 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Market Values and Prices displayed are real time and derived from the real time quotes for the securities in your account How is the Cost determined Adding and subtracting the fills received for your positions determines the total cost The cost is calculated by multiplying the number of shar
187. ation on how each routing venue works Some order routes will have multiple order types such as Limit Market Stop Limit etc After selecting your routing venue choose an Order Type from the drop down list See the Direct Access Route Comparison topic for an overview of what Order Types each route may offer Time In Some routing venues will have one or more Time In Force Force options including Immediate or Cancel IOC Day DAY Fill or Kill FOK etc After selecting your routing venue choose a TIF from the drop down list See the Direct Access Route Comparison topic for an overview of what Order Types each route may offer V Spec Cond If checked when you send an order a Special Conditions window will open allowing you to specify additional conditions for your order such as Minimum Quantity All or None etc See the topic for the Routing Venue you are using for a description of its available Special Conditions INET Execute SWC Buy Time in Force DAY Special Conditions Order Type Limit Min Oty Quantity 1000 Max Floor 0 Limit Price H Peg Diff H Stop Price NOTE If you do not change your order type to Market or use the Spec Cond checkbox StreetSmart Pro will automatically make your order type a Day Limit order Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 67 StreetSmart Pro User Manual W Sell All If you are selling a long
188. ation to keep colors with the price levels as they move TRADING WINDOW SETTINGS By clicking on Settings gt General the Trading Window Settings will open and changes can be made NOTES Global Settings Bold check boxes are global changes for all open Trading windows Changing a setting marked with a bold check box affects all Trading windows simultaneously Non Global Settings Non bold check boxes are local and only affect the Trading window in which you are working ORDERS EXECUTION SETTINGS Order Verification If checked requires you to verify orders before they are sent allowing you to reduce the risk of sending an incorrect order NOTE For important information about this subject go to Order Verification View Warnings StreetSmart Pro automatically provides Order Verification and Warning amp Informational Messages related to your order The default setting is active NOTE For important information about this subject go to Order Warning Messages Default INET Orders to IOC If checked every INET order you send will automatically be sent as an Immediate or Cancel order which requests an immediate fill for any number of shares that may be available with the possibility of a partial fill Any remaining shares that are unfilled will be cancelled This option will be grayed out if you do not have Direct Access capability Default MM Double Click to SuperMontage
189. ay not always be possible Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 233 StreetSmart Pro User Manual Saved Orders SAVED ORDERS TAB Saved orders made by clicking the Save button when entering a SmartEx order in the Trading window are listed under this tab Account Detail 00000000 AE Fie view Settings Alerts Saved Orders Order Status Saved Orders Alerts Balances Positions Transactions Symbol Action Quantity Price TIF DateTime Bu 1000 46 94 DAY 11 50 ET 11 29 27 a DSi Bu 1000 30 5 D af aI 2 Load DELL into Trading Window Query for News on DELL Research Ext Quote for DELL Apply Alert to DELL gt Submit Edit Delete Hide Menu Saved Orders Help To Submit an Order From the Saved Orders Tab 1 Right click on the order you want to send 2 The order will highlight 3 Choose Submit to send the order You can also use the Saved Orders drop down menu to access the Submit Edit or Delete functions pi Descriptions Cc olumns Symbol Displays the unique characters used to represent the security Displays the action type of the order Buy Sell Buy to Open etc Quantity Shows the number of shares or contracts to be traded Shows the price at which you want the order placed Displays the Time In Force Day GTC Good Til Cancelled etc Date amp Time Shows the date and time the transaction was saved Displa
190. ayment these newly purchased securities may be subject to special requirements Securities purchased using unsettled funds should not be sold prior to the settlement of the funds used to purchase these securities generally 3 business days after the sale of the security which generated the funds If these securities are sold prior to settlement of the financing sale then additional funds will be required to be deposited in the account to cover the cost of the newly purchased securities If no additional funds are deposited within 5 business days of the purchase the sale of these securities will constitute a free ride under Federal Reserve Regulation T This will result in a 90 day settled cash up front restriction EXAMPLE If you sold a fully paid for security on Monday the ist you could use the proceeds to purchase new a security prior to the settlement day of Thursday the 4th 3 day settlement However if you sold the newly purchased security prior to the settlement date Thursday the 4th you would then be required to deposit funds to pay for the purchase If you sold the new position on Thursday the 4th or anytime there after no additional funds would be required This represents the total dollar value of your unswept or intra day cash money market funds bank deposit accounts and net credit or debit balances you hold in the Schwab account you 280 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5
191. buy back any short option positions that are currently in your account 5 The Options Execution window will open as in the following image Execute SmartEx Order 00000000 MSFT Buy to Open Nov 05 27 50 Call Order Type v Time in Force DAY Quantity f H Special Conditions Limit Price 0 1 J Stop Price af Save Order Cancel 6 Select the appropriate options described below and click OK to send the order Options Execution Settings Quantity Click on the up and down arrows to change the number of contracts Limit Price The bid ask price of the selected option is automatically entered here though it may be adjusted in 05 increments by clicking on the arrow buttons next to the field Min Qty You may specify a minimum quantity for the order to fill if your order quantity is 2 or greater AON All or None All contracts must be filled or the order will be canceled Order Type Limit Limit order will accept improvement over limit price Limit Orders Stop A market order that is only activated when there is a print or quote that is at or through the stop price On sell stop orders the order is activated when the offer is at or below the stop price On buy stop orders the order is activated when the bid is at or above the stop price Once the order is activated you are guaranteed execution but there is no guarantee of the execution price Stop Limit Similar to a stop order in that a stop
192. c 2006 All rights reserved 0106 5667 Charts Average True Measures a security s volatility by averaging the True Range over a period Range of time you specify when setting up the study True Range is the greatest of the following e The current high minus the current low e The absolute value of the current high less the previous close e The absolute value of the current low less the previous close Default of 14 periods can be changed The ATR formula is an exponential average of the true range True range takes into account any gap up or down from the previous day as well as the high and low for the current day The formula is ATR F TR 1 F ATR where TR is the largest of the absolute values of High Low High Yesterdays Close and Yesterdays Close Low Bollinger Bands The top and bottom lines are placed n standard deviations above and below the center line Since standard deviations are a measure of volatility the bands widen during volatile price action and contract when the trading range tightens You can change the variables used in the calculation from the defaults of period 20 and n 2 standard deviations above and below The center line is not included when applying a Bollinger Bands study To get a center line add a Moving Average Simple study for the same number of periods default 20 to the chart Rather than two bands that are always an equal percentage away from the central average Bol
193. c SAR The Parabolic SAR stop and reverse is a trend following indicator that may help establish stop loss parameters as well as signaling opportune times to buy or sell a stock Because it s a trend following indicator it tends to be less useful in a sideways market and more useful in a strongly trending market A line above the price may indicate a bearish trend and a line below the price may point to a bullish stock The formula is SAR Tomorrow SAR Today AF EP trade SAR today where AF Acceleration Factor is one of a progression of numbers beginning at 02 and ending at 20 The AF is increased by 02 each day that a new high is made You can change these values by editing the Minimum Step and Maximum Step fields when setting up the study on your chart And EP rade Extreme Price Point of the trade made so far If you choose Long from the Position drop down EP is the extreme high price for the trade if Short EP is the extreme low price for the trade Pivot Points Uses the previous day high low close and open price to generate a pivot Intraday line two support levels S1 amp S2 and two resistance levels R1 amp R2 This study is only displayed on Intraday charts In the Studies window you may check the lines you wish to view R2 R1 Pivot 1 S2 NOTE Pivot Point lines may not be visible depending on the price scale you have set in Settings gt General and the price discrepancy between the previous a
194. can be seen from the following chart and table the investor who buys the spread rather than simply investing in the call reduces his maximum loss by 1 6th breaks even at 25 instead of 26 and only loses out to the call buyer if the stock price rises above 31 at which point he would have a 100 return on his investment Spread vs Long Call 132 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Vertical Bull Spread vs Long Call Gain Loss at Expiration long call spread 2 4 6 8 GAIN LOSS in dollars 16 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Spread Long Call Long Call Short Call Gablines ot Spread A K Total GainLoss Gain Loss Expiration Gain Loss Geni pics s s 2 o0 s uojs 100 SS 100 00 s f 4 TOOTS 100jf 100 10000 S a 24 BOOTS sojs 5 00 500 00 500 00 Point Bear Vertical Call Spread In a Bear Call Spread an investor performs the exact opposite transactions as those used in the Bull Call Spread Because the investor maintains a negative outlook on the underlying security he sells in the money calls and buys out of the money calls at a higher strike price but sharing the same expiration This strategy is often termed a credit spread because of the net inflow of capital received when the investor establishes the position As a result if the value of the security falls below the strike
195. ccess and other display settings See Configuring the System for information about updates to the General Settings dialog box Order Verification applies to all orders regardless of whether you route your order to SmartEx or one of the Direct Access destinations After you click one of the action buttons when routing an order using a Direct Access channel a pop up window automatically displays your order so you can verify its accuracy before submitting it The Order Verification window gives you e Details of your order and estimated cost if you have set this up See Settings gt General gt Commissions e Warning and informational messages e Error messages related to the order Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 75 StreetSmart Pro User Manual SmartEx Order 00000000 Order You would like to Buy 1 000 shares of AMZN 40 11 Limit DAY for account 00000000 Errors Warnings The price you have entered is above the current quote If you believe this condition should not exist please re examine your order for any possible errors 179 Do Not Place Order You have the option of deactivating these settings in the Settings gt General window You can e Turn off both Order Verification and Warnings or e Keep Order Verification on and turn off only Warnings However it is important that you understand the risks involved in deactivating either of these settings W
196. ccounts that hold option positions The total value of your long and short options positions based on their current real time market prices Options are not marginable securities but are normally shown in the margin account column for accounting purposes Total The total values of all long and short securities positions Securities including options in the margin and cash accounts A combined net value for the margin and cash accounts is also provided Margin Equity Requirements Margin The dollar value of marginable securities in your margin Equity account less the amount you owe Schwab plus any cash in your margin account This is the liquidation value of your margin account but does not include option positions segregated money market funds or cash not held in the margin account Margin Equity represents the total amount you invested in securities plus any excess cash minus funds borrowed on margin Equity Your margin equity divided by the market value of your margin Percent account This amount reflects the percentage of the current margin account value you would receive if you liquidated the margined securities paid off any margin debt and withdrew the funds Options cash account positions and segregated money market funds are not included when calculating the equity percentage Day Trade This field will only be displayed if we identify you as a pattern Buying day trader there are rules governing this designation For
197. ce falls below the 20 period SmMA Strategy that enters long exits short when the trade price moves above the 200 period SmMA and enters short exits long when the trade price falls below the 200 period SmMA Strategy that enters long exits short when the trade price moves above the 50 period SmMA and enters short exits long when the trade price falls below the 50 period SmMA Strategy that enters long exits short when the 50 period SMA moves above and enters short exits long when 50 period SmMA falls below the 200 period SmMA Strategy that enters long exits short when the 14 period Relative Strength Index moves above 30 and enters short exits long when the 14 period Relative Strength Index falls below 70 Strategy that enters long exits short when the 14 3 period D moves above 25 and enters short exits long when the 14 3 period D falls below 75 Strategy that enters long exits short when the 14 period K moves above and enters short exits long when the 14 period K falls below the 14 3 period D Strategy that enters long exits short when the 14 period Stoch RSI moves below 75 and enters short exits long when the 14 period Stoch RSI moves above 25 Strategy that enters long exits short when the 14 period Williams R moves below 25 and enters short exits long when 14 period Williams R moves above 75 200 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Te
198. ce of each bar Commissions How much money was paid in commissions for this bar Total Equity The value of the entire equity cash position account at the end of this bar SETTINGS Initial Equity The initial amount of equity at the start of the test Trade Size How position sizes where calculated Can be as of equity of shares or total transaction cost Strategy Name of Strategy used for test Strategy Detailed description of the strategy Description Indicator 1 e Name Name of the indicator s used for the test Trade Action Actions selected for the test such as Long Entry Long Exit Short Entry etc Trade Exit Profit Exit Percent value gain at which the whole position is closed for profit Stop Loss Percent value at which a stop loss is triggered to close the position Time length of bar e g 5 Min 60 Min Daily etc Back Test Bars Number of bars for which the test was run e g 100 bars Commissions Per trade commission value based on the Back Test Equities Settings Sharpe Ratio used in Sharpe Ratio calculation IRX value at the Risk Free beginning of the back test period will be used in this Interest Rate calculation Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 213 StreetSmart Pro User Manual Strategy Ticker STRATEGY TICKER The Strategy Ticker tool can continuously scans the entire market for securities and indexes that
199. ce you d like to receive with a discretion amount for the maximum minimum amount you re willing to pay Available for limit orders only EXAMPLE A limit order to buy with a displayed price of 50 and a discretionary price of 50 25 is presented as Price 50 Discretion 0 25 Specifies the reserve size for the order Must be a round lot equal to or less than the order quantity Reserve size has no time priority in Level II Only the displayed portion of the order will have time priority EXAMPLE You enter a bid with 5 000 as the total quantity but 1 000 as the Max Floor value Your order will display as 1 000 shares but if yours is the only bid when an offer arrives for 10 000 shares at your price your entire 5 000 shares will execute However if 3 other bids for 3 000 shares each were behind you at the same price only your displayed 1 000 would execute along with 9 000 shares from the other three bids Peg Diff Added to the bid or offer to produce the actual order price Allows more flexibility in your order executions EXAMPLE To peg the offer minus 02 Peg Diff must equal 0 02 the negative sign is required Features only available when Spec Cond is checked in the Trading window The information provided on this page is subject to change at any time BRUT ECN Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 99 StreetSmart Pro User Manual General Information e NASDAQ Sin
200. ching or have broken through a daily or 52 week high or low price Sectors Tool 5 Opens the Sectors window which displays basic values such as price change and volume for stocks organized by Sector Industry and Sub industry Stock Screener Opens a Stock Screener window in which you can run List 10 a stock screener query and get a customizable list of the results A Symbol Lookup Open the Symbol Lookup window to search for the 1 company name of a symbol or vice versa f Education Web Click on the Education Web Link icon in the toolbar to Link 10 access Schwab and StreetSmart Pro s educational material including Using StreetSmart Pro Market Education Direct Access Trading Printable User Manuals Trader s Education On Line Courses Live Online Interactive Workshops Introduction to Stock Screener et nen eine ae an internet browser within your software 10 Live Help 1 ee Live Help window allows you get live help from a Schwab Active Trader Representative Though you may not place trades through this tool you may ask questions about the software check on shortable shares available for a particular stock ask questions about your account etc The Live Help button is on a separate toolbar from the main toolbar and can be toggled on and off from the Toolbars drop down in the Main Menu NOTE The Account Detail window cannot be accessed using the Main Toolbar When you logon the Account Detail window will po
201. chwab Active Trader Representative without having to pick up the phone Just open the Live Help window type your question and the representative will respond in real time Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 33 StreetSmart Pro User Manual Live Help 01 16 09 AM Welcome to Schwab s Live Help Please use this tool to ask our client support staff any questions you may have Enter Message Orders are prohibited through the Live Help panel Clear All Close Sending Messages 1 2 3 4 5 In the Main Menu click Help gt Live Help or click the AB icon in the toolbar Type in the message under Enter Message Click Send To clear previous messages click Clear Click Exit to close down the box NOTE It is important that you do not use the Live Help window in the Schwab trading platforms to request authorize or effect the purchase or sale of any security or commodity to send fund transfer instructions or to effect any other transactions Any such requests orders or instructions that you send will not be accepted and will not be processed PRINTING WINDOWS Printing is available in most StreetSmart Pro windows including the ability to customize your printouts with headers footers grid lines and more Customizing Window Printing In windows with the Print feature click File gt Page Setup to begin customizing your print job 34 Copyright Charle
202. cking Save All As in the Alerts tab 23 StreetSmart Pro User Manual To retrieve these alerts at a future time select Load a window will appear containing all of your alert files Select the file you wish to load All of the alerts contained in the file will then be displayed in the Alert tab in an Inactive status You can then choose to activate each alert manually or Activate All at once Either way you choose you should review the details of each alert to ensure that you want to activate each as it is currently set up Save a Single Alert to a File Select the alert you wish to save by clicking on it Either right click or click Alerts gt Edit in the menu From this window click Save As at the bottom You will then be able to create a new file for the alert or add it to the existing file by selecting the Append to file checkbox Add an Alert When a standard template doesn t meet your needs you can use this feature to create your own alert 1 Click Alerts gt New 2 Complete the fields in the Condition panel For more information on how to complete this window go to Alert Settings To add more than one condition click the and or or radio buttons Note that changes expressed as a percent must be used in conjunction with the gains or loses variable 3 Then specify the actions the alert should take in the Action panel Click OK to add the alert to the Alerts tab 5 When added to the tab during the standard session
203. clients can utilize a wealth of option trading strategies including multi leg complex options NOTE Access to Level II data requires meeting certain eligibility requirements based on trading frequency For additional information please contact your Schwab Active Trader Team See Trading Overview for more information 2 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started MARKET DATA TOOLS Customize and save a virtually unlimited number of streaming real time watch lists Get real time streaming headlines providing you with news on the market or companies you want to watch View streaming updates on the day s top ten leading gainers decliners and volume movers for the NASDAQ and New York American Stock Exchanges Get instant feedback on stocks reaching or approaching their daily and or 52 week highs and lows CHARTING AND STRATEGY TOOLS View Create and change real time streaming intraday daily and weekly charts with a wide choice of technical indicators Compare stocks against each other or against indices and construct custom technical analysis displays using the Strategy Tools SOPHISTICATED RISK MANAGEMENT TOOLS The StreetSmart Pro Alert Window can automatically notify you of potential opportunities or prompt you to protect your positions based upon the Alerts you create The Special Conditional Orders an Alert Action choice can automatically place a trade for you if the
204. coming in You can edit the amount of information displayed in the Status Bar by clicking Toolbars gt Customize gt Status Bar in the main menu The following window will open Status Bar Order Venues V BTRD l ONTD V SuperMontage Select All Clear All MV CapsLock M NumLock Coree Check the routing venues you wish to monitor in the Status Bar at the bottom of your window If the route is available it will display in green if unavailable red You may also indicate whether the Caps Lock and or Number Lock should be permanently enabled or disabled in the software by checking unchecking those options Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 55 StreetSmart Pro User Manual Live Help The Live Help window allows you to communicate directly with a Schwab Active Trader Representative without having to pick up the phone Just open the Live Help window type your question and the representative will respond in real time Live Help 01 16 09 AM Welcome to Schwab s Live Help Please use this tool to ask our client support staff any questions you may have Enter Message Orders are prohibited through the Live Help panel Clear All Close SENDING MESSAGES 1 In the Main Menu click Help gt Live Help or click the AB icon in the toolbar 2 Type in the message under Enter Message 3 Click Send 4 To clear previous messages click Clear 5 Click Exit to close
205. con located on the desktop OR go the Windows task bar click on Start gt Programs gt Schwab gt StreetSmart Pro The main menu will open and the Logon window will appear If you cancel the logon window you can reopen it from the File menu Type the Logon ID assigned to your account NOTE To logon to StreetSmart Pro in either Live or Demo mode you must have a Schwab Logon ID and Password the same password you use for trading web site The ID is either your Social Security number domestic clients only or a Customized User ID applicable to all clients StreetSmart Pro will not allow you to logon with your Schwab Account Number and Password If you need help logging on to StreetSmart Pro or setting up an User ID please call your Schwab Active Trader Broker domestic clients or your Schwab Investment Specialist Europe and Hong Kong customers In the Password field enter the password you selected upon opening your account Click on Live Logon or Demo When trading in Live mode you will effect changes to your portfolio using your own capital while Demo mode allows you to become familiar with the software and practice your trading in a simulated environment Refer to Demo Mode for more information If the log on is successful it will prompt the default layout Logging Off and Exiting the Software 1 To exit the system you must go to the main menu 2 3 OR 1 Click on File gt Exit Click OK to close an
206. crease transparency for investors and market participants by displaying market participants trading interests below a single price level The order routing and execution segment of SuperMontage replaced SuperSOES and SOES orders Support See Resistance AIBICIDIJE FIGIHITIJ KILIMIN JO P Q RIS TJUIVI WI X Y Z Technical Analysis The study of market action It is the representation usually in graphic form of the actual history of trading price changes volume of transactions etc in a certain stock or index and then deducing from that pictured history the present position and possible future trend Tick The tick refers to each individual move from one trade to another in a stock An up tick means the price moved up from the last trade execution while a down tick means it moved down If there is no change from the last trade the tick is considered neutral Time and Sales Time and Sales reflect the trades occurring in the market by displaying each trade s price size number of shares and time that the trade was reported Time Conditions The following time limits may be applied to Stop Limit or Stop Limit orders Day Only Good Until Canceled Fill or Kill Immediate or Cancel Trailing Stop Trailing Stop is a stop order request set at a price level that is above for short positions or below for long positions the current price that adjusts as the price fluctuates For a long position a trailing stop would
207. criteria and can be Stop applied to a point value or a percentage It s important to note the difference between a Trailing Stop Alert and a Stop or Stop Limit order See Alerts amp Risk Management topic for more information Trailing Stop Alert example You are long 1000 XYZ which was purchased at 20 per share If you have a risk threshold of 10 you would want to get out of the position if the bid for XYZ decreases to 18 per share at the time you purchased it or 10 less than highest price reached after that You enter a Trailing Stop Alert at 20 to fire when the Bid loses 10 Assuming the stock price then increases to 25 per share the Trailing Stop will trigger if the Bid then decreases to 22 50 per share 25 x 10 2 50 per share 25 2 50 22 50 per share If the stock never moves above 20 per share and you set up the same type of Alert it will only fire if the Bid loses 10 18 20 x 10 2 per share 20 2 18 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 251 StreetSmart Pro User Manual And Or Allows you to add an additional condition to your Alert e When you select And both conditions must be met at the same time for the alert to trigger e When you select Or either condition can trigger the Alert independent from the other 252 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts
208. customize the current page for printing Read the Printing Windows topic in the Getting Started section for more information Prints the Sector rows currently displayed Exports the Sector rows currently displayed into a tab delimited text txt file Select Export enter a name for the text file and select the location where it should be saved and click Save Closes the Sectors window SETTINGS Checking Enable Indices will keep a list of up to 5 indices at the top of your Sectors window at all times 1 Enter the index symbols in the fields 2 Put a check next to the ones you wish to view 3 Click OK when you are finished 328 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools NOTE Indices must start with a symbol using You cannot use QQQ SPY DIA etc as these symbols do not start with a e Click Settings gt Columns to change the data fields displayed in the Sectors window Move Columns you want to see in the Sectors window over to the Selected Columns Column data can also be changed by right clicking the Sector window column heading You can change the order of the column data by dragging the column heading box to the desired column location Columns Available Columns Selected Columns Open Close Total Volume Total Market Capitalization 5 Day Close Perf 20 Day Close Perf 1 Month Close Perf 6 Month Close Perf
209. d stockholders may have different or no voting rights Premium The total price of an option s intrinsic value plus time value Often erroneously this word is used to mean the same as time value Price See ask price bid price and last trade Price Earnings Ratio The price earnings ratio P E ratio is figured by dividing the price of a stock by the company s earnings per share Primary Peg Pegs the order price to the bid if buying or the ask if selling OTC securities or the best exchange bid ask for Listed securities The order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price EXAMPLE e XYZ is currently quoting at 20 bid x 20 05 ask e A Primary Peg order to buy XYZ with a limit of 20 05 will be submitted at 20 e If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 05 e If the order is not executed it will not update beyond the limit price and will remain posted at 20 05 Proxy A proxy is a security or index whose correlation with another security or index is so strong that it is used as a substitute for the other Put Option An option contract that gives the holder the right but not the obligation to sell a number of shares of the underlying security at a specified price until the option s expiration date Put buyers hope the price of the underlying security will fall Puts may also be purchased to protect an inv
210. d Stop Loss Indicates how many shares contracts were executed Shows the execution price of any order type if the order is being executed Order Trigger What initiated the order Possible sources are Strategies Profit Exits or Stop Losses TRADES Position Tells you when the position was established consecutively Entry Bar This number indicates on what bar the position was established Entry Date and Tells you the date and time when the position was Time established This number indicates on what bar the position was exited Exit Date and Tells you the date and time when the position was exited time Exit Price Price at which position was exited Bars Number of bars between trade entry and exit Number of shares contracts of the position Gross Profit Profit or loss before commissions Loss Net Profit Loss Net profit or loss after commissions Commission Commission paid on position Entry Price Price at which position was established 212 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools EQUITY HISTORY The bar in the test that corresponds to the rest of the information on that row Date Time The date and time on which the bar and its equity account information occurred The cash balance Overdraft If the account is overdrawn the amount below zero appears here The value of any position will be calculated using the close pri
211. d a Symbol Right click on the symbol in the Highs amp Lows window into the Trading and click Load Symbol into Trading Window Window Search for News Right click on the symbol in the Highs amp Lows window on a Symbol and click Recent Stories for symbol Research or get Right click on the symbol in the Highs amp Lows window 40 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started an Extended and click Research Ext Quote Quote fora symbol in the Highs amp Lows QUICK REFERENCE PRINT TICKER Open the Print Go to Tools gt Start Tools Ticker Window Click on Print Ticker Click Start The Print Ticker will open within your software Load a Stock List Go to File gt Load Stock List and select a list of stocks to load Or go to Settings gt Symbol List to create a new list QUICK REFERENCE SECTORS Open the Sectors Go to Tools gt Start Tools Window Click on Sectors Click Start The Sectors window will open within your software Click on the Sectors icon of in the Toolbar Change Indices Go to Settings gt Indices Check the index fields you wish to display at the top of the Sectors window See the Index Symbol List topic for a list of available indices QUICK REFERENCE NEWS Search for 1 Enter a symbol into the Symbol Code field News ona 2 Press Enter Stock or Index Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0
212. d volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients My Positions StreetSmart Pro software also has a My Positions watch list that displays and dynamically updates the equity and option positions you currently hold Unlike the customized Watch Lists the My Positions Watch List will contain symbols for each position you hold in your account Symbols are added to or deleted from this watch list as positions are bought or sold Open My Positions from the Tools gt Start Tool window or by clicking the Ql icon in the toolbar 294 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools amp My Positions File Settings SEL WATCH LIST MENU The following menu items will help you set up preferences and perform certain tasks in the Watch List window Load Watch List Selecting this feature will allow you to load built in or personalized Watch Lists into your Watch List window Save Watch List As Selecting this feature will allow you to save your current stock list to a file on your computer which you can load later Clear Stock List Removes the symbols currently in your Watch List window Page Setup Enables you to customize the cur
213. daptive RSI Cancel Help To add a strategy to the Selected Strategies list click on it in the Available Strategies list and click the Add button To remove a strategy from the Selected list click on it and then click the Remove button Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 217 StreetSmart Pro User Manual Filters 218 Price Range The Price Range filter allows you to set the price level below which and above which a security or index will be ignored ALGE Price Range Ignore Stocks Below 1 1 00 2i 10 points Ignore Stocks Above 1 200 00 gt 10 points Five Day Average Yolume Filter Ignore Stocks Below 10k 100000 100k shares Cancel Default Click on the arrow buttons provided to increase or decrease the prices within the Ignore Below and Ignore Above settings Prices are based on yesterday s close The minimum below setting is 1 and the maximum above setting is 1000 Five Day Avg Volume Filter To ignore securities or indexes with a five day average volume below a certain value use the up and down arrows to specify that value Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools Columns Visible Columns e Trend Green up arrow for possible uptrend red down arrow for possible downtrend e Price Price at which the signal was generated e Technical Strate
214. dar Spreads Credit Spreads Moderate Bearish Neutral to Bullish Buy Neutral to Bearish Write Sell Write and unin unwind bi nal Bullish Bearish and rising volatility Neutral and falling volatility Received Net Premium Paid Unlimited Stock Price Siow Net Premium Net Premium Paid Unlimited The strategic and financial characteristics greatly depending on the specifics of the order Purchase Price of Stock Premium Received Unlimited Net Premium Paid Unlimited Unlimited Net Premium Received Shion Stock Price Net Premium Unlimited Net Premium Received Strike Purchase Price Premium Short Sale Price Premium Strike Unlimited Net Premium Received Gain Loss of Rollouts can vary Gain Gain Loss The strategic and financial characteristics of Combination orders can vary greatly depending on the specifics of the order Suigh High Strike Price in two option strategy Stow Low Strike Price in two option strategy Collar Max Gain Loss assumes the collar is put on in conjunction with a long stock position This column describes the effect of time decay on the respective strategy 118 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading holder s position The discussion of Calendar Spreads that follows is f
215. ddles A strategy consisting of the purchase or sale of both a call and put option with the same expiration date and strike price A long straddle offers an opportunity to make money when a stock or index moves substantially A short straddle offers an opportunity to make money when a stock or index stays within a narrow range Long straddles Long straddles may allow an investor to profit from dramatic price movements in a specific security or index An investor might employ a long straddle when he expects a surprising movement by the security but is unsure of the direction Long straddles involve simultaneously buying calls and puts with identical strike prices and expiration dates typically at the money The investor may benefit from either a large increase or a large decrease in the price of the stock However the stock must move up or down further than the total premium paid for the investor to profit at expiration Prior to expiration if the underlying security moves substantially up or down the investor may choose to realize a profit by selling the in the money option before its expiration date In this case while the in the money option will have been losing time value since it was purchased the losses in time premium are offset by the gains in intrinsic value The investor may continue to hold the out of the money option for the possibility to participate in any further opposite movement by the underlying security However
216. dicator E xit 11 29 2005 09 40 Bu 11 29 2005 10 00 11 29 2005 10 00 11 29 2005 10 10 11 29 2005 10 10 y Indicator Exit Short Indicator Exit Buy Trades Shows each round trip trade entry exit time and price gross and net P amp L etc fi Strategy Performance Details Strategy Tester Performance Summary Executions Trades Equity History Salina 11 23 2005 15 10 11 25 2005 11 50 11 25 2005 12 00 11 25 2005 12 20 11 25 2005 14 50 11 29 2005 09 40 11 29 2005 10 00 11 25 2005 11 50 11 25 2005 12 00 11 25 2005 12 20 11 25 2005 14 50 11 29 2005 09 40 11 29 2005 10 00 11229 2005 10 10 11 29 2005 10 10 Equity History Tracks your starting equity chronologically as well as indicating where commissions were applied 11 28 2005 15 20 11 28 2005 15 30 11 28 2005 15 40 11 28 2005 15 50 11 28 2005 16 00 11 29 2005 09 30 11 29 2005 03 40 11 29 2005 09 50 10 017 00 10 019 00 9 445 00 Settings Shows a summary of the settings used in the test 208 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools i Strategy Performance Details Strategy Tester ER Performance Summary Executions Trades Equity History Settings Parameter Initial Equity ITrade Size Equities Strategy Strategy Description Indicator 1 Name Trade Action Trade Exit Profit Exit Stop Loss Sharpe Ratio Risk Free Interest Rate 10 000 00
217. dow Window from a News Article Get More Right click on the symbol to query for other news articles on that News About stock Index a Stock ina News Article Automatically You can link the News window to the Trading window by going to the Query for Trading window menu and choosing Settings gt Links News ona Stock or Index 42 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started QUICK REFERENCE MESSAGES Messages Window StreetSmart Pro displays streaming order status in the Messages window for the current day only messages from sessions earlier in the day are differentiated by their dark grey color Check Messages for the status of your orders and their execution as well as information about alerts and the market in general QUICK REFERENCE STOCK SCREENER Open the Stock Screener Window View What Filters Make up the Query Create Your Own Query Save Your Queries Load a Symbol into the Trading Window Search for News Right click on the symbol in the Stock Screener window on a Symbol and click Recent Stories for symbol Research or get Right click on the symbol in the Stock Screener window an Extended and click Research Ext Quote for symbol Click the Stock Screener icon in the toolbar or Tools gt Start Tool and change quantity from 0 to 1 The Stock Screener query window will automatically appear on your screen default
218. drive for each day you log in to the software These files can printed in text format Please note that Schwab retains the official copy of these logs To print data directly from the Messages window before logging off go to File gt Print CHANGING OR CANCELING ORDERS Changing Orders To change a SmartEx order go to the Account Detail window Order Status tab and either right click on the open order then select Change or click once on the order to highlight it then click Orders gt Change A pop up box will appear prompting you to modify your order Note that you cannot change the order type of a SmartEx order to or from a trailing stop order after the order has been submitted You must first cancel the order and then resubmit with a different order type Direct Access orders can never be changed Canceling Orders You can request to cancel open orders via the Order Status Tab All Open orders have a green box in the left most column Because of the speed of execution and the short life span of market and marketable limit orders canceling these orders may not always be possible 148 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 CHARTS 149 StreetSmart Pro User Manual Charting Overview CHARTING OVERVIEW Charts provide a quick way to absorb data and understand a security s performance They provide vast amounts of data in an efficient user friendly customizable format making i
219. dvanced Trade Increases 2000 Alert will fire P amp L to if the Bid rises to 32 or more At that time your Trade P amp L equals or 258 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Advanced Trade Decreases 2000 P amp L to Advanced Trade Gains 2000 Yes P amp L Advanced Trade Loses 2000 Yes P amp L Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 exceeds 2000 1000 shares X 2 Bid price of 32 minus your original Trade Price of 30 Alert will fire if the Bid drops to 28 or less At that time your Trade P amp L equals or exceeds 2000 1000 shares X 2 your original Trade Price of 30 minus the Bid price of 28 If you had entered this as 2000 the alert would fire automatically because the current Trade P amp L of 1000 is already less than 2000 Alert will fire if the Bid rises to 33 or more At that time your Trade P amp L has increased 2000 2 points X 1000 shares Alert will fire if the Bid drops to 29 or less At that time your Trade 259 StreetSmart Pro User Manual P amp L has dropped from 1000 to 1000 1000 shares X 2 Bid price of 31 at the time that you entered the alert minus the new Bid price of 29 Advanced Trade Alert will fire P amp L if the Bid rises to 31 20 or more At that time your Trade P amp L has r
220. e One way of doing this is to screen for a stock that meets your criteria find the values of the filters you are using and then use that information to refine your query For more information about creating user queries use the Education Weblink rom the StreetSmart Pro toolbar to access the Stock Screener Platform Course Where can I find out what filter variables comprise a built in query Whether the query you are interested in is Built In or one of you created you can view the filter variables by selecting the query and then going to View gt Query Description Can I use an existing query as a starting point for a new user query Yes select the query that you would like to use as your starting point Then go to User Queries gt Edit Query NOTE You must rename your new query to save it WATCH LIST FAQ How do I create a watch list Click on the Watch List icon in the Toolbar If you want to delete a current watch list and create a new one 1 From the Watch List window Click the File gt Clear Watch List 2 This will empty the current list 3 Now you can add symbols one at a time by right clicking in the Watch List window and selecting Add Symbol 4 You can set up the entire list at once by clicking on Settings gt Symbol List This allows you to add or remove symbols from the list 5 You can also use the Insert key on your keyboard to open a pop up box and add symbols or the Delete key for removing symbols
221. e mouse button Drag your mouse cursor to the bottom edge of the info window until the arrow changes to a small black arrow pointing in two directions Keep it pressed while you drag the window down to increase the size STRATEGY TESTING IN CHARTS See a graphical representation of your Strategy Tester results in a chart View the entry and exit points the strategy identifies and instantly see if the stock really did move up or down To set up click Tools gt Strategy Center in the Chart menu The image below shows long entry and exit points based on the Bollinger Band strategy which was applied to the chart Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 165 StreetSmart Pro User Manual ti Chart 2 Amazon com Inc File Edit view Insert Settings Tabs Tools 1min 3min 15min Daily Weekly AMZN Intraday 15 minute 10 day Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients The strategy testing tools available in the Strategy Tester window are also available here in the Chart window e From the Settings gt Back Test menu you can change the settings for the back test such as commissions quantity per trade and initial eq
222. e positions in securities referenced herein and may as principal or agent buy from or sell to clients Info The Info Window provides the statistical data for the point on the Windo chart you have clicked on When you first open the window from the w pull down today s data will be displayed To change the displayed data either left click on a specific point on the chart or hold down the left mouse button and move the mouse to find the date you want If you haven t made any changes to the chart the data in the window will include that day s Open High Low Close Volume and BOL Bollinger Bands When you add more studies to the chart 152 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts they will also appear in the window As you increase the number of viewed studies you may not be able to see all of the statistical data in the window To view all of the data available you may need to resize the window by dragging the corner with the cursor until the all data is displayed NOTE You can access Settings Views Tools and Trend lines by either using the respective pull downs or right clicking on the chart INSERT The software allows you to add a vast number of studies to your chart for technical analysis Highlight the study you wish to add in the left column Click the gt gt to move it to the box on the right Choose the Show In option and place the study in any of
223. e Strategy Center window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 201 StreetSmart Pro User Manual 2 Click on a strategy notes with a description of each will appear at the bottom of the window when clicked and click Add Repeat to add multiple strategies 3 If you wish to edit the strategy you may also do this from the Strategy Center 4 Click OK to apply the strategy ies Next you will need to add the symbol s to test against 1 Click Settings gt Symbol List 2 Add the symbol s to the list by typing the symbol and clicking Add or by loading a saved stock list by clicking Load List 3 Click OK when you are satisfied with you Symbol List Now you need to set up the parameters for the test 1 Click Settings gt Bar Sizes The Bar Size combined with the Number of Bars to Test in the Back Test Settings see below determine the period for which the test is executed 2 Check one or more bar sizes For scalping and other fast turnaround techniques a 5 Min bar size would be more appropriate whereas a Daily bar size would be better for someone with a longer term focus in their trading A separate test will be run for each bar size selected 3 Click OK and you should begin to see some data in your Strategy Tester if you haven t already Finally click Settings gt Back Test 5 Choose the desired Back Test Settings for the test BACK TEST SETTINGS Number of Bars This i
224. e are known as Conditional orders NOTE Unless you check the Confirm order before sending checkbox you will not receive an Order Verification message when the Conditional Order is triggered Be sure you carefully review the terms of the Conditional Order before submitting it Symbol The condition symbol will automatically populate but can be changed Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 253 StreetSmart Pro User Manual Order Type e Choose from Buy Sell Short and Close e Close will either submit a Buy or Sell depending on whether you are long or short If you input a share quantity and your tradable position is less than this amount when the alert fires the software will send the order for that lesser net tradable amount e If you checked the Options box you can choose from Buy to Open Buy to Close Sell to Open Sell to Close or Close Enter the quantity you want to submit in this box If you are using Close as the order type you can use All in this field or manually input a quantity You can either select Market from the pull down box or enter a limit price Note that since conditional orders are not submitted until the conditions that you specified are met a Market order will ensure fills at the current price of the security at the time the order is received by the market Conditional orders will be sent via SmartEx or via select Direct Access routes for those qua
225. e book is turned on are in lower case Other non NASDAQ quotes are noted with an asterisk Level II Tips e Check Show Equity Quote Volumne in 100s in the Settings gt General gt L2 Data window of your Trading window to display available shares at 1 100th of their real value e g 10 means the participant has 1000 shares available If there are parentheses around the number it is for fewer than 100 shares and is the actual number of shares they are making available For example If you see 75 the participant has exactly 75 shares to buy or sell SIZE ID Market Makers and ECNs can post to Level II anonymously by sending Non Attributed orders to the market Non Attributed orders are displayed in the Level II montage with the SIZE identifier For each price level all non attributed orders are aggregated 68 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading under the SIZE identifier e If you have Directional Quote Change Arrow checked in your Trading window settings you may see some small up and down arrows in the Level II area of the Trading window What these arrows indicate is the direction that market participant just moved in relation to the inside price For instance if Market Maker GSCO is on the bid at 65 25 but backs off to 65 125 a down arrow will appear at the new price level If GSCO moves back up to 65 25 an up arrow will appear Similarly if GSCO is on t
226. e data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Company Shows the company name and the market on which the stock Name trades Market A letter after the security name is the Financial Status Indicator FSI FSI Codes D Deficient Failed to meet NASDAQ continued listing requirements E Delinquent Missed regulatory filing deadline Q Bankrupt Issuer has filed for bankruptcy N Normal Default Not currently deficient delinquent or bankrupt Will not be displayed G Deficient and Bankrupt H Deficient and Delinquent J Delinquent and Bankrupt K Deficient Delinquent and Bankrupt 64 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading TIP To view the current quote for an index Level 1 needs to be enabled Enable Level 1 in the Trading Window menu by clicking Settings gt General gt L2 Data tab and then checking Level 1 Level I Data Symbol To enter a new symbol click in the field type the new symbol and press Enter on your keyboard Click on the down arrow to show recently loaded symbols Select a symbol from this list for rapid reloading Tick Shows whether the stock is on a downtick or uptick Color Direction coded red downtick gree
227. e delta variables that is they are the result of a calculation e The P amp L variables are the difference between the cost and the current price e The Change From Open or Change From Close are the difference between the price of the security at the open or the close and the current price Share P amp L When you set a Share P amp L alert this P amp L amount is based on the difference between your Original Trade Price and the current bid price if you are long the stock or the ask price if you are short For example if you purchased 100 shares of DELL at 30 and it s currently trading at 33 your share P amp L in this case is 3 points or 10 If you want to exit your position with a 6 point profit or 20 gain the Share P amp L would need to gain 100 Alternatively you could designate the Share P amp L to Increase to 6 points NOTE Share P amp L initializes each day based on the Market Open Price rather than on your original trade price This means that if you are using a Variable of Share P amp L and a Criteria of Gains or Loses and the stock opens significantly higher or lower than the price at which you purchased the stock the initialization value could be applied further from the original trade price than you might wish Trade P amp L When you set the alert this P amp L amount is based on the difference between your Original Trade Price and the current bid price times the number of shares you own if you are long on t
228. e details of your order before it is sent STOCK TAB FEATURES In the Stocks tab you can view e Level I data Real time best bid ask quotes volume change from close high low prices etc e Level II data Shows the depth of the market in a stock by displaying in real time the quotes of each Level II market participant Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 63 StreetSmart Pro User Manual e Level II aggregate Displays an aggregation of each price level to provide a quick overview of the quantity available at each price level e Time amp Sales Shows each trade in the stock including quantity and price color coded to show its relation to best bid and ask prices Most orders will be routed from the Trading window so there are fields for selecting the order price quantity venue time in force i e Day Good Til Cancel etc Then use the Buy Sell or Short buttons to submit the order za Trading 1 00000000 Microsoft C A File Settings Stocks Options v Opt Change 0 12 Q Yolume Own Last 25 65 epen 561 Hi 2579 ratio 125121 1000 H lose 25 5 25 559 Spread 0 01 GS L 25 66QH SmanE x R pecCond Sell Buy Givi iar serar shor T save Ist 25 65 2 500 ist 25 66 1 800 2nd 2564 020 nd 2567 200 3rd 25 63 100 frd 25 68 1 000 25 65 25 66 25 65 gt 25 66 bee 25 66 25 65 25 66 25 65 25 66 25 65 25 66 Stock symbols and price and volum
229. e hypothetical model to add 2 points to the underlying price and take away 7 days from the days to expiration This gives you an indication that the call option you are considering might gain about 1 54 if the stock goes up 2 points over a the next 7 days EXAMPLE 2 You can also see how the greeks change as the variable change For example since a Delta will increase as an option gets farther in the money in the example above you would see the Delta change from its current level of about 68 up to 90 This tells you that while it only earned 77 for every dollar so far additional moves to the upside will yield about 90 for every dollar if it continues to go up Hypothetical Option Pricing Input Output Call Put Strike Price 36 Option Value 7 450011 1 131348 Share Price 40 7 Delta 0 803618 0 196382 Expiration days 432 Gamma 0 029869 0 029869 Volatility 20 936097 Theta 0 005661 0 001999 Interest Rate 3 887 Vega 12 260353 12 260353 Dividend Yield 0 Rho 29 893490 A 0 798942 Pricing Method Black Scholes 7 OK Cancel Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 307 StreetSmart Pro User Manual Tickers PRINT TICKER The Print Ticker filters through large volumes of market data on stocks and indices to help you identify incremental real time price changes To open click Tools gt Start Tools in the main menu and select Print Tick
230. e in increments of 500 Press the Left Right arrow keys to increase or decrease in increments of 100 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 65 StreetSmart Pro User Manual e Press the Shift Up Down keys on the keyboard to increase or decrease in increments of 10 e Press the Shift Left Right keys on the keyboard to increase or decrease in increments of 1 e Inthe Quantity field and type in a new share or contract size e Tab to or click in the quantity field and press a number on the keypad to enter that quantity times 100 for instance pressing 5 on your keypad will enter 500 Calculates the number of shares for your order from the dollar Compute amount you enter Shares For instance if you have 10 000 to spend on a stock that is from trading at 5 on the inside ask you would click the button Quantity type 10000 click OK and the share size field will fill in with 2000 NOTE Commissions are not included in this calculation This is where you should enter the price at which you wish to place an order if you have selected a Limit order type There are multiple methods for entering or adjusting your price e Click on the arrows next to the price field to scroll the price up and down To adjust the increments by which the arrows increase or decrease go to Settings gt General then change the Price Increment Click or tab to the price window and u
231. e quantities of shares traded and the time e The top line of both the Bid and Ask can display the Level I quotes if you go to Settings gt General gt L2 Data tab and check the Level 1 box e For Level II users each line shows the Market Maker or ECN ID with their Bid Ask price Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 71 StreetSmart Pro User Manual e For Listed equities each line shows the Exchange with its Bid Ask price and the number of actual shares available on the specialist order book or ECN book A Aggregate e Aggregate quotes show the number of shares being Quotes quoted at each price level The size is the sum of all of the individual market maker ECN quotes at that level e You can view hide the aggregation by checking Display Aggregate Quotes in the Trading window menu Settings gt L2 Data gt Display Settings e Increase or decrease the number of aggregate levels shown by clicking and dragging the divider bar between the aggregate and Level II areas B Level I Shows only the inside bid and ask for a stock It does not reflect the depth of the bids and asks It is reflected as L1 in both the bid and ask boxes You will still be able to view certain ECN quotes but not the individual Market Makers or Exchanges c Level II Shows the depth of all bids and asks in a symbol The left column shows the Bids the middle column displays the Asks Each line shows
232. e screen space more effectively Watch List File Settings Tabs Indices Stocks PFE 22 26 19 033 500 aaaa 40 64 35 886 780 SBUX 30 24 2 084 800 SMH 8 269 900 SPLS 23 74 2 645 600 SPY 123 47 31 451 300 SYMC 19 53 5 729 905 TWX 17 79 11 055 100 cSco 17 27 21 157 000 DELL 29 37 10 483 934 INTC 25 26 19 429 575 WAG 46 78 1 900 000 WMT 49 52 9 323 200 XOM 56 47 8 633 700 YHOO 38 27 6 414 525 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients In the image above you see that we have set up a Tech group We can close this group by clicking the minus and reopen it by clicking the plus Creating a Group 1 Right click in the Watch List and select Insert Group 2 In the white box that appears in the Symbol column type the name of the group and press Enter 3 Edit the group name if necessary by right clicking on the group and selecting Edit Group Name Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 305 StreetSmart Pro User Manual Adding Removing Symbols in a Group e You can add symbols either directly in the Watch List by right clicking on the name of the group and selecting Add Symbol to Group Enter the symbol and c
233. e the quantity using the arrow buttons or the following keyboard keys e Up Down keys to increase or decrease in increments of 500 e Left Right keys to increase or decrease in increments of 100 e Shift Up Down keys to increase or decrease by 10 e Shift Left Right keys to increase or decrease by 1 e Or click in the quantity field and type the number of shares or contracts TIPS e You can also click the button and enter a dollar value to see how many shares you could trade for that amount e To set the default quantity to a different amount go to Settings gt General gt Orders gt Quantity in the Trading window menu 4 Choose whether to place a Limit or Market Order Type 5 If placing a Limit order type click on a price level in the Level II area of the Trading window to set the price 96 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 10 11 12 13 Trading If necessary change the Price using the arrow buttons or click in the Price field and use the following keyboard commands e Up Down keys to increase or decrease by 05 e Left Right keys to increase or decrease by 01 e Shift Up Down keys to increase or decrease by 005 Select the Direct Access order route you wish to use or you may use SmartEx For a comparison of each Direct Access route view the Direct Access Route Comparison topic The default Time in Force TIF will always be Day Select a diffe
234. each other or by subtracting the DI from the DI The study indicates buying when the DI rises above the DI and selling when the DI falls below the DI You can change the periods used in the calculation from the default of 14 The basic Directional Movement trading system involves comparing the 14 day DI Directional Indicator and the 14 day DI This can be done by plotting the two indicators on top of each other or by subtracting the DI from the DI The study indicates buying when the DI rises above the DI and selling when the DI falls below the DI You can change the periods used in the calculation from the default of 14 Employing an Envelope is similar to Bollinger Bands except equidistant from the center average in that the Envelope helps define the upper and lower boundaries of a security s normal trading range When the security reaches the upper band this may indicate a sell opportunity whereas the security reaching the lower band may indicate a buy opportunity Default of 20 periods with Upper and Lower default of 6 can be changed The formulas for the upper and lower envelopes are UpperEnvelope SMA 1 F LowerEnvelope SMA 1 F where F is a factor such as 6 i e 0 06 for the formulas above 170 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts Historical Reflects how far an equity s price has deviated from its average price over Volatility the number
235. eating Stock Screener Queries to set up your own queries if you are not familiar with this process CREATING QUERIES WITHOUT SAVING 1 2 After creating your query and clicking the OK button your query will automatically be saved under the User Queries option in the menu bar It does not save it as a separate file to your computer Your new query s will appear at the top of the list under Settings gt Queries because the software automatically saves your query for later viewing into the same file as the built in queries However you will not see your new queries in the Built In drop down list under Built In Queries CREATING QUERIES AND SAVING THEM TO A FILE 1 2 Create your new query and click OK Then go to File gt Save Query File As A pop up box will appear allowing you to save the query to your computer s hard drive Select the location where you wish to save the query Saving your query in the same place as the built in query will make it easier to find all of the queries in one location Select the name you wish to attach to your newly created query list or you can add to a previously saved query list to add the new query to an existing list of queries You will be prompted whether or not to overwrite the file Click OK If you saved the file as a new name then the file you just saved will be displayed under File gt Recently Viewed Query Files where Recently Viewed Query Files shows the name of your n
236. echnology that combines the best of intelligent order routing IOR with market maker liquidity enhancements SmartEx is designed to deliver trade executions that are as good as if not better than what you would expect to receive using IOR alone Special Conditions Special conditions may be applied to an order such as All or None AON or Do Not Reduce DNR Specialist An individual corporation partnership or group of firms on a listed exchange floor that is responsible for a given exchange traded security The specialist stands Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 387 StreetSmart Pro User Manual ready to buy and sell shares to maintain an orderly market A Market Maker serves a similar purpose for an OTC security Spread The difference between the bid and the ask Generally speaking the more liquid trading volume a stock is the smaller its bid ask spread will be Less liquid stocks those with very light volume usually have larger spreads Standard and Poors 500 Index S amp P 500 The Standard and Poors 500 Index or S amp P 500 lists the 500 largest large cap stocks that is stocks from large companies in various industries Stochastic Oscillator Stochastics compare where a security s price closed relative to its price range over a given time period The indicator consists of two lines representing the position of the market on a percentile basis with zero at
237. ect User Defined Rate and change the interest rate to any you wish Option Greeks Settings Pricing Method Black Scholes Interest Rate Standard Rate sIRX 3 month rate C User Defined Rate i 36 Fonts Click on Fonts to change these settings Colors Click on Colors to change background and font colors Color Row Allow you to match the coloring of all the fields for a given symbol based on any of the fields that could potentially display positive or negative data including e Change from Close Close e Change from Previous Prev e Change from Open Percent Open e Percent Change from Close Close EXAMPLE If you wish to use Change from Close as the field that determines the color click Settings gt Color Row gt by Close Upon doing so each row of data will be colored green or red to reflect whether the Change from Close was positive or negative respectively If any of these fields are not being used in your Watch List they will be grayed out TABS For more on tabs visit the Adding Tabs to Windows topic When checked allows you to maximize screen space while still having quick access to several windows within one window When unchecked you must open several independent windows to view multiple Watch Lists See the Adding Tabs to Windows topic for directions Select to add a new tab to the window See the Adding Tabs to Windows topic for directions Edit tab name Select
238. ed 0106 5667 Trading closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Vertical Put Spreads A strategy consisting of the purchase of a put option with one expiration date and strike price and the simultaneous sale of another put with the same expiration date but a different strike price Depending on whether the purchased put has a higher or lower strike than the sold put a vertical put spread can generally be profitable if the underlying stock or index rises a bull vertical put spread or falls a bear vertical put spread sufficiently Bull Vertical Put Spread Similar to the Bull Call Spread the Bull Put Spread strategy may allow the investor to profit from an upward movement in the underlying security To utilize this technique the investor sells puts at one strike and buys puts at a lower strike that share the same expiration date The high strike puts have higher premiums than the low strike pu
239. ed T amp S Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 73 StreetSmart Pro User Manual TIPS Maximizing Level II Depth You can maximize the depth of Level II data by hiding the Order Entry panel Just click the Open Close Order Entry Panel arrow M Last 40 10 1000 H L 4011 f You can also select Hide Menu from the right click menu to further maximize the depth of the quotes display Viewing More Level II Quotes To view more quotes right click in the Bids Asks or Time amp Sales area of Level II and select Show Scroll Bar This will allow you to scroll down and see the quotes that do not fit in the screen View Entire ECN Books Go to Settings gt General gt L2 Data tab and check those boxes under Display Bid Ask Quotes When the entire book is displayed the ECN ID and quote data will appear in red lower case text ABOUT THE ACTION BUTTONS e Once the Order Entry fields are set up to reflect the attributes you want choose your action Sell Short Buy or Save e If the Spec Cond box has been checked when you click on an Action button an additional Order Entry window will pop up allowing you to specify further details about your order e If the Spec Cond box has not been checked when you click on an Action button the order verification window will display unless you have elected to turn it off See the Order Verification topic for more information e The Save b
240. ed out please contact your Schwab Active Trader Team Access to Level II data requires meeting certain eligibility requirements based upon trading frequency 38 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started QUICK REFERENCE CHARTS Load a Symbol Type the symbol in the Chart window and press Enter Link to the Trading window by going to the Trading window Menu Bar and clicking Settings gt Links Highlight the chart you wish to link to the Trading window Change Chart Click Settings gt General click on the Chart Type W Type amp or Chart Interval icons on the Chart Toolbar or Range Interval right click the Chart window From the right click menu select a new Chart Type or Chart Range Add or Remove Right click in the Watch List window and click Add Symbols Symbol or Remove Symbol To add or remove symbols you can also use your Insert or Delete keys Load a Symbol Right click on the symbol in the Watch List window and into the Trading click Load Symbol into Trading Window Window Change Data You Right click on the Watch List column heading and Want to Track select a different set of data for that column Alternatively go to Settings gt Columns choose the column number you want to update and the new field name and click OK Save New Watch Go to the Watch List Menu Bar and click File gt Save Lists Watch List As or File gt Load Watch List
241. ed price before a specified expiration date Call buyers hope the price of the underlying security will rise Call sellers hope the price will stay the same or go down Candlestick Chart A candlestick chart is similar to a bar chart The major difference is the graphical depiction of each period in a candlestick Each candlestick is formed using the open high low and close of a specific time period The period can be anything from a minute to a month The color of the candlestick is determined by the relationship between the open and close If the close is higher than the open a white or green real body is formed If the close is lower than the open a black or red real body is formed If the close and open are the same it will be a cross The thin lines above and below the real bodies represent the high and the low for the period and are referred to as shadows The high for the period is the upper shadow and the low is the lower shadow It is these shadows which look like wicks on a candle that give rise to the term candlestick Capital Gain The difference in value between what you originally paid for an investment and the price at which you sold assuming the investment gained in value Cash Account This type of brokerage account requires that you pay for trades in full by the settlement date Cash Secured Equity Put CSEP A CSEP consists of any number of short uncovered put options written at a strike price lower than
242. eive an announcement about updates to the StreetSmart Pro software and User Manual the first time you Log Off StreetSmart Pro after the enhancements and upgrades become available You may also receive updates through other methods including electronic notification or emails Please remember that the real time market data available through StreetSmart Pro may come from different sources than the real time market data sources for Velocity schwab com or other Schwab websites This may result in slight differences in quotes and other information especially in fast moving markets Your use of each version of StreetSmart Pro is governed by your agreements with Schwab including The End User License Agreement for StreetSmart Pro software that you must agree to as part of the software download process Your account agreements including the Electronic Services Agreement Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 409 StreetSmart Pro User Manual Any disclosures associated with the market data and trade order routing and functionality incorporated in or related to the use of the software including the Direct Access Disclosure and Agreement The following information is not intended to replace your careful review and acceptance of the agreements and disclosures outlined above 410 Before using StreetSmart Pro you should carefully read all disclosures and instructions that Schwab provides for a comple
243. ell to clients 114 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Last Trade Price Shows the last price at which the underlying stock index traded Stock Symbol Shows the underlying stock symbol To enter a new stock click in the field type the new stock symbol and press Enter on your keyboard Click on the down arrow to show recently loaded stocks Select a stock from this list for rapid reloading le Change Shows the change in price from close for the option m Change Shows the percent change in price from close for the option E volume Shows the option s cumulative volume for the day Last Shows the last price at which the option traded Red indicates a trade below the prior trade and green indicates a trade above the prior trade G opn Shows the price of the option upon market open Shows the highest price the option has reached today Open Interest Shows the number of contracts still open meaning they have not been exercised closed out or allowed to expire as of the close from the previous day Clicking on this button will open and close the execution portion of the Options Level II tab Contract Size There are several ways to change the share size e Press the Up Down arrow keys to increase or decrease by 1 contract Press the Shift Up Down keys on the keyboard to increase or decrease in 10 contract increments e Tab to or clic
244. emo mode are filled randomly with no regard to price so the fill rates have no resemblance to those you might experience in Live mode Only use demo mode for learning the mechanics of the software Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 19 StreetSmart Pro User Manual Customizing Your Desktop CUSTOMIZING YOUR DESKTOP Window Layouts You can design and modify your window layout as often as you like The window layout that appears when you log on is a default layout You can e Keep the default layout e Change it to one of the alternative built in layouts e Build your own layout by opening closing resizing and moving the windows Remember to save your layout click File gt Save Layout As To open a built in Layout or one of your customized layouts e Go to the Main Menu and click File e Click Load Layout then click on the layout of your choice Window Tabs You can further customize the layout by adding Tabs to following windows e Watch Lists e Charts e Top 10 e High Low See Adding Tabs to Windows for instructions on inserting editing or deleting tabs in the windows that support them Toolbars In the Toolbars menu select which toolbars you wish to display You can click and drag each toolbar to relocate it anywhere in your software window When placed around the edge of the window it will snap to the perimeter of the window or it can be free floating in the la
245. end Click and select from the drop down list which Trend B ve a WN Lines Line you wish to edit The button is only available when the most recently selected chart has trend lines drawn on it The Edit Trend Line window lets you select the type of trend line regular Fibonacci best fit regression etc as well as the color and label name for the line Adds a horizontal GREEN line wherever you click on the chart to indicate the Support levels you want to identify in the chart you are viewing Ay Resistance Adds a horizontal RED line wherever you click on the chart to indicate the Resistance levels you want to identify in the chart you are viewing New Tab Click to add a new tab to the most recently accessed chart window You must have Tabbing enabled for the chart in order to click the New Tab icon Show All Data If checked shows chart for the time frame specified in the Range days If unchecked this will display what is indicated in the Data to show field A scroll bar will appear at the bottom of the chart allowing you to move back and or forth through Range days selected 52 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Toolbars WR Edit Tick Data Allows you to change bad chart price data which may impact the technical studies enabled on the chart Click the Edit Tick Data button in the toolbar and then click the price point you need to edit on the chart A window wil
246. ening shares that would remain unexecuted at the current reference price and the side of the imbalance buy sell or none if there is no imbalance NASDAQ stocks only Open Int Total number of outstanding options contracts that have not yet been offset or fulfilled for delivery Open Near Open Crossing price at which orders in the opening book would clear against each other NASDAQ stocks only Open Paired Number of opening shares that are able to be paired off at the current reference price NASDAQ stocks only Open Ref An Open price within the inside at which paired shares are maximized the imbalance is minimized and the distance from the bid ask midpoint is minimized NASDAQ stocks only Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 301 StreetSmart Pro User Manual P E 12 Mo Ratio of company s current share price compared to its earnings per share The higher the P E ratio the more the market is willing to pay for each dollar of annual earnings Pos Dollar Value Dollar value for existing position s in the account Calculation uses the bid price for long positions and the ask price for short positions Prev Close Closing price from previous market day s session Rho Change in the price of an option resulting from a 1 change in interest rates Sector GICS Global Industry Classification Standard Sector classification F
247. ent criteria are met a Long Exit or Short Exit will trigger and the strategy will start over by looking for Entry opportunities 1 Click Add 2 Select Profit Exit Stop Loss or Trailing Stop 3 Set the Gain or Loss and 4 Click OK To add two or more Money Management indicators repeat the steps above and select the remaining indicator On Back Test Assume This option is only available with the Trailing Stop Money Management indicator and allows you to determine whether the test is based on more conservative Worst or aggressive positive Best back test results More about On Back Test Assume Because only bar data is used in back testing i e high low open close rather than tick data the software doesn t know in what order the high and low occurred So to use the Trailing Stop Money Management function the software looks at two price action scenarios 1 The Low occurs before the High 2 The High occurs before the Low The software then labels the scenario that gives the most profitable result as Best and the other one Worst Chart Connect Entry Exit Points A dashed line from the entry Settings to the exit point of each trade is displayed when this is checked and the strategy is applied to a chart ol Click to change the color of the dashed line 5 When you are finished editing the strategy click OK This will return you to the Strategy Center window CREATING NEW STRATEGIES 194 Copyright Charl
248. ent price peak and trough then forming horizontal lines at the 38 50 and 62 levels of retracement from the prior price move Theoretically as prices retrace the retracement levels may act as support or resistance Fill or Kill FOK A Fill or Kill FOK order instructs the broker to immediately fill an order in its entirety or to cancel it FOK instructions are only applicable to limit orders Freeriding Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 375 StreetSmart Pro User Manual This trading violation is the result of buying a security in your Cash Account and then selling the same security without making separate payment on the full purchase price by Settlement Date This situation is called freeriding because basically it is unauthorized borrowing to pay for a trade Fundamental Analysis Fundamental analysis is the study of economic industry and company conditions in an effort to determine the value of a company s stock Fundamental analysis typically focuses on key statistics in a company s financial statements to determine if the stock price is correctly valued A BIC DJE FIG H I J K NIOIPIQIRISITIUIVIWI ILIM X Y Z Gaps Gaps form when opening price movements create a blank spot on the chart Gaps may be especially significant when accompanied by an increase in volume An up gap forms when a security opens above the previous period s high remains above the previous high for
249. enu you have access to Strategy Open the Strategy Center to apply a strategy to the Center chart You can also edit or create a new strategy from the Strategy Center To add a strategy to the chart click on the strategy in the Available Strategies list and check Show selected strategy on chart Edit Strategy Opens the Edit Strategy window for the strategy currently applied to the chart Show Strategy Once an initial strategy has been applied to the chart you can use Show Strategy to hide or show the strategy on the chart Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 205 StreetSmart Pro User Manual Strategy The Strategy Performance Details window breaks down Performance the details and statistics of the strategy being tested in Details the Chart window 206 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools Strategy Performance Details STRATEGY PERFORMANCE DETAILS The Strategy Performance Details window breaks down the details and statistics of a strategy test It is available in both the Strategy Tester and Chart windows To view click Settings gt Back Test in the Strategy Tester The Strategy Performance Details window has 5 tabs each described below Click on the tab names to view a description of the fields in each tab window Performance Summary A total breakdown of the details of the test a
250. er The Print Ticker helps you monitor trades being executed for several securities at once You can set it to show all trades for the securities in your list of symbols or you can filter out excess data by adjusting the increments at which a trade is posted Each trade or print can also display the trade price quantity and change from open or close for the trade You may watch up to 250 symbols in the Print Ticker which can be loaded e individually by pressing Insert on your keyboard and entering a symbol e from a Stock List created in the Watch List or other windows by going to File gt Load Stock List or e from the menu under Settings gt Symbol List NOTE When using Stock Lists you can only load one list into the window If you load a second list it will replace the first list you had already loaded Print Ticker 1 Sample SE al Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients 308 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools TIP Also available is the Position Print Ticker which automatically loads any securities in which you hold a position The features are the same as the regula
251. er Hours Sessions If you switch stocks within the same chart this will generate gaps as the data is not presented to the chart while open Charts will not populate data for times prior to when the chart was opened regardless of the settings of the chart Chart 60 If checked starting at 10 00 a m ET a chart using 60 minute Min Bars on bars will be based on the hour 10 11 11 12 etc rather than the Hour the half hour 9 30 10 30 10 30 11 30 etc Use When overlaying another symbol on the chart checking this box Scale with will change the display to a percent scale Percentages are Overlay based off the performance over the time period intraday daily monthly etc TIPS 1 For the classic look a line chart can be selected with a line overlay Go to Settings gt Colors to configure the colors of these lines for best display 2 The current price will display in the right hand scale that defines the percentages To remove that display go to Settings gt General and uncheck the Show last trade label box located at the bottom of that window 3 Use a support or resistance line and place it at the zero percent level This level can be easily located as the starting point on the left when the symbol and overlay begin plotting 4 Use the crosshairs to see the exact percentage numbers Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 155 StreetSmart Pro User Manual Graph
252. er qualifiers before you verify or submit your order Is there a faster way to submit SmartEx Day Market and Day Limit orders Yes You can submit Day Market and Day Limit orders directly from the Trading window by not checking the Spec Cond checkbox Spec Cond is not an alternative when submitting Direct Access orders Why do I see Direct Access routes for some equities but not others Schwab s Direct Access trading offer applies to Listed NASDAQ and OTC equities only In addition you have the choice to route to any of Schwab s three daily sessions Pre Market SmartEx and After Hours Why do I not see any Level II information Check to make sure that your settings are correct to receive Level II quotes Go to the Trading window and click on Settings gt General If you have been qualified for Level II access you should be able to click on the MM Exchange Best checkbox If that check box is grayed out please contact your Streetsmart Pro representative What are the rules for trading options at Schwab To start trading options at Schwab you ll need to complete an Option Trading Application Based on a review of the application and your requested strategies Schwab will approve your account to trade at one of the following four levels Level 0 Allows you to write covered calls and buy protective puts Level 1 Allows you to write covered calls buy calls and puts Level 2 Allows you to write covered calls buy calls and put
253. er sequence An ideal Elliott wave pattern holds that a five wave advance is followed by a three wave decline to form a complete cycle Ex Dividend Date Date a stock or cash dividend is reflected in the price of the security if you buy a stock on the ex dividend date you are not entitled to the dividend for stock dividends this is the trading day after the distribution is made Excercise Price or Strike Price See Strike Price Expiration The date an option contract becomes void All holders of options must indicate their desire to exercise by this date Fed Call Also known as Regulation T or Reg T Call This type of call occurs when establishing a margin position Investors must deposit initial margin typically 50 of the cost of the trade per current Federal Reserve requirements Fibonacci Fan Lines Fibonacci Fan lines are based on the Fibonacci number series and combine two additional analytical concepts trend line and percentage retracement Fibonacci Fan lines are typically drawn at 38 50 and 62 angles from prominent price peak and troughs Theoretically these fan lines may then provide support during subsequent downward corrections and resistance during subsequent upward advances Fibonacci Retracements Fibonacci Retracements are based on the Fibonacci number series and represent price movements in the opposite direction of the previous trend Retracements can be calculated by drawing a trendline between a promin
254. erved 0106 5667 Reference an email or phone invitation to use StreetSmart Pro please contact your Schwab Active Trader team for assistance I qualify for StreetSmart Pro but don t have the link to download it The StreetSmart Pro download link is located on the Schwab Signature Services Research website at the StreetSmart Pro Center on Schwab com If you cannot find the link contact your Schwab Active Trader team for help How do I trade with StreetSmart Pro Simply open the Trading window and use the Order Entry Panel to place your order For more information about placing an order in the Trading Window see About the Trading Window You may also link to schwab com for trading Open a web browser to connect to schwab com for trading I have a Macintosh Can I use StreetSmart Pro No Currently there are no plans to create a Macintosh version of StreetSmart Pro However Mac users can access streaming quotes and news with Schwab s StreetSmart com web based platform STREETSMART PRO WINDOWS FAQ I do not see any articles in the News window What s wrong If you cannot see any news in the News window it s possible that there isn t any news for the symbol you are currently viewing since you logged on To see if any news is out for today you can right click in the display window and select Query Input the symbol you want to query and select the Last 24 Hours radio button and click OK It may also be possible th
255. es Red is the default color Color Watches at Inside Only If checked highlights the watched Market Makers ECNs only when they are at the inside bid or ask DISPLAY BID ASK QUOTES Update in Extended TIME amp SALES DISPLAY SETTINGS You have the option to integrate any available ECN books not available for all ECNs into Level II Check the boxes next to the types of data you wish you see in your Level II montage Hours If checked Level 1 data will update during extended hours trading If unchecked it will freeze at the prior close price New Time amp Sales Info at Top This makes all new time amp sales to appear from the top vs the bottom Color Time amp Sales Info Show Time on Sales Will color code the Time and Sales for regular and ECN prints The following are the default colors but you can change these by going to Settings gt Colors in the Trading window menu Green Trades at the inside Ask Red Trades at the inside Bid jite Gray Trades in between the inside Bid Ask Yellow Trades above the inside Ask Purple Trades below the inside Bid Gray Highlight Quote change not a transaction This option will display the time of each print Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 85 Print Quote Changes in Time amp Sales StreetSmart Pro User Manual Will highlight in grey and print quote changes in the Time amp Sales
256. es Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools While several built in strategies are available with your software and can be edited to suit your needs you may also create your own custom strategies 1 Open the Strategy Center from the Settings menu of your Strategy tool or the Tools menu of your Chart 2 Click the New button 3 The New Strategy window will open and look something like this New Strategy i eena P Indicator Name Trade Action Homey Management Indicators Turan EE SER Bee Chait Settings F Connect Erhy E xt Points o e ee NEW STRATEGY FIELDS Strategy Enter the strategy name Name An optional field What you type here will be what displays when you click on the strategy in the Strategy Center This field can be used to document the description of the strategy Lists the name s of the indicator s being used in the strategy and the Trade Action they are indicating e Click Add to apply an indicator to the strategy e You can edit the period deviation and other indicator settings by clicking on the indicator and then clicking Edit This is also where you can change how the trade indicators display in a chart Refer to Editing an Indicator below to learn about the fields in the Add Edit Indicator window Multiple Indicators Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 195 StreetSm
257. es Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Options Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC OPTIONS TRADING TAB View the calls and puts being traded for a stock and place trades on individual contracts in the Options tab of the Trading Window Enter the underlying symbol select the option you wish to trade select the variables for the order such as Quantity Limit Stop prices and more Then click the button for the action you wish to take Buy to Open Sell to Close etc to send the order The Options Trading tab includes real time streaming options data and for clients approved for options trading automatic electronic access to all primary listed options exchanges You may also trade index options such as OEX Use the Adv Options tab to if you wish to place multi leg option trades 5 Trading 2 00000000 Microsoft Corp File Settings Stocks Options Adv Opt MSFT 26 73 SET z Sellto Chse Buy to Open M Cale V Pas Nes Selit
258. es and the execution price for each fill Commissions Fees and other events such as dividend payments and other corporate actions are not included in this calculation As shares contracts are added to a position the new cost is based on an average share contract price Liquidations of shares do not impact the average share price This method of calculation is the same as for a Mutual Fund and does not consider lot accounting which allows for the management of positions based on FIFO or LIFO accounting rules What does the asterisk next to the cost figure mean An asterisk indicates that the cost displayed is probably incorrect When summing the executions for your position if the ending position amount differs from the position received from the position database it will be marked with an asterisk Please be aware that fill events that occurred prior to January 2004 will not be included in the calculation of the cost for your position How is the P amp L calculated The Cost amount is compared to the Market Value and the difference is the profit or loss on your position TRANSACTIONS Can I Control the Volume of Transactions sent to me when I Update Yes The 30 day setting is a default value Simply click in the Days field and change the number to the number of days to want to see You can set the value anywhere in the range of 1 to 30 days The higher the value the more days of transaction data you will receive and the longer it take
259. es are applied to real time data in order to flag occurrences of the selected strategy crossing whatever threshold is set by the strategy Using Strategies You can apply strategies in several ways Follow the links below to learn about each approach e Apply a built in strategy e Create a new strategy either based on a built in strategy or from scratch e Edita built in or saved strategy and then apply it To learn how to understand the results of running your strategies in any of the Strategy Tools click on the specific tool name below e Strategy Tester e Charts e Strategy Matrix e Strategy Ticker APPLYING BUILT IN OR SAVED STRATEGIES Several common strategies are provided with your software to get you started Using these at first can help you learn the tools as well as learn to create your own strategies TIP The following steps apply to any of the Strategy Tools The only difference is that the Chart window only allows one Strategy to be applied at a time whereas the other tools allow multiple strategies at once Exceptions for this difference are noted below 1 In the strategy tool of choice click Settings gt Strategy Center in the menu for Charts click Tools gt Strategy Center Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 191 StreetSmart Pro User Manual 2 The Strategy Center opens showing a list of Available Strategies Selected Strategies the strate
260. eshooting CONFIGURING THE SYSTEM To Change General Software Settings Go to the Main Menu and choose Settings gt General Change any of the following settings in the General Settings panel Make server adjustments NOTE Server adjustments should be made only after consulting with a Schwab Active Trader Broker or Technical Support Services Representative Change to from a free floating windows layout Auto save your layouts Increase your timeout setting from 1 to 8 hours NOTE If you leave your computer logged on overnight there are some circumstances where you may find that you are still logged on the following morning If this happens you must log off and log back on before placing any trades Choose to use an internal or external browser Increase or decrease your Update Rate This will control the speed of the data that your CPU must process If you have a slower processor it may be helpful to reduce this rate SYSTEM REQUIREMENTS To effectively run StreetSmart Pro your computer must meet these minimum requirements Windows 2000 or the Windows XP operating system This application is NOT available for Macintosh or Linux operating systems All versions should be run in conjunction with Microsoft Internet Explorer 6 0 or higher due to encryption requirements You can experience logon issues if you do not have IE 5 5 or higher Netscape and other browsers are not recommended Pentium III type processor 50
261. ess days of the purchase the sale of these securities will constitute a free ride under Federal Reserve Regulation T This will result in a 90 day settled cash up front restriction EXAMPLE If you sold a fully paid for security on Monday the 1st you could use the proceeds to purchase new a security prior to the settlement day of Thursday the 4th 3 day settlement However if you sold the newly purchased security prior to the settlement date Thursday the 4th you would then be required to deposit funds to pay for the purchase If you sold the new position on Thursday the 4th or anytime there after no additional funds would be required Cash Displays the Cash Secured Requirement 100 of assignment Secured Put value of the put position when a Cash Secured Equity Put is in Assignment the account This balance will only display if you have placed a cash secured equity put and will be located below the Settled Cash available to trade balance Cash amp Money Market Trading in the Cash Account Settled funds are e incoming cash such as a deposit or wire e settled sale proceeds of fully paid for securities Settled funds may be used for purchases of securities If a security is purchased using settled funds there are no requirements surrounding the timeframe of when the newly purchased securities can be sold However if unsettled funds are used to purchase securities and the customer sells the securities prior to making full p
262. est expiration month Select the expiration month for the option position you wish to Close and the month for the position you wish to Open Setting the Open to Near will automatically select the next nearest month beyond the current month Calendar Select the Near and Far expiration months Spread 5 Select whether you want to view combinations that are At the Money In the Money Out of the Money or to see all at once leave the default All Money Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 139 StreetSmart Pro User Manual Collar Select whether you want to view combinations that are Straddle Around the Money Above the Money Below the Money or to see all at once leave the default All Money 6 Select whether to display Calls or Puts applies to Rollout Vertical Spread Calendar Spread and Combination orders only 7 Select the Strike Range which will show you potential trades where the difference between the two contract prices is equivalent to the strike range ou specify Applies to Rollout Collar and Calendar Spread orders Vertical Select the Spread Range which will show you potential Spread spread trades where the range between the two contract strike prices is equivalent to the spread range you specify 8 Now decide whether you want a net credit or debit for the order TIP The debit is the ask price of the option being bought The credit is the b
263. estment in case the price of the underlying security goes down Put sellers hope the price will stay the same or go up Put Call Ratio Based on CBOE Chicago Board Options Exchange statistics the Put Call Ratio equals the total number of puts divided by the total number of calls All stock and index options traded on the CBOE are included in the calculation Typically there are more calls traded than puts so the ratio is usually below 1 When more puts are traded than calls the ratio will exceed 1 As an indicator the Put Call Ratio may be used to measure market sentiment Quantity The number of shares you want to buy sell or sell short 384 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference AIBICIDIJEIFIGIJHITIJI KILIMIN JO P IQ RIS TJUIVI WI XIYIZ Rate of Change The Rate of Change percent is a momentum oscillator that measures the percent change in price from one period to the next The Rate of Change is plotted as an oscillator that fluctuates above and below a zero line Reaction A temporary price reversal within the prevailing trend Regulation T Call Also called a Fed Call this is the amount an investor must deposit if buying on margin or selling short as required by the Federal Reserve Board s Regulation T Current Federal Reserve requirements are 50 of the cost of the trade Relative Strength A comparison of an individual stock s performance to that of a market
264. ew file with a check mark to the left of it If you saved the file as an existing file name the file name will be displayed under File gt Recently Viewed Query Files but the new query added to the list will be located under User Queries The title bar will show a new line with File name of your file example shows Technology qry Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 353 StreetSmart Pro User Manual List 15 Day Sma 0 2 Above File View Settings Built In Queries User Queries 354 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener Query Filter Descriptions last retrieved data every 15 seconds maximum High Highest price the stock has reached that day Open Price at the most recent open Price at the most recent close updated at 6 a m Eastern Time Daily High Count Number of times a new High has been reached that day Daily Low Count Number of times a new Low has been reached that day Highest price a stock has reached in the past 52 weeks not including today 52 Wk Low Lowest price a stock has reached in the past 52 weeks not including today 52 Wk High Daily Shows the distance between the 52 Week High and the High Daily High i e if the stock s 52 week high is 45 and the daily high is 42 this column will show a 3 52 Wk Low Daily Shows the difference between the 52 Week Low and Low the Daily Lo
265. f 31 minus 6 20 20 of 31 s 31 and the Conditions that cause the alert to fire Alert will fire if the Ask rises to 33 or more Alert will fire if the Ask falls to 29 or less Alert will fire if the Ask rises to 34 or more The alert Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts reference point is based on the current Ask of 32 plus 2 points Intermediate Ask Loses Alert will fire if the Ask falls to 30 or less The alert reference point is based on the current Ask of 32 minus 2 points Intermediate Ask Gains Alert will fire if the Ask rises to 38 40 or more The alert reference point is based on the current Ask of 32 plus 6 40 20 of 32 Intermediate Ask Loses Alert will fire if the Ask falls to 25 60 or less The alert reference point is based on the current Ask of 32 minus 6 40 20 of 32 Volume Alerts No scenario is required to understand Volume Alerts Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 265 StreetSmart Pro User Manual Level of Complexity Basic Basic Intermediate Intermediate 266 eee Volume Increases to to Volume Decreases Volume Gains Volume Loses Value Points Shares or 1 000 000 1 000 000 1 000 000 1 000 000 Is Trailing Stop Available Yes but serves no purpose Yes but
266. f MSQ EK 25 14 net credit Day for account 00000000 Do Not Place Order Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 141 StreetSmart Pro User Manual Extended Hours Trading EXTENDED HOURS TRADING Extended Hours Trading is made possible by computerized order matching systems known as ECNs or Electronic Communications Networks Generally Schwab routes all Extended Hours orders to the Archipelago Exchange The Schwab Pre Market After Hours order routes are available to you if you wish to route your extended hours orders in this way With Direct Access you can send orders for NASDAQ equities direct
267. fit or loss the a buy Performance and hold strategy would of generated based on its initial equity Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 203 StreetSmart Pro User Manual Buy amp Hold P amp L Initial Equity 100 Buy amp Hold Annual Percentage Rate for buy and hold strategy This value APR is reached by multiplying a year 365 days by the Buy amp Hold Performance and then dividing by the number of days in the simulation Simple interest used Buy amp Hold APR 365 Buy amp Hold Performance Days in test Sharpe Ratio Risk adjusted profitability for the test time period IRX will be used for the Risk Free Rate of Return in the Sharpe formula Winning The total number of trades that made money excluding open Trades positions Losing The total number of trades that lost money excluding open Trades positions Trade Profit Total profit from all profitable trades excluding open positions Trade Loss Total loss from all losing trades excluding open positions Final Equity Ending equity from test includes equity in open positions Highest Highest amount of cash position s value equity Note Calculation is based on closing price of each bar and balance includes open positions Lowest Lowest amount of cash position s value equity balance STRATEGY TESTING IN CHARTS See a graphical representation of your Strategy Tester resu
268. funds If 100 of the trading activity occurs on margin there will be no difference between the settled funds to trade balance and the total available to trade balance Traders that fit this profile will not be affected by the special requirements that may result from Cash Account trading activity Traders that occasionally trade non marginable securities in the Cash Account should continue reading Settled funds are e incoming cash such as a deposit or wire e available Margin Loan Value e settled sale proceeds of fully paid for securities Settled funds may be used for purchases of securities If a security is purchased using settled funds there are no requirements surrounding the timeframe of when the newly purchased securities can be sold However if unsettled funds are used to purchase securities and the customer sells the securities prior to making full payment these newly purchased securities may be subject to special requirements Securities purchased using unsettled funds should not be sold prior to the settlement of the funds used to purchase these securities generally 3 business days after the sale of the security which generated the funds If these securities are sold prior to settlement of the financing sale then additional funds will be required to be deposited in 279 StreetSmart Pro User Manual the account to cover the cost of the newly purchased securities If no additional funds are deposited within 5 busin
269. g either the NASDAQ and NYSE Top Ten window or both e As new stocks enter the Top Ten lists they are highlighted in baby blue e This window is active only during the standard session During the pre market session it will remain empty and during the after hours session will display information based on the close of the standard session e NOTE Fora security to be displayed on the Top Ten list it must be above 2 per share Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 317 StreetSmart Pro User Manual To open the Top Ten windows 1 Goto Tools gt Start Tools 2 Put a check next to NASDAQ Top Ten NYSE Top Ten or both 3 Click Start or 1 Click on the Top Ten icon 19 in the toolbar 2 If neither window is open NASDAQ or NYSE clicking on the toolbar icon will launch both windows 3 If one window is open clicking on the toolbar icon will launch the window that is not open FILE Close Closes the Top Ten window Visible Boxes Check Top Volume Gainers Decliners to see that data in your Top Ten window Uncheck to hide that box Visible Columns Each box above can show up to three columns of data the viewing or hiding of these is controlled here Check next to Volume Change from Close or Change from Close to view uncheck to hide Layout Vertical layout will align boxes above each other Horizontal layout will align them side by side Sort Gainers Decliners by
270. g when the trade price falls below the 20 period SMA Mov Avg Sim 200 Strategy that enters long exits short when the Price Cross trade price moves above the 200 period SMA and enters short exits long when the trade price falls below the 200 period SMA Mov Avg Sim 50 Strategy that enters long exits short when the Price Cross trade price moves above the 50 period SMA and enters short exits long when the trade price falls below the 50 period SMA Mov Avg Sim 50 Strategy that enters long exits short when the 50 Sim 200 Cross period SMA moves above and enters short exits long when 50 period SMA falls below the 200 period SMA Mov Avg Smo 10 Strategy that enters long exits short when the 10 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 199 StreetSmart Pro User Manual Smo 20 Cross Mov Avg Smo 20 Price Cross Mov Avg Smo 200 Price Cross Mov Avg Smo 50 Price Cross Mov Avg Smo 50 Smo 200 Cross RSI 14 Level 70 30 Cross Stoch D 14 3 Level 75 25 Cross Stoch K 14 D 14 3 Cross Stoch RSI 14 Level 75 25 Cross Williams R 14 Level 25 75 Cross period SmMA moves above and enters short exits long when 10 period SmMA falls below the 20 period SmMA Strategy that enters long exits short when the trade price moves above the 20 period SmMA and enters short exits long when the trade pri
271. general NOTE Because error messages are displayed in this window it s important to keep it open at all times You can Scroll up or down to review all activity that has occurred during the current trading session Check the status of an order placed during your current logon session See why an order might have been rejected Get color coded order status ULLA Current session settings and added Alert details Black Market session opening and closing information AME Any messages related to orders Black with yellow highlight When an alert is triggered Calculate Change from Open Allows you to view your positions as either a change from open or change from close The default setting for account positions is a change from the previous day s close Order Cancel Confirmation If checked the software will ask for confirmation before canceling an order This setting is active only if you have turned off Order Verification in the Trading Window lites is Seton Ga tan eae gt General gt Orders tab Use this isnot hs deen N to Use this option to change the Account Detail font settings the Account Detail font settings Use this option to Use this option to change the Account Detail colors si the Account Detail colors To activate the Sound Alert option you must have a sound card and speakers The system will alert at the following instances Log On Log Off Live order entered Order filled and Orde
272. get the same error message after you have confirmed that your version of Internet Explorer has 128 bit encryption repeat the process and reboot your computer If that still does not work contact your Schwab Active Trader team and ask to be connected to Technical Support Sometimes I see trade restrictions in effect and trade restrictions lifted What is that and why does it hinder my ability to place orders in my account You may see a note in your Messages Window stating the following trade restrictions in effect and then later a Message Window note stating trade restrictions lifted Trade restrictions occur when the balances positions and transactions B P amp T that are sent from Schwab do not reach and post to StreetSmart Pro As such the program cannot verify what the BP amp T for the account currently is so trading gets restricted This message has nothing to do with restrictions or issues at the account level As this does inhibit trading you can always logoff and then logon again This normally will correct the problem and allow for you to be able to do trading If this is not successful contact your Schwab Active Trader team I got my StreetSmart Pro software from a friend How do I get set up StreetSmart Pro is offered at no charge to a select group of non professional Schwab Active Trader clients based upon trading frequency If you did not receive 396 Copyright Charles Schwab amp Co Inc 2006 All rights res
273. gies that are currently being used in that tool and buttons allowing you to manage these two lists Stratepy Center Available Strategies Selected Strategies Adaplive RSI 14 Price Cross Mow Avg Sim 20 Price Cross BOL Envelope 21 3 Price Cross Bolinger Bands 20 2 2 Price Cros DrMj D DMI Di oss Envelope 21 3 Price Cross MACD 12 26 SL 12 26 9 Cross Money a eo eae Exp 10 Exp toss g Exp 20 Price Cross amp Remove 19 Exp 200 Price Cross _ lt Remove Exp 50 Exp 200 Cross Exp 50 Prce Cross Geo 10 Geo 20 Cross Geo 20 Price Cross Geo 200 Prce Cross 1g Geo 50 Geo 200 Cross Geo 50 Price Cross v New Edt Copp Delete Notes Strategy that enters long exits sheet when the trade price moves above the lower band on a 20 period 3 Mowing Average Envelope and enters shoit ents long when the price fals below upper band OK Cancel Heb 3 To see what an individual strategy does click on it and a description of the strategy will display at the bottom of the window 4 To apply the strategy click the strategy in the Available Strategies list and then click Add The strategy will be added to the Selected Strategies list for Charts click the strategy and check Show selected strategy on chart 5 Click OK to apply the changes to the tool Refer to the topics for each individual Strategy Tool to learn about the
274. gle Book NASDAQ has integrated SuperMontage INET and BRUT branded market data facilities into a Single Book While the integration does not impact the existing order routing venues and order types the migration results in Level II data display changes within StreetSmart Pro The software consolidates SIZE BRUT and INET quotes into one INET quote at each tier Visit the NASDAQTrader com for more information on the NASDAQ Systems Integration e Day orders are available if Auto Cancel time is set to 0 e Default cancellation time 0 seconds e Trading Hours 7 00 a m to 8 00 p m ET BRUT Order Routing Order Types Description Limit These orders are not displayed in the BRUT book The order executes through the inside price whether in the market or in the BRUT Book up until the limit is reached at which point the order will time out Non Marketable Limit Orders Will try to match with any other order on the BRUT book If no match is found will post to the BRUT order book Day orders can remain on the book until the end of the day Limit Invisible Invisible orders are never displayed in the book or in Level II and therefore never cross or lock the market Market Market orders are available during the standard session only If the full quantity cannot be matched in the book the remaining shares will be routed via the BRUT Liquidity Finder Orders are sent out at NBBO only Execution will only stop if order executes in full
275. gt Find Active Tool This will show all the active windows Click on the window you are looking for and it will be displayed on top of the window that it was hidden behind I cannot see the Tabs on my windows how do I add them From the menu of Charts Watch Lists Top 10 or High Low Tabs gt Enable This will show two or more tabs in the active windows From the Tabs menu you can also Insert new tabs or Edit existing tabs LEVEL II QUOTES FAQ Why don t I have any streaming data in the Level II panel Market Makers and ECNs are only shown when you are viewing a NASDAQ security These will not be shown when you are viewing a Listed security unless you are using the Direct ECN quotes All StreetSmart Pro users can use the Direct ECN quotes but not all StreetSmart Pro users are eligible for Level II quotes For more information on eligibility for Level II please contact your Schwab Active Trader team To access the Direct ECN quotes go to Settings gt General gt L2 Data tab and select from the available ECNs Direct INET and ARCA quotes are normally available for any NASDAQ or Listed security TRADING WINDOW FAQ What is the Level II showing me in the Trading window The streaming boxes display Level II data representing the number of shares available at a specific price for a specific Market Maker ECN or exchange From left to right e The first box indicates the bid prices and associated available shares currently ava
276. gy Name of the strategy that generated the notification e Bar Size Size of each bar used for which the signal was generated i e 5 Minute 10 Minute 15 Minute 30 Minute 60 Minute or Daily e Time Date and time the signal was generated e 20 Day Avg Volume Average volume for the security over the last 20 days e 5 Day Avg Volume Average volume for the security over the last 5 days e Open Point change in the security s price since the Open e Close Point change in the security s price since the previous Close e Open Percentage in price change in the security s price since the Open e Close Percentage in price change in the security s price since the Close price e Profit Exit When the strategy has a Money Management Profit Exit indicator defined a hypothetical Profit Exit is calculated based on the price at the time of the signal If the trend is Up the percentage will be added to the price If Down it will be subtracted e Stop Loss When the strategy has a Money Management Stop Loss indicator defined a hypothetical Stop Loss is calculated based on the price at the time of the signal If the trend is Up the percentage will subtracted from the price If Down it will be added Hide Column Header Check the box to hide the column names Colors Change color settings with this option Fonts Change font settings with this option Copyright Charles Schwab amp
277. h List How do I enter options in a Watch List 1 Go to the Watch List window 2 Click Settings gt Symbols List 3 Enter a period followed by the option symbol for example INQFF or enter the option symbol and o as in INQFF o 4 Click OK How do I enter an Index in a Watch List 1 Go to the Watch List window 2 Click Settings gt Symbols List 3 Enter a followed by the Index symbol See Index Symbols 4 Click OK Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 405 StreetSmart Pro User Manual 5 The option symbol will appear in the Watch List window How can I tell if I entered a bad symbol If the text in the window reads Requesting Information for stock Index option symbol and does not update or you see Symbol in the title bar of the window you have entered a bad symbol To find the correct symbol 1 Go to the StreetSmart Pro Toolbar and click the Symbol Lookup icon A 2 Enter the symbol or as much company information as you have 3 Click OK How do I enter a Preferred or a Stock Class symbol using StreetSmart Pro When you are entering a symbol into Trading window the text will always display in uppercase For Preferred stocks you use a Shift P when entering in the symbol will denote that you are requesting a quote for a Preferred stock For example PCGpA For a Stock Class quote you use a to indicate you are requesting a specific class of s
278. h trade EXAMPLE In the image below we have a Bollinger Band study along with a strategy utilizing a Bollinger Band indicator You can see where the closing price of any 15 minute bar crosses over the lower line an entry is triggered and where it crosses above the top line the position is exited xd A 4 Chart 2 Amazon com Inc File Edit view Insert Settings Tabs Tools 1min 3min 15min Daily Weekly AMZN Intraday 15 minute 10 day Strategy Performance Details For the historical testing tools like the Strategy Tester and Charts Performance Details provide a wealth of data for each stock and strategy combination being tested It not only summarizes all the data collected in the process of the test such as performance percentages buy amp hold performance stats winning losing trade stats hold times etc but it also breaks down each execution each round trip trade and tracks equity history You can even change your Strategy Tester settings i e changing the estimated commission per trade quantity per trade initial equity period for the test etc to see immediately how they affect the bottom line in the test 188 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools H Strategy Performance Details Strategy Tester SEE Performance Summary Executions Trades Equity History Settings Parameter SLB Mov Avg Sim 20 Price Cross T
279. harles Schwab amp Co Inc 2006 All rights reserved 0106 5667 25 StreetSmart Pro User Manual Color Selector Background m J m O ro m Gj m O Cancel Defaults i Figure 2 Controls Charts Highlight the area you want to change and click the color wheel to assign a color Colors Select the item you wish to change then press the color button to change Default Colors Cancel Figure 3 Controls the Trading Window The lower area gives you several color options for Level II for which you can choose one of the built in color schemes or you can choose Custom and create your own color for each individual level 26 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Color Selector L2 Background MM s Time amp Sales Background ECNs Watches met imi L i AE EEEE g ERE Ree EE EEE Eee BEE EBE Quote Changes Price Levels Custom Inverted I Col oI Repeat Color Sche C Repeat Last Color Custom colors BEER ES amp amp BEES Ea a Define Custom Colors gt gt Cancel Change Fonts The software allows you to change the font for each window The default font is MS Sans Serif Regular To Change the Font 1 Click Settings gt Fonts in the Menu Bar of the window you want to change 2 Make your changes and click OK TIP Bold Fonts Using bold fonts
280. hat enters long exits shost when the trade price moves above the lower band on a 20 period 3 Mowing Average Envelope and enters short ents long when the price fals below upper band OK Cancel Heb Strategy Tester Provides the ability to search through historical performance results of back tested technical strategies It can help you identify the following e Best performing Securities for a given Technical Strategy and Bar Size e Best performing combination of multiple Securities Technical Strategies and Bar Sizes e Best 50 performing Technical Strategies for a Security and Bar Size F Strategy Tester File view Settings Help Perform 0 7 5 5 5 5 3 1 5 g MN WN N a N faja Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Charts Visualize your back testing entry and exit points for individual positions in your charts The Charts tool has the same strategies available to it as the Strategy Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 187 StreetSmart Pro User Manual tools and many of the studies in the Charts can be viewed in concert with the corresponding Strategy to help you identify what triggered eac
281. he DX and selling when the DI falls below the DX 14 Day Directional The Directional Movement study indicates the strength Movement DX of a trend independent of whether that trend is up or down The study combines several components DX measures upward moves DI measures downward moves DX combines DX and DX and ADX is a smoothed version of DX 14 Day Average Assesses the strength of current trends in a stock s DM ADX movement as well as helping point out when a market may be changing from trending to non trending and vice versa ADX is calculated by taking a modified moving average of DX PE Ratio Price Earnings Ratio measures how expensive a stock is i e the cost an investor in a stock must pay per point of current annual earnings EPS Ratio Earnings per Share shows net income divided by the number of shares of a company participating in the profits This gives a good indication of the earnings ability of a company Dividend Taxable payment declared by a company s board of directors and given to its shareholders out of the company s current or retained earnings Market Cap Market value of all of a company s outstanding shares PS Ratio Price to Sales Ratio shows a stock s capitalization Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 361 StreetSmart Pro User Manual divided by its sales over the previous 12 months Revenues minus cost of sales operating expenses and taxes
282. he Left Center Right positions and the bottom row selections will appear at the bottom of the page Choose either the provided fields such as Tab Name Date amp Time Account Number etc or choose Custom and enter your own header or footer content When you are finished customizing your print job go to File gt Print and click OK when you are ready to send the page s to the printer 36 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Quick Reference QUICK START GUIDE Now you can stay plugged into the fast changing market with StreetSmart Pro Schwab s leading edge suite of real time streaming market data software and advanced trading features for your desktop It s easy to get started e Check the system requirements and be sure your system can meet them e Since you need an Internet Service Provider ISP to run the software connect to your ISP before you begin e If you have trouble installing the software call your Schwab Active Trader Broker e Read through the Quick Reference topics below to learn about each tool in your software QUICK REFERENCE WINDOWS amp LAYOUTS Minimize Click in the top right corner of the frame to minimize StreetSmart Pro all windows unless you have chosen Free Floating Frame Windows To restore the frame click the StreetSmart Pro icon on your desktop Task Bar Use the Window Click in the window that contains the data
283. he Move Up Move Down buttons to change its location in the list TIP If you only want to rearrange the columns but not add new ones you can right click on the column header and select a different column for that position or you can use drag and drop Available Columns eee Option strike price price at which the option may be exercised Symbol Option symbol Price at which the option last traded Time of Last Time at which this option last traded Net change from yesterday s close price Current inside ask price Cumulative volume for the day Open Interest Total number of outstanding option contracts in a particular series Implied The estimated volatility of a stock underlying an option Volatility based on the option price Indicates how much the price of a call option moves for every one point move in the price of the underlying security Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 109 Current inside bid price The available number of contracts for the bid and ask displayed as bid quantity x ask quantity StreetSmart Pro User Manual Gamma Measures the change in delta for a change in the underlying stock price Theta The change in option price in relation to the time left before the option expires The change in option price in relation to a 1 change in volatility The change in the price of an option resulting from a 1 change in interest rates Ask Implied Impl
284. he ask at 65 25 and moves up to 65 35 an up arrow will appear e You can also view the Status of the bids and offers Check Show Status of Bid Ask in the Trading window Settings gt General window to display O open meaning this is a current valid quote for the participant L open for trading but the quote has not been refreshed K closed for trading Time amp Sales Time amp Shows every trade being reported through NASDAQ and the Sales INET book trades denoted by inet as well as the share size of the trade and the time of the trade Time amp Sales is color coded Green Prints at the inside Ask Red Prints at the inside Bid Prints in between the inside Bid Ask Yellow Prints above the inside Ask Purple Prints below the inside Bid Chal Gib Inside quote change e TIP Set the number of trades back to view through the Settings gt General menu To expand this view up to the last 1000 trades right click in the T amp S window and select Request Expanded T amp S GETTING QUOTES IN THE TRADING WINDOW There are several ways to load a symbol into the Trading window e Enter the symbol of the security in the Symbol box and press Enter Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 69 StreetSmart Pro User Manual e Click on the arrow in the Symbol field to show recently entered stocks then click on the one you want to load into the Symbol box for a quote MSFT v
285. he more liquid the stock Locking the Market Market condition in which there are identical bid and ask prices for a stock Look back Period The look back period is the number of periods minutes days weeks months used to calculate an indicator For example a 14 day RSI would have a look back period of 14 days AIBICIDIJE IFIGJHITIJ KILIMIN JO P Q RIS TJUIVI WI X Y Z Maintenance Call A call for additional funds or acceptable collateral to be immediately deposited into your margin account This type of margin call is generated when the equity in a margin account does not meet an established minimum requirement This can be caused by fluctuations in market prices or your additional use of margin Margin Account This type of brokerage account allows you to borrow funds using your own marginable securities as collateral The borrowed funds may be used for the purchase of more securities Margin Balance The net open balance in your margin account If negative this is the amount owed to the brokerage firm If positive the balance is available to earn interest Margin Call 378 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference This term refers to both maintenance calls and Regulation T calls also called Reg T or Fed calls An investor who receives a margin call is required to deposit additional funds or securities in a margin account either because the equity in the accou
286. he stock or the ask price if you are short Referencing the example in Share P amp L above your Trade P amp L would be 300 00 If you want to exit your position with a 600 00 profit or 20 gain the Trade P amp L would need to gain 100 Alternatively you could designate the Trade P amp L to Increase to 600 00 Bid Bases your alert on the inside Bid price Ask Bases your alert on the inside Ask price Volume Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 249 StreetSmart Pro User Manual 250 Bases your alert on the daily cumulative volume Trade Price Bases your alert on the last sale price reported CAUTION It is not uncommon for erroneous trade reports to come through the Time amp Sales display with prices away from of the market If an erroneous price triggers your order it is your responsibility and a subsequent execution cannot be reversed Exercise caution when basing Conditional orders on Trade Price Alternatively the current Bid or Ask can be used to achieve result that closely matches the Trade Price variable Change from Open You can set up an alert to trigger based on the difference between the current price of a stock and the price at the open Note that the change amount itself is used as a basis for the calculation so that if the current Change from Open is 10 and you want an alert to trigger when the Change from Open is 30 we would need to set an alert that
287. heir symbols 14 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Symbol Lookup Lookup by Name C Symbol Security Type V Stock Index In the main menu click Tools gt Look Up Symbol or A click the icon in the toolbar e Enter the name or as much partial information as you have and click Enter You may also check the Symbol option and simply enter a ticker symbol to get a company name This can be done for either Stock or Index e The closest matches to what you entered will appear at the top of the list e You can load the data directly into the Quotes Window by right clicking the symbol and selecting Load symbol into Trading Window e Clicking on Name and Index will give you a list of all indices Find Active Tool Restores active windows that may be hidden or minimized Click Find Active Tool and then select the window you wish to view Schwab com Quotes and Opens a Schwab com browser session to the Quotes amp Research Research tab Ken Tower Recap of the previous trading day and a technical forecast Daily of the upcoming day Comments Ken Tower In depth review of the past trading weeks with an analysis Weekly of the market s long term trend Comments Market Edge Access stock ratings workshops market commentary and Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 15 StreetSmart Pro User Manu
288. hen the Relative Strength Index RSI declines below 30 It is important to keep in mind that oversold is not necessarily the same as being bullish It merely infers that the security may have fallen too far too fast and may be due for a reaction rally AIBICIDIJE JFIGIHITIJ KILIMIN JO P IQ RIS T UIVI WI XIYIZ Pay Date The date the shares from a split or dividend are paid to the shareholders Percent Retracement The amount that price retreats following a high can be measured using a technique referred to as Percent Retracement This measures the percentage that prices retrace from the high to the low For example if a stock moves from a low of 50 to a high of 100 and then retraces to 75 the move from 100 to 75 25 points retraced 50 of the original move from 50 to 100 Measuring the percent retracement can be helpful when determining the price levels at which prices will reverse and continue upward Position Holdings in an account or portfolio Position Trading Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 383 StreetSmart Pro User Manual Position trading means holding open positions for an extended period of time Contrast this with day trading where a trader buys then sells before the market closes that day Preferred Stocks A class of stock that pays dividends at a specified rate and has preference over common stock in the payment of dividends and the liquidation of assets Preferre
289. holders out of the company s current or retained earnings Dollar Volume The dollar amount of shares contracts traded for the day on a security or options contract Calculated as VWAP Volume Weighted Average Price multiplied by the day s total volume Ending Ask Ending ask price of the market session Ending Bid Ending bid price of the market session EPS 12 Mo Earnings Per Share shows net income divided by the number of shares outstanding for a company for the last 12 months Exchange Exchange NYSE NASDAQ etc on which the security is listed Expiration Shows the expiration date of the option chains in your Watch List Gamma Measures the change in delta for a change in the underlying security price GICS Code Global Industry Classification Standard code A two to eight digit ordered code that indicates a company s sector industry and sub industry High Highest price at which the security has traded for the day Impl Vol Estimated volatility of a security underlying an option price based on the option price Impl Vol Ask Implied Volatility based on ask price Impl Vol Bid Implied Volatility based on bid price 300 Industry GICS Global Industry Classification Standard Industry classification From broad to specific helps define a company s business focus Also helps identify competitors Last Price Last trade price for a stock or the last value for
290. hort will not fire if you do not hold the underlying security however if you hold a position liquidate it and then re enter the position the alert established for the original position will apply to any new positions For example if you hold ABCD and have an Alert with a conditional order to sell ABCD that is based on a prior entry point once the Alert conditions have been met the Alert will fire and the order will be sent While there are mechanisms in place to try to prevent an oversell if you manually exit a position you should ensure that you do not have open Alerts with conditional orders to sell that position e Alerts Stop Losses and Conditional orders that have not fired will automatically be cancelled at the end of the standard session 4 00pm ET if you check Keep alert active after logoff AND Day Alert when setting up the alert or if neither is checked and you do not log off before the end of the standard session e If just Keep alert active after logoff is checked but not Day Alert the alert can stay active for up to 60 days e Itis important to review your conditional orders carefully If you do not select Confirm order before sending which allows you to review your order at the time your alert conditions are met you will not have an opportunity to review or verify your Stop Loss or Conditional order once the Alert you have set is triggered You may change or cancel this order while in its conditional state prior
291. ication will be better than the prices for the separate legs combined will be uncommon Please note the indicative prices are not firm quotes and may not be available when an order is sent for execution Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 123 StreetSmart Pro User Manual Buy Write In a Buy Write the individual purchases a stock and simultaneously writes calls against it If the call expires out of the money the investor will have collected the premium of the option he is effectively generating income against his long position Additionally the investor will participate in any rise in the security up to the strike price of the option If the option expires in the money it will be exercised and the investor will have to sell his shares at the given strike price On the downside the underlying security has to fall further than the collected premium before money is lost so the written call also gives a limited amount of downside protection This strategy is different from covered call writing only in that the investor does not own the security prior to selling the option contracts For use when investor anticipates e Flat to Slowly rising market Financial Characteristics e Maximum Loss Stock price premium for written call In addition investor has opportunity cost of stock appreciation beyond the strike price of the call e Maximum Gain Call premium plus stock appreciation up to
292. ice to current price Chg Prev Total change for the security between the last and second to the last trade Close Closing price from the previous market session Close Far Close Crossing price at which orders in the closing book would clear against each other NASDAQ stocks only Close Imbalance Number of closing shares that would remain unexecuted at the current reference price and the side of the imbalance buy sell or none if there is no imbalance Applies to NASDAQ and NYSE stocks Close Near Close Crossing price at which orders in the closing book and continuous book would clear against each other NASDAQ stocks only Close Paired Number of closing shares that are able to be paired off at the current reference price Applies to NASDAQ and NYSE stocks Close Ref A Close price within the NASDAQ inside at which paired shares are maximized the imbalance is minimized and the distance from the bid ask midpoint is minimized Applies to NASDAQ and NYSE stocks Delta Indicates how much the price of a call option moves for every one point move in the price of the underlying Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 299 StreetSmart Pro User Manual security Description Full name of the company security or index Div Amount Taxable payment declared by a company s board of directors and given to its share
293. ics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Charles Schwab amp Co Inc is a SIPC member Please contact a tax advisor for the tax implications involved in the options strategies referenced AIBICIDJEIFIGJHITIJ KILIMIN JO P IQ RIS T UIVI WI XIYIZ Above the Market A limit order to buy or sell a security for a specified price that is higher than the current market price A sell order may be placed above the market in an attempt to sell at higher prices However if the market does not reach these prices the order will go unfilled Above the Money For straddles and collars strike prices of the call and the put are above the current price of the underlying security Advance Decline AD Line The Advance Decline AD line is the cumulative total for the difference between the number of advancing stocks and the number of declining stocks in a given market The AD line for the New York Stock Exchange NYSE is the most widely used measure of market breadth If there are more advances than declines the AD is a positive number if there are more declines the AD number is negative That daily number is added to the cumulative AD line The AD line gives us information on whether the majority of stocks are following the trend of the commonly followed stock indices
294. id price of the option being sold The net is the difference between the bid price of the option being sold bid and the ask price of the option being bought ask Buy Write When opening a Buy Write you will need to select the Unwind price from the Debit side and when closing Unwind select from the Credit side Straddle The net is the total of the two bid prices of the options being sold bid or the total of the two ask prices of the options being bought ask S all Puk Buy Call Sel Put Exch Net Size Exch Net Size Sell Call Buy Put MOF EC MOF OB Buy 15 00C Sell 10 00P 1 CBOE 1015C 2738 Seb 18 00C Buy 10 00P MOF EW MOF QV Buy 175007 Sell 12 50P CBOE 765Cr 2905 Sef 17 80C Buy 1250P MQFED 7 MQF QC Bw 2000C Sell 15 00P 1 CBOE S15Cr 3329 Sef 20 00C Buy 15 00P MSO EX MOF OW Buy 22500 Sell 17 50P CBOE 265Cr 3629 Sef 2250C Buy 17 50P MSO EJ MOF OD Bw 25 00CY Sell 20 00P f CBOE O35Cr 5837 Seb 25 00C Buy 2000P MSO EY MSO OX Buy 27 50C Sell 2250P Sel 27 50C Buy 2250P MSQ EK MSQ QJ y S00C Sell 25 00P CBOE 015C 6217 I Sef 30 00C Buy 25 00 P MSG Ez MSO OY Buy 32500 Sell 27 50P C80E 2200 3978 I Sef 3250C7 Buy 2750P MSO EL 7 MSO GK Bw 300C Sell 30 00P CBOE 4650 4590 I Sel 35 00C Buy 30 0 P 9 Select the Exchange you wish to price indications for from the drop down list Sell Call Buy wri CBOE Net Size Sell 7 50 C 7 54Dr 4E Sell 10 00 C 10 04Dr F Sell 12 50 C 12 54Dr 5 Sell 15
295. ied Volatility based on ask price Volatility Bid Implied Implied Volatility based on bid price Volatility PLACING AN OPTIONS ORDER The following figure shows the Trading window open to the Options tab 3 Trading 2 00000000 Microsoft Corp File Settings Stocks Options Adv Opt MSFT 2673 SelltoChse Buy to Open W Cale V Pas Neg v SelitoOpen Buy to Close Strike 0 05 0 05 0 05 MSQ KI Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients To Buy or Sell an Option 1 Access Options trading by clicking the Options tab in the Trading window 2 Check either Calls Puts or both and select an expiration month 3 Click on the option of choice in the Options Window 4 Click one of the following options NOTE These buttons are only actionable if you have been approved to trade options Sell to Close Click to sell any long option positions that are currently 110 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading in your account Buy to Open Click to buy new long option positions for your account Sell to Open Click to create new short option position in your account Buy to Close Click to
296. ients who meet certain eligibility requirements based on trading frequency This offer may be subject to additional restrictions and may be changed at any time The speed and performance of streaming functionality may vary depending on your modem speed ISP connection and the number of securities you maintain on your Watch Lists You need a Pentium 266 MHz or better processor 128 MB RAM or more and a 56k or better modem DSL or cable modem to receive the best possible experience of streaming quotes and news on StreetSmart Pro StreetSmart Pro provides advanced market information for your desktop and allows you to place orders It also allows you to connect and place trades through schwab com This User Manual explains how to use StreetSmart Pro s trading capabilities and provides instructions on how StreetSmart Pro can be used with schwab com This manual is designed to give you easy to use step by step instructions for using StreetSmart Pro Access to Level II data requires meeting certain eligibility requirements based on trading frequency For additional information please contact your Schwab Active Trader Team The market data used in this manual is for illustrative and educational purposes only and is not intended to reflect actual trading behavior or other characteristics of any securities or company This manual was developed for use with StreetSmart Pro and should not be used for other trading software or channels You will rec
297. il investor Around the Money For strangles and collars strike prices of the call and put lie on opposite sides of the current price of the underlying security Ask The ask price is the displayed price at which a market maker or specialist offers to sell a stock At the Money An option is at the money if the strike price of the option equals the market price of the underlying security A BIC DJE FIG H I J K NIOIPIQIRISITIUIVIWI ILIM XIYIZ Bar Chart In a bar chart each time period is represented by a vertical bar that represents the range between the high and low prices A bar chart displays more information than a line chart which only shows the closing price for each period Some variations on the standard bar chart are the following HL only the high and low price for each time period HLC the high low and close and OHLC open high low and close Bear Trap A bear trap occurs when prices break below a significant level and generate a sell signal q v but then reverse course and negate the sell signal thus trapping the bears that acted on the signal with losses Below the Market A limit order to buy or sell a security for a specific price that is lower than the current market price Buy orders may be placed below the bid in an attempt to purchase at lower prices However if the market does not reach these prices the order will go unfilled Below the Money For straddles and collars strike price
298. ilable for the specified security Full share amounts are displayed e The middle box indicates the ask prices and associated available shares currently available for the specified security e The last box Time amp Sales is a running log of the trades executed for the specified security This shows Time and Sales of the trade as it is reported to NASDAQ and not the actual time that the MM traded the stock 90 second reporting rule 398 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference To learn more about NASDAQ Level II quotes see the Streetsmart Pro Trading Window Platform course available by clicking on the Education Weblink icon by How do I view Options in the Trading window 1 Enter the underlying stock symbol in the Symbol field and press Enter 2 Choose the Options tab in the Trading window 3 You can choose to view only calls or puts for the nearest month You can also select a specific month for any options cycle What does the Ratio represent in the Trading window The left side of the ratio represents the number of shares currently reflecting a bid price at the inside bid The right side of the ratio displays the number of shares currently reflecting an ask price at the inside ask Can I change the way the ratio is displayed You can change this ratio to represent the number of Market Makers available at the inside bid ask prices Simply 1 Click on the Tradi
299. iling to confirm each other This can be viewed as a warning signal that the prevailing trend may be about to reverse Dividend Amount Value of last quarterly cash dividend or the number of shares an investor receives for each share owned in a stock dividend Dividends Reinvestment The application of cash dividends from an equity security to purchase more shares of the security Do Not Reduce DNR Instructs the broker not to reduce the limit price by the amount of the cash dividend when a stock goes ex dividend and the market price is reduced by the amount of the dividend You can specify DNR on limit orders to buy stop orders to sell or on stop limit orders to sell Double Tops and Bottoms Generally considered to be reversal patterns double tops or bottoms show as two prominent peaks or troughs on the price chart The first peak or valley is typically formed on relatively high trade volume and the second on relatively low volume The reversal is considered complete when the middle peak in the case of a double bottom or trough in the case of a double peak is broken Dow Jones Industrial Average DJIA Published by Dow Jones amp Co the Dow Jones Industrial Average DJIA is a price weighted average of 30 blue chip stocks Because it is price weighted stocks with the highest prices will have the most influence and those with the lowest the least influence The DJIA is calculated by adding the closing prices of the 30 st
300. ill post on Level II if it does not cross or lock the market Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 103 StreetSmart Pro User Manual e Odd lots are NOT allowed e Day order available if Auto Cancel time is set to 0 e Default cancellation time 180 seconds e Trading Hours 8 00 a m to 5 00 p m ET ONTD Order Routing Order Types Description Only limit orders are available through ONTD The order will not fill at a less favorable price than the limit you set Times In Force Description Day Can be entered after 8 00 AM ET and expire at the end of the extended trading day 5 00 p m ET The information provided on this page is subject to change at any time NASDAQ SUPERMONTAGE SuperMontage is NASDAQ s display and order execution system designed to help reduce market fragmentation provide best execution expand the number of choices to Market Participants and better handle the growth of the market General Information e SuperMontage system will attempt to match your order with the best price available at the time it is received e Non marketable SuperMontage order may be posted to the Level 2 as SIZE e Odd lots are accepted but will be grouped with other odd lots to create round lots before being executed e Hours Marketable limit orders and market orders may be entered into SuperMontage during the normal market hours of 9 30 a m to 4 00 p m ET SuperMontage is
301. in the Watch List To save your changes see Save Watch Lists SORT WATCH LIST DATA It s easy to sort data in your Watch Lists to extract information like e The day s best performers e The stock in your Watch List with the highest trading volume To activate this feature go to Settings gt Columns and check the Enable Sorting box e With Enable Sorting checked you can sort the data by clicking the column header for the criteria you want sorted If you want to reverse the sorting order of the column click the column header again You can then select Auto Sorting Auto Sorting allows you to select one column to determine the order in which your symbols are displayed For example when you have Enable Sorting and Auto Sorting selected click on the Volume column The securities with the highest volume for the day will now be displayed first and as the data changes through the day it will continue to sort so 304 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools that the stock with the highest volume stays at the top To reverse the order that they are displayed click the Volume column header again NOTE If you want your symbol list to be in the same order as when you set up the list uncheck Enable Sorting WATCH LIST GROUPS Not only may you add individual symbols to your Watch Lists you may also add Symbol Groups which can help you organize your symbol lists and manag
302. in the left most column Because of the speed of execution and the short life span of market and marketable limit orders canceling these orders may not always be possible TRADING WINDOW MENU The menu bar is accessible by right clicking in the Trading window and selecting Show Menu Bar Will close the Trading window To reopen click the Trading window icon in the Main Tool Bar or go to Tools gt Start Tool and change the number of Trading Windows SETTINGS Allows you to change general settings for Orders Level I and II data and Time amp Sales Refer to the Trading Window Settings topic for details about this important feature Hot Keys gt Number Pad allows you to assign either Symbols or Number Pad Quantities to the keys on your keyboard number pad Number Pad Enable Number Pad Hot Keys Use for Symbol Load C Use for Quantity J Aggregate Quantity Increments A E a E E 1 Mz 2fcscol 3f cores Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients 1 Check Enable Number Pad Hot Keys 78 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading 2 Decide whether to use the number pad keys for S
303. in to apply the color NOTE Once a Trend line has been drawn it can be moved Moving the trend line is done by clicking on the line to modify and then either end of the line can be adjusted to fit the slope of the line to the chart Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 183 STRATEGY TESTING TOOLS 185 StreetSmart Pro User Manual Strategy Overview Find out how you would have done in the market if you had used a particular technical strategy The Strategy Tester is our backtesting tool that combines technical analysis strategies with historical market data to help you make future trading decisions You can load results from the Strategy Tester into the Chart tool and the Strategy Ticker tool to help you find buy or sell opportunities in real time To open the Strategy Tester click Bin the Toolbar StreetSmart Pro offers a comprehensive suite of tools that work in concert to assist in providing a more user friendly approach to technical analysis than is often found in institutional trading software If you use trading strategies based on technical analysis principles or if you are interested in using back testing as part of your stock selection process the following tools aim to facilitate your efforts Strategy Center At the heart of the Strategy tools is the Strategy Center where you create save and manage all the strategies you use in the Strategy tools A strategy
304. index Most times the S amp P 500 or the Dow Jones Industrial Average are used for comparison purposes A rising line indicates that the stock is doing better than the market A declining line indicates that the stock is not doing as well as the market Relative Strength Index RSI Developed by J Welles Wilder in 1978 the Relative Strength Index is one of the more popular momentum indicators Its name Relative Strength Index is slightly misleading as it does not compare the relative strength of two securities but rather the internal strength of a single security The RSI is a price following oscillator that ranges between 0 and 100 Wilder argues that the RSI usually tops above 70 and bottoms below 30 and that these tops and bottoms usually form before the underlying price changes direction When Wilder introduced the RSI he recommended using a 14 day RSI Since then the 9 day and 25 day RSIs have also gained popularity The fewer days used to calculate the RSI the more volatile the indicator One popular method of analyzing the RSI is to look for a divergence in which the security s price is making a new high but the RSI is failing to surpass its previous high This divergence may be interpreted as an impending reversal If the RSI then turns down and falls below its most recent trough it is said to have completed a failure swing The failure swing is considered a confirmation of an impending reversal Resistance and Support Su
305. ing Windows topic in the Getting Started section for more information SETTINGS Select the earliest date from which you wish to get technical analysis for the security Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 221 StreetSmart Pro User Manual Earliest Signal Date Date 11 13 2004 v Strategy Select the Strategies you wish to monitor Center Click on any strategy to view its description at the bottom of the window Strategy Center Available Strategies Selected Strategies Adaplive RSI 14 Price Cross Mow Avg Sim 20 Price Cross BOL Envelope 21 3 Price Cross Bolinger Bands 20 2 2 Price Cros OM DMI Di Cross MACD 12 26 SL 12 26 3 Cross Money Flow 20 Level 0 Cross Exp 10 Exp 20 Cioss Exp 20 Price Cross amp Remove Exp 200 Price Cross Exp 50 Exp 200 Cross Exp 50 Prce Cross Geo 10 Geo 20 Cross Geo 20 Price Cross Geo 200 Pree Cross Geo 50 Geo 200 Cross Geo 50 Plice Cross v News Edt Copy Delete Notes Strategy that enters long exits sheet when the trade price moves above the lower band on a 20 period 3 Moving Average Envelope and enters shoit exts long when the price fals below upper band OK Cancel Heb To add a strategy to the Selected Strategies list click on it in the Available Strategies list and click the Add button To remove a
306. ing correctly Check by trying to connect to the Internet with another application e Is your telephone data cable line connected to your PC e Have you dialed into your ISP and established a connection PROBLEM Cannot Connect Error Message Invalid Password or ID Disconnected from Data Servers Data Is Not Updating LIVE HELP POSSIBLE SOLUTION Complete the ISP checklist above If you re using behind a firewall or proxy server environment which are common in the workplace contact your Network Administrator and go to the Menu Bar and choose Settings gt General to correctly configure the software StreetSmart Pro requires a Schwab logon ID Social Security Number or self selected User ID and password not your Schwab account number and password Contact your Schwab Active Trader Broker if you need assistance setting up your logon ID If you lose your connection the software will automatically try to reconnect any lost connections If the automatic reconnection was not successful go to the Main Menu Bar click Help gt Reconnect to Servers If the problem persists log off File gt Logoff then log back on File gt Logon Contact your Schwab Active Trader Broker if you are still unable to connect Complete the ISP checklist above Charts Not Try changing the background color to white for a clearer Printing Clearly image The Live Help window allows you to communicate directly with a S
307. ing market news as it comes out throughout the day e Query for news by keyword or symbol or e Set watch lists to see only news on specific symbols amp News 1 Breaking News File View Settings Breaking News Recent Stories AMGN News Watch MELBOURNE Dow Jones Mining giant Rio Tinto Ltd RTP said Wednesday it achieved record iron ore production in the third quarter as its jexpansion program boosted capacity Rio which is the world s second biggest jproducer of iron ore produced 35 74 million metric tons of iron ore for the quarter up 11 on the Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients FILE Page Setup Enables you to customize the current page for printing Read the Printing Windows topic in the Getting Started section for more information e Click to send the news to your printer for a hard copy e Fora shortcut right click in the Preview window and 332 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 News click Print Story Click to close the News window Open or close the Preview panel by clicking View gt Preview or right clicking at the bottom of the News window and selecting Show Preview Wi
308. ing to a built in query Go to the Stock Screener Menu Bar and click View gt Query Description Go to the Stock Screener Menu Bar and click User Queries Clicking Edit will allow you to edit User Queries while clicking New will allow you to create a new query 1 Go to the Stock Screener Menu Bar and click File gt Save Query File As A pop up box will appear allowing you to save the query to your computer s hard drive Select the location where you wish to save the query Saving your query in the same place as the built in query will make it easier to find all of the queries in one location Type the name you wish to save it as and click OK 4 You will see the file you just saved appear under File The 5 most recent files that you viewed will be displayed with the most recent one checked The title bar will show a new line with File name of your file example shows Technology qry Right click on the symbol in the Stock Screener window and click Load Symbol into Trading Window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 43 StreetSmart Pro User Manual Quote fora symbol in the Stock Screener QUICK REFERENCE LEVEL II Obtain Level II Access If you are unable to see Level II quotes check to see if you are eligible Go to the Trading window Settings gt General gt L2 Data If you are qualified for Level II access you should be able to click the Book qu
309. ion a market participant just moved in relation to the inside price EXAMPLE If Market Maker ABCD is on the bid at 65 20 but backs off to 65 17 a down arrow will appear at the new price level If ABCD moves back up to 65 20 an up arrow will appear To add this to your display go to Settings General gt L2 Data tab and click Show Directional Quote Change Arrow e Show Status of Bid Ask You can view the Status of the bids and offers Check Show Status of Bid Ask in the Trading window Settings gt General window to display O open displays a current valid quote for the participant L open for trading but the quote has not been refreshed K closed for trading D Time amp Sales Shows every trade being reported through NASDAQ and NYSE plus the INET book trades denoted by inet as well as the share size and time the trade was reported Time amp Sales is color coded These colors may be changed by going to Settings gt Colors in the Trading window menu The default colors are e Green Trades at the inside Ask e Red Trades at the inside Bid e Trades in between the inside Bid Ask e Yellow Trades above the inside Ask e Purple Trades below the inside Bid e RSCG Inside quote change Not a transaction Set the number of trades back to view through the Settings gt General menu To expand this view up to the last 1000 trades right click in the T amp S window and select Request Expand
310. ions or other fees To correct this value use either the drop down or right click menu and select Adjust Cost You may enter the total amount paid or received for the position using this function Once this has been done the asterisk will disappear even though future fills will not include commissions and therefore may not be absolutely accurate You may adjust the cost as often as you like Profit Displays the unrealized profit or loss on the position in dollar or Loss in format P amp L is calculated based on an average price paid per Dollars share NOTE Lot accounting is not used so P amp L is NOT calculated on a LIFO FIFO basis See example in P amp L Calculations topic There are limitations on the reporting of transactions events that make up the P amp L amounts Displays the unrealized profit or loss on the position as a Profit or percentage P amp L is calculated based on an average price paid Loss asa per share percentage e oo s NOTE Lot accounting is not used so P amp L is NOT calculated on a LIFO FIFO basis See example in P amp L Calculations topic There are limitations on the reporting of transactions events that make up the P amp L amounts This stands for Dividend Reinvestment Instructions Certain stocks and mutual funds pay a dividend These dividends may be reinvested into additional shares of the security or can be paid to you in cash depending upon your instructions Yes indicates that the
311. irectors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients When checked Sell All allows you to sell your entire position including fractional shares via SmartEx As the quantity field does not allow the input of fractional shares using the Sell All checkbox is the only way to send orders to sell fractional share amounts When Sell All is checked e The Quantity field displays the full share amount available for sale including fractional shares This quantity takes into account any open orders that you may have and any shares held that are currently non negotiable This amount cannot be changed when Sell All is checked e The Sell All checkbox can be turned on and off If turned off the quantity will revert to the default amount designated in the Trading window Settings gt General window e If you are using Sell All to sell your remaining fractional shares only Market Orders are allowed SPECIAL CONDITIONS SETTINGS Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 91 StreetSmart Pro User Manual SmartEx orders can be qualified with the Spec Cond Special Conditions checkbox The Spec Cond box is already checked as the default and opens the Execute SmartEx Order window allowing you to customize your order with special conditions when you submit or save an order NOTE Using order qualifiers can delay the execution of your order
312. isen 20 from its value at the time that you created the alert Trade P amp L of 1000 plus 20 Advanced Trade Alert will fire P amp L if the Bid drops to 30 80 or less At that time your Trade P amp L has decreased 20 from its value at the time that you created the alert Trade P amp L of 1000 less 20 Share P amp L Alerts Scenario e You bought 1000 shares of stock at 30 The current Bid is 31 and the current Ask is 32 e Based upon the Original Trade Price of 30 that you enter the software has calculated your current unrealized gain Share P amp L as 1 per share 31 30 260 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Level of Variable Value Is Trailing Conditions Complexity Points Stop that cause Shares Available the alert to or fire Advanced Share Increases Alert will fire P amp L to if the Bid rises to 32 or more At that time your Share P amp L equals or exceeds 2 points Bid price of 32 minus your original Trade Price of 30 Advanced Share Decreases Alert will fire P amp L to if the Bid drops to 28 or less At that time your Share P amp L equals or exceeds 2 points original Trade Price of 30 minus the Bid price of 28 If you had entered this as positive 2 points the alert would have fired automatically fire because the current Share P amp L of 1 point is already less than
313. ith the up or down arrows to the Width right of the field The higher the number the bolder the line in the chart NOTE A higher setting may cause distortion to the graph Data to Specify the number of days to display in the chart at any one show time NOTE This is only applicable when the Show all data field is unchecked Show all If checked shows chart for the time frame specified in the Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 157 StreetSmart Pro User Manual Range days If unchecked this will display what is indicated in the Data to show field A scroll bar will appear at the bottom of the chart allowing you to move back and or forth through Range days selected Price scale Specify the increments for the price scale from 05 to Auto or s Logarithmic Once a price interval is selected not Auto or Logarithmic you can manually input an interval You should select an interval that is appropriate to the price range of the security you are charting for the selected Range days e Default is Auto which allows the software to select the optimal scale based on the size of the chart e Logarithmic or percentage scaling will change the price scale s appearance by making the vertical spacing between two points correspond to the percentage change between those numbers So for instance the vertical distance between 10 and 20 and the vertical distance between
314. its can change the multiplier The multiplier is the number of shares that an equity option will convert to if exercised AIBICIDIJE FIGIHITIJ KILIMIN JO P IQ RIS TJUIVI WI yap ale Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 381 StreetSmart Pro User Manual NASDAQ Formerly known as the National Association of Securities Dealers Automated Quotations system designed to facilitate over the counter stock trading The NASDAQ is now an exchange and is no longer an acronym NASDAQ Composite Index The NASDAQ Composite Index is a market capitalization weighted index of over 5000 stocks Because it is weighted by market capitalization large companies such as Microsoft Intel WorldCom Sun Microsystems Dell Computer and Oracle dominate the index With such large portion of the index dominated by technology stocks the NASDAQ Composite is more a barometer for the technology sector than the broader market NASDAQ National Market NNM Consists of More than 3 900 companies that are the larger and generally more actively traded NASDAQ securities National Best Bid or Offer NBBO NBBO represents the bid and ask price that will display in Level I Negative Divergence When two or more indicators indexes or averages fail to show confirming trends Net Change The amount and direction of a security s price change since its previous close Odd Lot An amount of stock consisting of less than 100 shares
315. ive unless triggered during the current standard session and will automatically deactivate at market close 4 00 p m ET To make your alert persistent Day check Keep alert active after logoff AND Day Alert when setting up your alert Day Alerts can be set up any time but must be manually activated by you on the day you wish to use them This alert type can be activated anytime beginning at midnight ET and throughout the trading day until market close Logon Session Only This type of alert initiated by not checking Keep alert active after logoff remains active only while logged on to the system If you lose your connection to the StreetSmart Pro servers any open alerts will remain on the system for 10 minutes This allows you to log back in without losing the alerts You must reestablish your connection within 10 minutes to ensure that any outstanding alerts are not lost If you do not log off or get disconnected and your alert has not triggered it will be deactivated at the end of the current standard session 4 00 p m ET Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 237 StreetSmart Pro User Manual triggered it will be deactivated at the end of the current standard session 4 00 p m ET BASIC GUIDELINES ABOUT ALERTS 20 You can activate alerts outside of standard market hours but because alerts require updated Level 1 quote information to function they will not be initialized or bec
316. k Line Open _Defauit Colors e LinefHigh Default Colors LinefLow cancel _ TABS For more on tabs visit the Adding Tabs to Windows topic Add more tabs than the 2 added when enabled Edit the selected tab Remove the selected tab Use same When checked all of the tabs within the Chart window will symbol for all use the same symbol When unchecked all of the tabs can tabs have specific symbols saved within the tabs Clicking Enable will create 2 tabs in the Chart Window your current chart plus an additional chart which you can customize separately using the Tabs gt Edit menu item The software allows you to add a vast number of studies to your chart for technical analysis 1 Highlight the study you wish to add in the left column Click the gt gt to move it to the box on the right Choose the Show In option and place the study in any of the five options in the drop down menu Click OK for information on each available Strategy Center Open the Strategy Center to apply a strategy to the chart Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 159 StreetSmart Pro User Manual You can also edit or create a new strategy from the Strategy Center To add a strategy to the chart click on the strategy in the Available Strategies list and check Show selected strategy on chart Edit Strategy Opens the Edit Strategy window for the strategy currently applied to
317. k in the contract size field and type in a new contract size Dollar sign This button allows you to base the number of contracts you place your order for on the amount of money you want to spend on the trade EXAMPLE You have 10 000 to spend on a option that is trading at 5 on the inside ask so you click on the button type 10000 click OK and the contract size field will fill in with 2000 NOTE Commissions are not included in this calculation Close sid Shows yesterday s close price for the option Shows the lowest price the option reached today Spread shows the difference between the inside bid Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 115 StreetSmart Pro User Manual and ask prices Expiration Month Shows the month and year that the selected option will expire Strike Price The available strike prices for the selected Expiration Month are listed here Click on the arrow to scroll through the list and select the strike price you desire The Level II display will change to show the details of the option at that strike price V Action Buttons Sell to Close Click this button to sell long call or put options Buy to Open Click this button to establish call or put options Sell to Open Click this button to write covered calls or puts Buy to Close Click this button to close a covered call or put position Cancel Click this button to cancel any pending
318. k mitigation and income generation EXAMPLE Sell Write Currently XYZ trades at 25 share An investor would like to participate in some of the downside movement in the stock and generate additional income at the same time Using the Sell Write strategy the investor sells the stock 100 shares and sells one out of the money put 20 strike price for 3 00 per contract for a total cash credit of 300 00 If the stock declines below 20 00 share the total gain is capped at 800 00 The stock must rise above 28 the breakeven price before the investor loses money so the short put provides limited upside protection Sell Write Gain Loss at Expiration 1 000 800 600 400 200 0 200 400 600 800 1 000 short stock covered put or oO 3 5 i z l lt 17 19 21 23 25 27 29 31 33 STOCK PRICE in dollars Unwinds Unwind is the term used to refer to the order that closes out the positions opened in a buy write or sell write strategy The unwind for the example in sell writes above would be to buy XYZ and to buy to close the 20 short put Unwinds should be viewed more as a closing transaction than as a true option trading strategy Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the
319. l Defaults Proxy You can change Proxy configurations if you use a Proxy server or are behind a firewall Contact your Network Administrator for the Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 13 StreetSmart Pro User Manual appropriate settings Level II Click to get information on subscribing to Level II Data in your Subscriptio StreetSmart Pro software n Change the font style and size as well as the Script style of your balances that are displayed at the top of the application Account You can assign a nickname to the account youre viewing by Nickname entering the nickname and clicking OK TOOLS Start Tool This feature allows you to change the windows that are open in the software Windows listed on the right can only have one open instance put a check next to the windows you wish to have open Start Tool regia a Nasdaq Top Ten Chat INYSE Top Ten Watch List es naan a ene fo MiStiategy Matie High Low naa d MISuatagy Tester Sectors 4 Web Browser fo ai Stock Screener jo Piin Ticker b Options Top 10 Class fo Options Top 10 Series 0 4 Options Top 10 Singe 0 H Scan Ticker pit Eran Symbol Lookup Use this tool to look up the name or symbol of a company For example if you do not know the symbol for a company you can type in the full or partial name of the company and get back a list of companies with similar names along with t
320. l accept with any amount up to the specified Quantity thereafter Available for limit IOC orders only Specifies the reserve size for the order Must be a round lot equal to or less than the order quantity Reserve size has no time priority in Level II Only the displayed portion of the order will have time priority EXAMPLE You enter a bid with 5 000 as the total quantity but 1 000 as the Max Floor value Your order will display as 1 000 shares but if yours is the only bid when an offer arrives for 10 000 shares at your price your entire 5 000 shares will execute However if 3 other bids for 3 000 shares each were behind you at the same price only your displayed 1 000 would execute along with 9 000 shares from the other three bids Peg Diff Added to the bid or offer to produce the actual order price Allows more flexibility in your order EXAMPLE To peg the offer minus 02 Peg Diff must equal 0 02 the negative sign is required Features only available when Spec Cond is checked in the Trading window The information provided on this page is subject to change at any time To get the most current information please go to the INET web site ONTD ECN General Information e Order goes directly to the ONTD order book to search for a match If a better price is available it will target that price e If your price is not available in the book it will post on Level II as ONTD The best bid and ask posting 100 or more shares w
321. l language search engine to help you find the information you need more quickly GLOSSARY INDEX ETC These features are located in the Reference tab on the right side of the Help window There you ll find e Glossary e IDs includes Market Participant IDs e Comprehensive FAQ s Frequently Asked Questions e Printable User Manuals e User Agreements e Link to Customer Education on Schwab com ABOUT THIS USER MANUAL This Educational Guide and its content including price and volume data screen samples and queries are for informational and educational purposes only Although it may provide general information relating to trading or investment approaches you should not construe anything in the guide as legal tax and investment financial or other advice Nothing contained in the guide constitutes a solicitation recommendation promotion endorsement or offer by Schwab of any particular security transaction or investment strategy Schwab makes no recommendations or endorsements with respect to any of the strategies chart patterns or indicators referenced nor does Schwab recommend the use of technical analysis as a sole means of investment research At Schwab we recommend that investors define their goals risk tolerance time horizon and Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 393 StreetSmart Pro User Manual investment objectives in addition to researching possible investme
322. l open that allows you to change all four price points for that period open close high low Click the Delete icon to see a list of studies and trend lines in the most recently accessed chart so that you may delete one or more of them You can also chose Delete All Studies to clear all studies from the chart Delete will not clear support and resistance lines You must right click on the line and select Delete to remove it Switch between Bar Candlestick Line or Point amp Figure chart types Read more about each of these graph styles in the Chart Menu Bar topic Click to hide or show the vertical time lines on the chart Click to hide or show the horizontal price lines on the chart Click the button and then click on the chart to apply a Best Fit Regression trend line to the chart Read more about Best Fit in the Trend Lines topic Click the button and then click and drag a line on the chart to apply a trend line that snaps to the open high low or close of the trend being studied To change which price the trend line snaps to the default setting is Close click the Edit Trend Lines button in the toolbar and choose the Snap To line you wish to edit Read more about Snap To in the Trend Lines topic Fibonacci Click the button and then click on the chart to draw a Retracement Fibonacci Retracement line Read more about Fibonacci lines in the Trend Lines topic Fibonacci Fan Click the button and then click
323. l outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies All strategies described herein require the use of a margin account Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC PLACING STOCK TRADES Place stock trades and get Level I and II data in the Stocks tab of the Trading Window Enter a symbol select the variables for the order such as Quantity Limit Stop prices and more Then click the button for the action you wish to take Buy Sell etc to send the order You may route an order from the Trading Window using the following steps For more detailed information about each feature of the Order Entry panel go to the Stock Tab Features topic 62 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Quantity j 100 H if p a SmartE x wil Spec Cond Sell _ Buy action Lirnit v i wil Sell Short eae Buttons Order Route Order Time in Sell All Special Type Force TIF Conditions
324. l risk associated with the expiration weekend If the long put is exercised the investor ends up with a short position in the stock Good news during the weekend could force even greater losses on the investor before he can exit the short equity position The maximum profit or gain is realized if the stock prices goes to zero EXAMPLE Long Put Currently XYZ trades at 25 share The investor employs the strategy of buying one in the money put strike 30 for 6 00 share 1 contract 600 Using this strategy the investor pays a cash debit of 6 00 This is the maximum loss the investor can incur If the stock increases to 31 00 share the long put will expire worthless and the investor loses the 6 premium The maximum gain if the stock price is lower than the strike is the difference between the put strike and the closing price less the premium debit spent in buying the put If the stock is trading at 19 then 30 19 6 5 profit The break even point for the strategy occurs when the price of XYZ is at 24 Long Puts Gain Loss at Expiration A S E ua z L no Z lt g 15 20 25 STOCK PRICE in dollars Short Put The Short Put generally will allow an investor to profit from upward movements in the underlying security or index It uses the exact opposite structure as the Long Put If the security rises in value the investor can generally profit The maximum the investor can profit is the premium received by
325. lated to the computer on which you make them If you access your software from another computer you will need to change your timeout settings there as well SuperMontage This will automatically send a cancel after the number of seconds you put into the text box for SuperMontage orders only The default setting is 0 seconds which means it will remain live until canceled or executed DISPLAY SETTINGS The number of seconds that direct ECN orders are live before the system auto cancels them A value of 0 disables auto cancel The default is 180 seconds To find out which ECNs post orders to their books go to that ECNs section in this manual or visit their website As ECN information changes on a regular basis the most reliable information will be found on their website Compute Ratio from Quantities If checked the ratio display in the Trading window will display number of shares available at the inside Bid vs the inside Ask If unchecked the ratio shows the number of participants at the inside Bid vs the inside Ask Calculate Change Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Choose whether change is calculated based on one of the 83 StreetSmart Pro User Manual from following e Open Calculates change from the Open price e Close Calculates change from the current day s close The change will recalcuate when the exchange close
326. lbar you can access the Introduction to the Stock Screener amp Stock Selection module located the Education page within the StreetSmart Pro Center If after reading this section of the manual and experimenting with the Stock Screener you still are unable to create a query to suit your needs consider using our built in queries to use as a guideline or call your Schwab Active Trader Broker for assistance With the Stock Screener you have the ability to construct queries based on hundreds of variable combinations These variables can be compared against each other or compared against a value set by you Then stocks meeting these criteria can be displayed in a list Each list view can contain up to 50 stocks and show up to 48 columns of data about each stock retrieved by the query all of which can be moved removed added subtracted and resized StreetSmart Pro allows you to open up to 10 separate lists at once The stock screener results are based on current quote information for the standard as well as the extended hours sessions OPEN THE STOCK SCREENER 1 Go to the Tools menu and select Start Tool 2 Next to Stock Screener List and increase the field from O to 1 by using the up arrow located to the right of the field 3 Click Start The Stock Screener Query window will automatically be displayed or e Click on the Stock Screener icon ae in the toolbar The Stock Screener query window will automatically be displayed allowing
327. ld in your margin account Settled Cash Trading in a Cash account requires using Settled funds If a to Trade security is purchased using settled funds there are no requirements surrounding the time frame of when the newly purchased securities can be sold Settled funds are comprised of incoming cash such as a deposit or wire transfer any available Margin Loan Value or settled proceeds from the sale of securities that have been fully paid Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 285 StreetSmart Pro User Manual Positions POSITIONS TAB The Positions tab displays all open positions for a given account The positions are displayed with real time quotes regardless of which Schwab venue you used to enter or exit the position The Market Value is calculated based on the number of shares and the current price The Price is the current last trade price streaming The Change value is the Change from Close If you prefer to view the Change from Open go to Settings gt General 48 Account Detail 00000000 File View Settings Alerts Positions Order Status Saved Orders Alerts Balances Positions Transactions CISCO SYSTEMS INC 1 772 00 CISCO SYSTEMS INC 8 860 00 IBASIS INC f 960 00 INTL BUSINESS MACHINES 238 380 00 INTEL CORP 25 280 00 SUN MICROSYSTEMS INC 3 942 24 TIPS Open Positions Window The Open Positions window View gt Positions in the Accoun
328. les Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts CHARTING MENU BAR FILE Load Default Loads the Default settings to a chart or tab Set as Default Click Set as Default when you want the Chart window or individual tab to open with the current settings every time you open a new chart TIP The defaults work on an individual tab basis so if you set a default in one tab it is the settings of that tab that become the default not the settings of the whole chart window Reset Default Return to the program Default settings Page Setup Enables you to customize the current page for printing Read the Printing Windows topic in the Getting Started section for more information Print Click to print the chart currently displayed close Click to close the chart currently displayed Printing Charts Tip If charts are not printing clearly try changing the background color to white EDIT Symbol Changes the symbol current being displayed in the Chart NOTE This can also be done by right clicking on the chart or by just typing a new symbol when the Chart window is active Tick Data Allows you to change specific bad data displayed in a chart that may impact the technical studies you are using To edit tick data 1 Click on the bar line or candle that has bad data Click on Edit gt Edit Tick Data The date at the top should be for the date you last clicked if it is not you can select the date o
329. lick OK e You can add several symbols at once by clicking Settings gt Symbol List in the Watch List menu Fill in the Symbol field click on the name of the group you wish to add it to and click Add Symbol to Group e To remove a symbol right click on it and select Remove symbol Symbol List Track List Add Symbol to Group Insert Symbol Remove All Symbols SAVE WATCH LISTS You can save as many different Watch Lists as you like To Save a Watch List 1 Go to the Watch List Menu Bar and click on File gt Save Watch List As 2 Type in the file name and click Save 3 The stk file will save to your Stocklists folder unless you specify another location HYPOTHETICAL OPTION PRICING Hypothetical Option Pricing available by right clicking on any option symbol in a Watch List and selecting Hypothetical Parameters for symbol allows you to manually adjust variables involved in option pricing to see how changes affect the option values This is one way to test your assumptions to see what the price of the option would be if your assumptions hold true Below are a couple of examples on how this function can be used 306 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools EXAMPLE 1 You are bullish on a stock but decide to purchase calls instead of the stock so you can get more leverage You anticipate the stock will go up about 2 points in the next week You use th
330. lified for Direct Access trading Confirm Choose to have an order verification window pop up when the Order order conditions are met and the order is sent Before Note that if you are not logged onto the system to confirm your Sending order at the time the order is triggered it will not be sent Command Displays a full description of the Alert you have set up Description Panel When conditional orders are set up an Order Verification window will be displayed if you have Order Verification enabled Click OK to prepare the Alert and Conditional order for activation or click Save to save your alert to a file To load your alerts at a later time select Load in the Alerts menu and then select your saved file ALERT TEMPLATES StreetSmart Pro provides you with e Sample standard templates for commonly used trading strategies They can be customized or deleted e An Alert Templates feature that allows you to add your own templates with specific pre set Alert Trailing Stop or other Conditional order criteria 254 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts e Standard or customized template that can be activated by right clicking on any open position from the Account Detail window and selecting the Template name Alert Templates Edit Remove Ask Increases Load Buy In O Sevens Day Alert Save As Margin Equity Warning S
331. linger Bands expand and contract based on the standard deviation of the historical volatility of the price action The formulas for the upper and lower bands are UpperBand SMA m F LowerBand SMA m F f ae E where m is the number of standard deviations and the formula for is gt Price SMAD jmt x 1 z Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 169 StreetSmart Pro User Manual Directional Movement DX DM DI Positive DM DI Negative Envelope The Commodity Channel Index CCI measures the variation of a security s price from its statistical mean High values show that prices are unusually high compared to average prices whereas low values indicate that prices are unusually low Contrary to its name the CCI can be used effectively on any type of security not just commodities The formula is CCH t osx z Bars gt DP 72 imt Ntl 78 imt tl where _ High Low Close 7 3 Typ The Directional Movement study indicates the strength of a trend independent of whether that trend is up or down The study combines several components DI measures upward moves DI measures downward moves DX combines DI and DI and ADX is a smoothed version of DX The basic Directional Movement trading system involves comparing the 14 day DI Directional Indicator and the 14 day DI This can be done by plotting the two indicators on top of
332. ll information is as of the current trading day However please refer to the Daily List for final verification of daily changes or additions Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 395 StreetSmart Pro User Manual FAQs GETTING STARTED FAQS What are the minimum system requirements to run StreetSmart Pro StreetSmart Pro is designed to work on Windows 95 98 ME NT XP and 2000 systems with 128 MB RAM and 40 MB of available space on the hard drive To check your RAM 1 Click the Start button then Settings gt Control Panel 2 In this window double click System This will launch a dialog box displaying your installed RAM StreetSmart Pro also requires a connection to the Internet with at least a 56K modem Cable or DSL connection is recommended When I try to connect to StreetSmart Pro with Microsoft Internet Explorer I get the error message Cannot connect to CyberTrader What should I do 1 Check to be sure your version of Internet Explorer is equipped with 128 bit encryption You can verify this by opening your browser and clicking on Help gt About Internet Explorer 2 Under the version number you will see Cipher Strength If it does not read 128 bit click the link Update Information This will take you to the Microsoft website where you can download the latest version 3 Once you have 128 bit encryption try connecting to StreetSmart Pro again If you continue to
333. ll your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy CHARTS FAQ How many charts can I see at once StreetSmart Pro allows six charts to be viewed at once How do I compare a stock chart against another symbol or Index In the Chart window menu bar 1 Go to Settings gt General 2 The General window provides an Overlay Symbol option which allows one stock or Index symbol to be entered 3 Enter the symbol and click OK 4 The chart will now compare your original stock to the symbol you just entered 5 This symbol will continue to be reflected on all stock charts generated in this Chart window until you manually remove the symbol by going to Settings gt General deleting the symbol in the Overlay Symbol field and clicking OK How do I change the symbol in the Chart window 1 Click on the chart and type a new symbol 2 Then press Enter to display the new chart Or you can link the Chart window to the Trading window by going to Settings gt Links in the Trading window See the Trading window section for more information How do I change the Chart variables Go to the Chart window Menu and choose Settings gt General This will allow the chart to be set with the different types of charting styles and time frames How can I see all of the information regarding my studies in the Info window Copyright Charles Schwab amp Co Inc 20
334. lts in a chart View the entry and exit points the strategy identifies and instantly see if the stock really did move up or down To set up click Tools gt Strategy Center in the Chart menu The image below shows long entry and exit points based on the Bollinger Band strategy which was applied to the chart 204 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools i Chart 2 Amazon com Inc File Edit view Insert Settings Tabs Tools 1min 3min 15min Daily Weekly AMZN Intraday 15 minute 10 day Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients The strategy testing tools available in the Strategy Tester window are also available here in the Chart window e From the Settings gt Back Test menu you can change the settings for the back test such as commissions quantity per trade and initial equity Refer to Back Test Settings to learn about each of those settings TIP When establishing Back Test settings for a strategy being used in a Chart the Bar Size and Number of Bars for Test is effectively the same thing as the Interval and the Range in the chart Settings gt General e From the Tools m
335. lumns of data the viewing or hiding of these is controlled here Check next to Volume Change from Close or Change from Close to view uncheck to hide Layout Vertical layout will align boxes one on top of the other Horizontal layout will align them side by side Sort Gainers Decliners by You may choose whether to sort your Top Ten windows by the securities Change from Close or Change from Close Filters o Inthe Single Top Ten window enter the underlying symbol for which you wish to see the top contracts in the Symbol field In Class Top Ten you may enter up to 5 symbols to exclude from your top ten window Select from the remaining options the type of information you wish you see in your Option Top Ten window Show Stocks Show Indices Show Calls Show Puts Show Option Name Show Zero Volume Also select whether to view items that are only In the money only Out of the money or both All money Finally select an expiration month or leave the default All months Click to adjust font settings Click to adjust color settings Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 321 StreetSmart Pro User Manual TABS ee eee Clicking Enable will add 2 tabs to the Options Top Ten Window Select to add a new tab to the window See the Adding Tabs to Windows topic for directions Edit tab Select to edit the current tab s settings including the name name and location Delete t
336. may experience problems e When installation is complete you will be prompted to restart your computer to complete the installation process After restarting you will see the StreetSmart Pro icon on your desktop e Click the icon to launch StreetSmart Pro on your computer SERVER CONNECTION STATUS Auto Reconnect The auto reconnect feature is part of all modules within the software When a window module is disconnected from its server the system immediately recognizes the fault and tries to reconnect If you find it necessary to manually reconnect click on Help gt Reconnect to Servers and wait a moment for the reconnection to transpire Connection Status Display Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 31 StreetSmart Pro User Manual In the Status Bar at the bottom of your software window two green lights indicate the flow of data to your computer from the servers The first one indicates the status of your connection to the Account Server and the second indicates status of the chart Level II and other data They will turn red if you lose your connection to either the data servers or the account servers 08 3030AM NUM Shows fully logged on and functional 0830 30AM NUM Shows logged off with no data coming in TIP To display the Status Bar click Toolbars gt Status Bar in the main menu Routing Connection Status You can also display the connection sta
337. may make some of the windows easier to read Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 27 StreetSmart Pro User Manual BUILT IN LAYOUTS StreetSmart Pro software comes with several built in layouts To maximize all available screen space and fit the size and resolution of your computer screen it may be necessary to select an alternative StreetSmart Pro built in layout The default layout the layout you see when you first log on is designed for a screen resolution of 1024x768 If your screen resolution is set lower than 1024x768 the windows in the layout may be too big to fit your screen To correct the problem go to File and select Default 800x600 from the list of layouts located at the bottom of the drop down menu There are other layouts which use different features of the StreetSmart Pro application All layouts are provided to give you ideas for customizing your own layout You can start from scratch or use one of the layouts provided as a starting point for your own custom design To access all of the available pre loaded layouts go to File gt Load Layout in the main menu You may also use the Layout Assistant tool in the Help menu It will show you the features of each layout and allow you to choose the best starting layout for your style of trading 28 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Configuration amp Troubl
338. me 5 The template set up window will appear and prompt you to complete the remaining fields 6 Click OK Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 257 StreetSmart Pro User Manual 7 Verify your conditional order and confirm that you have read the Alerts Warning if applicable and the Alert set will appear in the Alerts and Conditional Order Entry window TIP Remove Saved Templates e You can remove Templates by highlighting the Template you want to remove and either click Remove or right click to Remove e You can also edit an existing template to meet your changing needs ALERT VARIABLE DESCRIPTIONS Alert Variable Descriptions The following tables describe various alerts that you can create as well as how the alert will trigger e Trade P amp L Alerts e Share P amp L Alerts e Bid Alerts e Ask Alerts e Volume Alerts e Trade Price Alerts e Change From Open Alerts e Change From Close Alerts e Additional P amp L Alert Scenarios Trade Profit amp Loss Alerts Scenario e You bought 1000 shares of stock at 30 The current Bid is 31 and the current Ask is 32 e Based upon the Original Trade Price of 30 that you enter the software has calculated your current unrealized gain Trade P amp L as 1 000 1000 shares X 31 30 Level of Variable Value Is Trailing Conditions Complexity Points Stop that cause Shares Available the alert to or fire A
339. ments account If you have questions about which agreements apply to your account contact your Schwab Active Trader representative At A Glance Get an overview of basic balance information for your account s on Schwab com My Benefits See what services tools and products are available to you based on the type of account you hold with Schwab StreetSmart Access the StreetSmart Pro section of Schwab com where Pro you can learn more about the product download the latest version access online seminars and more 16 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started HELP Live Help The Live Help window allows you to communicate directly with a Schwab Active Trader Representative without having to pick up the phone Just open the Live Help window type your question and the representative will respond in real time Live Help 11 26 17 4M Welcome to Live Help Please use this tool to ask our client support staff any questions you may have Enter Message Orders are prohibited through the Live Help panel Clear All Close Sending Messages In the Main Menu click Help gt Live Help or click the A icon in the toolbar Type in the message under Enter Message Click Send To clear previous messages click Clear Click Exit to close down the box NOTE It is important that you do not use the Live Help window in the Schwab trading platforms to request autho
340. mp Co Inc 2006 All rights reserved 0106 5667 351 StreetSmart Pro User Manual Colors Allows you to choose the foreground and background text colors to suit your preferences BUILT IN QUERIES Included with your software are several pre designed queries that you may find useful They may not be edited or deleted but they can be used as a starting point for your own User Queries Click Settings gt Queries in the Stock Screener menu Click on the Built In query you wish to start with Click View Make any desired edits to the query Change the Query Name at the top of the window and click OK to save the query USER QUERIES New Query Click on this feature to create your own Stock Screener queries See Creating Screener Queries for instructions on creating queries of your own Edit Query Allows you to edit the current query or if you are viewing a Built In Query you can edit it and save under a new name with this feature See Creating Screener Queries for instructions on creating editing queries Loaded Queries This list shows all the User Queries in the current file Click on the one you wish to view To load a query file go to File gt Load Query File and select the file you wish to open 352 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener Saving Screener Queries There are two ways to save and view queries that you create Follow the steps under Cr
341. n The maximum amount you can withdraw from your account by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the maximum amount you can borrow against marginable securities held in your margin Use Abbreviated Field Labels Cancel Defaults e Click on an item in the Available Column to view a description of it then click Add to select the item for display in the Balances Bar e Change the order in which the fields are displayed in your Balances Bar by clicking on the field in the Selected Fields column and then click Move Up or Move Down e To minimize the screen space used by the labels click Use Abbreviated Field Labels TIP Change any of the fields on the fly by right clicking on the name of the field and selecting a different one from the drop down list 48 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Toolbars Today s Change 687 862 Avail to Withdraw Settled Cash to Trade Avail to Trade The maximum amount of money in your account that you can Cash use to trade without accessing margin borrowing ay Trade BP Total market value of new securities into which you may enter and subsequently exit without incurring a margin call Margin Equity The dollar value of marginable securities in your margin account less the amount you owe Schwab plus any cash in your margin account This is the liquidatio
342. n For example if Volume is in column two but you want High there right click on the Volume column heading and scroll until you find High NOTE If High is already a column in the list it will simply switch places with Volume If High is not in the list already Volume will be replaced Selecting Settings gt Reset Columns you will reset all columns of the currently viewed list for both Built In Queries as well as User Queries The first column will be reset to the Symbol Name The second column will be reset to match the Primary Filter of the query The remaining columns will change to a pre determined order up to the number of columns in the stock list Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 349 StreetSmart Pro User Manual Stock Screener List Menu FILE Load Query File e Click to load previously saved Query files e Once loaded the list of queries in your file will appear in the File menu as a Recently Viewed Query File see below Save Query File e Saves queries you have created As e You may save files either independently or as groups Once a query file has been saved you may save additional queries to the same file or under a different file name e See Saving Screener Queries for more information Page Setup Enables you to customize the current page for printing Read the Printing Windows topic in the Getting Started section for more information Print quer
343. n uptick black stock can be shorted on a downtick Change Shows the change in price from close TIP This can be changed to reflect the change from the opening price by checking Calculate Change from Open in the Settings gt General menu of the Trading window Change Shows the percent change from close o 0 TIP This can be changed to reflect the change from the opening price by checking Calculate Change from Open in the Settings gt General menu of the Trading window S volume Shows cumulative volume for the day Last Shows the last price at which the stock traded Red indicates the price was down from the previous sale and green means the price was up from the previous sale r open Shows the price at which the stock opened today Br Shows the highest price the stock has reached today Shows the number of participants posting at the inside bid price x the number of participants posting at the inside ask price This can be set to show instead the number of shares available at the inside bid and ask by checking Compute Ratio by Quantities in the Settings gt General menu of the Trading window L close Shows yesterdays close price Shows the lowest price the stock has reached today Aaea Spread shows the difference between the inside bid and ask prices Order Entry i Order There are several ways to change the order quantity Quantity e Press the Up Down arrow keys to increase or decreas
344. n an alert and select Activate Selected or Deactivate Selected depending on the status you want for that alert Activate All Makes all alerts in the Alerts tab active so that they will fire if their conditions are met Deactivate All Makes all alerts in the Alerts tab inactive so that none of them will fire regardless of whether the condition is met until they are made Active again Templates The Alert Templates feature allows you to create alert shells containing the variables that you use all the time Once established these can be quickly completed to fit a specific situation and activated from windows such as the Watch Lists Charts etc See Applying Alert Templates for detailed information ORDER STATUS only visible when Order Status tab is selected Cancels a live order from the Account Detail Only appears if an order is currently Live Allows you to change the order you highlighted Not all orders can be changed see Changing or Canceling Orders for more information Allows you to view full details of the order you have highlighted including partial fills Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 227 StreetSmart Pro User Manual POSITIONS only visible when Positions tab is selected Allows you to place an order to close the position you highlighted Click on a Position in the Account Detail and select Adjust Cost to change the dollar amount paid or received for
345. n value of your margin account but does not include option positions segregated money market funds or cash not held in the margin account Margin Equity represents the total amount you invested in securities plus any excess cash minus funds borrowed on margin Equity Pct Your margin equity divided by the market value of your margin account This amount reflects the percentage of the current margin account value you would receive if you liquidated the margined securities paid off any margin debt and withdrew the funds Options cash account positions and segregated money market funds are not included when calculating the equity percentage Today s The percent change in value of the account since today s Change market open whether due to security price movements securities transactions any other withdrawals and deposits or credits and debits The change in value in dollars of the account since today s market open whether due to security price movements securities transactions any other withdrawals and deposits or credits and debits Acct Net The liquidation value of your account excluding fees Worth commissions pending interest credits and debits etc which is the combined value of all your cash money market funds margin balances securities and any miscellaneous debits credits in your account The total dollar value of your unswept or intra day cash money market funds bank deposit accounts and net credit or
346. nce between the strike prices of the options used to create the position less the cost to establish the spread 30 20 5 5 or 500 In this example the strategy breaks even at 25 00 share The breakeven price of 25 is calculated by subtracting the net debit of the spread from the strike price of the long option Bear Debit Spread Gain Loss at Expiration o a G 5 J 2 A lt 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy
347. ncipal or agent buy from or sell to clients A trend following momentum indicator using 3 exponential moving averages a short or fast average a long or slow average and an exponential average of their difference the last used as a signal or trigger line You can change the periods used in the calculation from the defaults of 12 and 26 Used with Signal Line below A variation of the MACD that plots the difference between the Signal Line and MACD Changes in the spread between these two lines may be spotted faster potentially leading to earlier trading signals You can change the periods used in the calculation from the defaults of 12 26 and 9 Measures the amount the price of a security has changed over the last 14 days If the current trading session today hasn t closed yet it uses the last sale price You can change the periods used in the calculation from the default of 14 The formula for an n period Momentum is Momentum Price Price Money Flow keeps a running total of the money flowing into and out of a security The direction of the Money Flow line is the important component to watch not the actual dollar amount This indicator can be used to confirm underlying strength or weakness of a price trend The formula for an n period Money Flow is t B P TE MoneyFlow gt SS n n i t 4 l Vol 172 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts Money Flow Money
348. nd Down trends are defined by trend lines that are drawn between two or more peaks high points to identify price resistance within the trend New Trend Line Type e I Show levels I Show arcs Label 2 Color ul Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 181 StreetSmart Pro User Manual Regular A regular trend line will allow you to draw a line anywhere on the chart Snap To Using a Snap to trend line will place the trend line on the open high low or close of the trend being studied Fibonacci Studies There are four popular Fibonacci studies arcs fans retracements and time zones The interpretation of these studies involves anticipating changes in trends as prices near the lines created by the Fibonacci studies StreetSmart Pro includes fan arc and retracement studies Fibonacci Fan Lines are displayed by drawing a trend line between two extreme points for example a trough and opposing peak Then an invisible vertical line is drawn through the second extreme point Three trend lines are then drawn from the first extreme point so they pass through the invisible vertical line at the Fibonacci levels of 38 2 50 0 and 61 8 Fibonacci Lines are displayed by first drawing a trend line between Retracement two extreme points for example a trough and opposing peak A series of nine horizontal lines are drawn intersecting the trend line at the Fibonacci levels of 0
349. nd the current trading day Pivot Points are calculated Pivot YesterdaysHigh YesterdaysLow YesterdaysClose 3 0 S1 2 0 Pivot YesterdaysHigh Ri 2 0 Pivot YesterdaysLow S2 Pivot R1 S1 R2 Pivot R1 S1 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 175 StreetSmart Pro User Manual Price Relative Compares the performance of the symbol currently loaded in the chart to to Symbol the symbol specified in the studies settings window Price Relative Compare to SPX Color j Showin Study1 V Show label jz F with Value Rate of Change Change in price between the current price and the close 5 periods ago divided by the price 5 periods ago You can change the number of periods used in the calculation and you can overlay the study on or underneath the price chart The formula for an n period Rate of Change RateQfChange Price Price y is Price y 176 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts Relative Indicates the degree of positive and negative movement by the stock on a Strength Index scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 14 days using today s current price for the 15th day divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 1
350. ndow To read an article when the Preview panel is closed right click on the headline and choose either Open Story to display the news story in a pop up window or Show Preview Window to re open the Preview panel for viewing SETTINGS Keyword Filter Filters allow you to limit the volume and type of news that appears in your Breaking News tab by only displaying stories that have the key words or phrases you specify here To start click Settings gt Keyword Filter while viewing the Breaking News Tab check Enable Breaking News Filtering Select whether you want the keyword to appear in the headline story text or either Type the keyword or phrase and click Add to add it to the list To remove any of the words click on the word and click Remove Click OK when you are finished setting up your filters Breaking News Keyword Filter Enable Breeking News Fikening Only display Breaking News headines when the following words appear Inthe headine aulonoive emiconductor C Inthe stoy text In either the heading of tha tent Dooa Benovo Cox J e If you wish to be alerted when new news arrives in either of the three news tabs click on the tab with the stories for which you would like receive news alerts go to Settings gt News Alerts and choose whether to play a sound file Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 333 StreetSmart Pro User M
351. necting the two intervening troughs is broken the pattern is complete A bottom pattern is a mirror image of a top and is called an Inverse Head and Shoulders Immediate or Cancel IOC Requires the broker to immediately fill as much of the order as possible and then cancel any remaining portion It may not be available in all market conditions Unlike All or None AON or Fill or Kill FOK instructions IOC orders may result in a partial execution Immediate or Cancel can be entered with either market or limit orders Implied Volatility 376 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Implied volatility is a key variable in most option pricing models including the Black Scholes Option Pricing Model Other variables usually include security price strike price risk free rate of return and days to expiration If all other variables are equal the security with the highest volatility will generally have the highest option prices In the Money For a call option to be in the money an option s strike price must be below the market price of the underlying security For a put option in the money is when the strike price is above the market price of the underlying security Indicator An indicator is a value usually derived from a stock s price or volume that an investor can use to try to anticipate future price movements Indicators are divided into two groups trend following or l
352. nformation as shown in the following figure Trading 1 00000000 Microsoft Corp SE File Settings Stocks Options Adv Opt CHa Change 012 6 Volume 32 767 974 Last 25 65 Open 25 61 Hi 25 79 Ratio 125x2118 ffClose 25 53 Lo 25 5592 Spread 0 01 L 25 66 Hf SmanEx SpecCond Sell Buy Limit l DAY i Sell All Short Save Ist 25 65 2 500 geal st 25 66 1 800 2nd 2564 020 nd 25 67 200 3rd 25 63 100 3rd 25 68 1 000 25 65 25 65 25 65 25 65 25 65 25 65 25 66 25 66 25 66 25 66 25 66 25 66 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients NOTE Level II data is available to you for a fee if you wish to subscribe to the service However the fee may be waived if you meet certain eligibility requirements For additional information please contact your Schwab Active Trader Team e The left column shows the Market Maker Exchange and ECN best Bid quotes with the number of shares available at a particular bid e The middle column shows the Market Maker Exchange and ECN best Ask quotes with number of shares available at a particular ask e The right column Time and Sales shows the most recently reported trades th
353. ng Ask Ending ask of the regular trading session Ending Bid Ending Bid Ending bid of the regular trading session NYSE Ask NYSE Ask Price Current NYSE ask price NYSE Ask NYSE Ask Size Displays the highest number of shares Size available from a specific MM ECN within the inside NYSE Ask NYSE Bid NYSE Bid Price Current NYSE Bid price NYSE Bid Size NYSE Bid Size Displays the highest number of shares available from a specific MM ECN within the inside NYSE Bid Open Far Far Clearing The Open Crossing price at which orders in Price the opening book would clear against each other NASDAQ stocks only Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 5 StreetSmart Pro User Manual Open Open Imbalance The number of opening shares that would Imbalance Quantity remain unexecuted at the current reference price and the side of the imbalance buy sell or none if there is no imbalance NASDAQ stocks only Open Near Near Clearing The Open Crossing price at which orders in Price the opening book would clear against each other NASDAQ stocks only Open Paired Number of The number of opening shares that are able Paired Shares to be paired off at the current reference price NASDAQ stocks only Open Ref Current An Open price within the inside at which Reference Price paired shares are maximized the imbalance is minimized and the distance from the bid ask midpoint is minimized NASDAQ stocks o
354. ng window 2 Choose Settings gt General gt L1 Data tab 3 In the General window uncheck the Compute Ratio From Quantities box 4 Click OK How do I get the symbol I entered in the Trading window to reflect in the Charts and News windows StreetSmart Pro software can link Charts and News to the Trading window To use this feature 1 Click Settings gt Links This will open the links menu 2 Choose which windows you want to be linked to the Trading window you are using 3 Clicking on the name will highlight the selection as a new link to the Trading window 4 To remove a link clicking on the highlighted name will deactivate the link The Order Entry panel has disappeared from my Trading window What happened You can open and close the Order Entry panel of the Trading window by clicking the arrow under Last Trade Price Will clicking an action button automatically submit my order You willl receive an Order Verification to review before submitting your order if you have left the Order Verification setting checked located under Settings gt Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 399 StreetSmart Pro User Manual General gt Orders If you uncheck this box which is not recommended your orders will be submitted without any chance to review For SmartEx orders if you checked the Spec Cond checkbox a pop up window will open allowing you to designate additional ord
355. nge e To see the details and cash requirements of option positions you have entered go to the Account Detail window and click on the Positions tab See the Positions Tab topic to find out which types of option strategies are available at each approval level Note that approval for one level includes approval for all lower levels For instance if you have Level 3 approval you may also enter Long Covered and Protective positions e For more information about equity options and advanced option trading strategies visit Schwab com and click on My Benefits located in the At a Glance tab OPTIONS TAB COLUMNS The Options Tab allows you to view up to 19 types of information about each option in a chain Configuring Options Tab Columns 1 Click Settings gt Option Page Columns in the Trading window The following window opens 108 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Columns Selected Columns Size Rho Ask Impbed Vololiity Bid Impled Volatity Descriptiorc The estimated volatility of 2 stock underlying an option based on the option price Set Defaut Cancel 2 To add a column click on a column name in the Available Columns list and click Add to add it to the Selected Columns which are the columns that will display 3 To remove a column click on a name in the Selected Columns list and click Remove 4 To sort the Selected Columns list click on a name and use t
356. nge in value of the account since today s Change market open whether due to security price movements securities transactions any other withdrawals and deposits or credits and debits Today s The change in value in dollars of the account since today s Change market open whether due to security price movements securities transactions any other withdrawals and deposits or credits and debits Acct Net The liquidation value of your account excluding fees Worth commissions pending interest credits and debits etc which is the combined value of all your cash money market funds margin balances securities and any miscellaneous debits credits in your account 284 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Cash The total dollar value of your unswept or intra day cash money market funds bank deposit accounts and net credit or debit balances Margin BP The maximum value of marginable securities in which you can invest without depositing more equity in your margin account this includes funds you can borrow from Schwab but does not include balances in your Cash Account or Money Market Funds Avail to The maximum amount you can withdraw from your account Withdraw by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the maximum amount you can borrow against marginable securities he
357. nly CHARTS NEW STUDY PARABOLIC SAR The Parabolic SAR stop and reverse is a trend following indicator that may help establish stop loss parameters as well as signaling opportune times to buy or sell a stock Because it s a trend following indicator it tends to be less useful in a sideways market and more useful in a strongly trending market A line above the price may indicate a bearish trend and a line below the price may point to a bullish stock CHART TOOLBAR The Chart Toolbar allows quick access to the most commonly used chart features such as trend lines studies and other settings Hover your mouse over an icon in the toolbar to see what it will do Chart Toolbar TRADING WINDOW OPTION TRADING ENHANCEMENTS e Dividend Yield data is now automatically provided and updated in real time in the Hypothetical Pricing Parameters in the Trade Window and the Watch List from the right click menu when viewing an option e Market Value calculation for option positions now uses the current bid or ask instead of the last trade price for greater accuracy e Option symbols may now be entered with the leading period symbol or trailing o Ssymbol o e Sell Writes are now available for order entry via the Write Unwind tab of the Advanced Options screen in the Trading Window 6 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Option traders may now place Cash Secu
358. nly and view the results in the List window REFRESH PERIOD Will recalculate and display your query as often as every 15 seconds or Never if you want the query output to remain constant Keep in mind that the more frequently your computer asks for a refresh the more bandwidth your software will use SECONDARY FILTERS Secondary Filters enable you to further refine the query output In the left column is the list of Available Filters These will be used in conjunction with the fields at the bottom of the window to create the Selected Filters in the right column For instance if you created a filter based on Volume the Selected Filter will be called Volume and will include the filtering settings applied to it by you in the fields at the bottom of the window 1 2 3 Click on the desired Available Filter Click the gt gt to add the filter to the Selected Filters list on the right Under Select stocks whose choose whether to filter by just the variable the difference between the variable and another variable or the percent difference between the variable and another variable EXAMPLE 1 To set a filter that will only list stocks with a greater than 15 change from open choose Change from Open in the Available Filters list and click the gt gt button to move it to Selected Filters The rest of the query should read Select stocks whose Change from Open is greater than 15 EXAMPLE 2 To set a filter that
359. not active it will remain in the Alerts tab but will be dormant Alerts can be activated using the Activate Selected or Activate All menu items There is no limit on how many times an alert can be made active Activate Selected 1 Click on the alert that you wish to activate NOTE The alert must be in inactive status or this menu selection will be grayed out 2 Inthe Alerts menu select Activate Selected 3 When the alert is activated you will be presented with the order verification and Alert warning windows You will also receive confirmation of this action in the Messages window Activate All 1 In the Alerts menu select Activate All 2 When the alerts are activated you will be presented with a series of order verification and Alert warning windows Once you have clicked through these windows you will receive confirmation of these actions in the Messages window Activation at Market Open At market open a window will pop up asking you whether you want to activate your inactive alerts NOTE If you activate your alerts at this time all inactive alerts regardless of their prior history whether triggered by the software or deactivated manually will become active Deactivate All 1 In the Alerts menu select Deactivate All 2 All of the alerts previously in Active status will be changed to inactive status In this state they will be dormant until you choose to reactivate them You will also receive confirmation of this
360. ns in the Current toolbar in the order you prefer e Click Close when you are finished customizing your Chart Toolbar Moving the Chart Toolbar The Chart Toolbar can be displayed vertically on the left right hand side or the top or bottom of the frame or it can be removed to be a free floating window 1 Move your mouse pointer to the thin bar on the left side of the Chart Tool Bar 2 Click on that bar and then drag the window to the location of your choosing 3 Let go of the mouse button oolbar Features Not all buttons are displayed by default To add a button click Toolbars gt Customize gt Chart Tool Bar in the main menu Chart General Open the General Settings for the most recently Settings accessed Chart window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 161 StreetSmart Pro User Manual p Crosshairs Select to change your cursor to display a crosshair when you click on the chart The Crosshair pointer can help you pinpoint prices on a chart more easily than when using the regular cursor Select again to turn off Crosshairs B Chart Type Choose Monthly Weekly Daily Intraday or Tick a Chart Interval Choose from 5 to 120 minutes or select Other to open the Chart Settings window where you can enter a different interval Only applies to Intraday chart types Add Edit Click to open the Add Edit Studies window which Studies lets you add technical analysis studies
361. nsidered in the calculation a security can close lower and still exhibit signs of accumulation or close higher and still exhibit signs of distribution Moving Averages Moving averages are one of the more versatile and widely used of all technical indicators A moving average shows the average value of a security s price over a specified period of time To get the average to move a new item of price data is added while at the same time the oldest item is removed By using an average of prices moving averages are able to smooth a data series and make it easier to identify any underlying trend Essentially a trend following indicator the moving average works best in markets that are trending as opposed to markets in trading ranges They are used to identify and confirm trends as well as identify support and resistance areas It s also important to note that shorter term averages are typically more sensitive to individual price fluctuations while longer term averages are less sensitive Moving Averages include Simple Moving Average SMA The simple moving average is the most widely used moving average and is constructed by simply totaling a set of price data and dividing the sum by the number of observations SMAs give equal weight to each price data input Exponential Moving Average EMA The exponential moving average is similar to the SMA only it uses a smoothing factor to give more weight to recent prices while at the same
362. nt choices through multiple channels Use of technical analysis may result in increased frequency of trading and therefore significantly higher transaction costs than a fundamental approach CyberTrader an affiliate of Charles Schwab amp Co Inc provides technical services for StreetSmart Pro a Schwab product StreetSmart Pro is a registered trademark of Charles Schwab amp Co Inc Schwab StreetSmart Pro is a pending trademark of Charles Schwab amp Co Inc Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Access to Electronic Services and your account may be limited or unavailable during periods of peak demand market volatility systems upgrades or maintenance or for other reasons 2006 Charles Schwab amp Co Inc All rights reserved Member SIPC 0704 10579 394 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Identifiers MARKET MAKER ECN AND EXCHANGE IDS Refer to The NASDAQ Trader Symbol Directory which provides access to All Issues NASDAQ and Other Exchanges Mutual Funds and Market Participants A
363. nt does not meet an established minimum equity requirement maintenance call or because additional securities have been purchased or sold short Margin Interest Margin interest is charged daily based on your margin balance Marginable A security that may be used as collateral in a margin account Most listed securities trading at over 5 per share are marginable as are most fixed income securities OTC stocks and open ended mutual funds 30 days after they have been fully paid for To find out if a specific stock is marginable please contact a Schwab representative Market Capitalization Market Capitalization or market cap is the total market value of a company number of shares outstanding multiplied by the price of the stock For example a company with 1 million shares outstanding and a stock price of 10 would have a market capitalization of 10 million Market Indicators A variety of indices and other data that indicates the overall direction and strength of the market Market Maker Market makers are the dealers in the NASDAQ market They provide liquidity to the market by trading for their customers or for their own accounts and are committed to buy and sell shares in the stock in which they make a market Market makers display their buying and selling interest in the Level II quotes Market Order An order to buy or sell a security at the prevailing market price Sometimes referred to as at the market A market
364. nt price and the close 6 days ago divided by the price 6 days ago 10 Day RSI Relative Strength Index indicates the degree of positive and negative movement by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 9 days using today s Current Price for the 10th day divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 10 Day RSI from Relative Strength Index indicates the degree of Close positive and negative movement by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 10 days not including today if prior to close divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 30 Day RSI Relative Strength Index indicates the degree of positive and negative movement by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 29 days using today s Current Price for the 30th day divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 30 Day RSI from Relative Strength Index indicates the degree of Close positive and negative movement by the stock on a scale of 0 weakest to 100 strongest Determined by figuring
365. o Open Buy to Close 0 05 0 05 0 05 MSQ KI Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients The following table describes some of the features of the Options tab Symbol Field e Enter a stock symbol in the symbol field and press Enter The option chain will be loaded into the Option tab Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 107 StreetSmart Pro User Manual If you know an option symbol but don t know the symbol for the underlying stock you can you enter the option symbol preceded by a period or followed by o into the symbol field The underlying stock symbol will load into the symbol field whether you are on the Stocks or Options tab within the Trading window Calls Puts Click the check boxes to specify whether you want to view calls puts or both Expiration Click the down arrow next to the call put display buttons to Month select a month in which the options will expire Action Allow you to determine what type of trade you want to place Buttons TIPS e The red and green boxes you may see around the bid and ask prices indicate changing quotes and the color indicates the direction of the cha
366. o create the spread less the cost of establishing the spread If the security rises in value the maximum the investor can lose is the difference between the premium paid for the long put and the premium received from the short put For use when investor anticipates e Declining market security depreciation Financial Characteristics e Maximum Loss Net premium outlay Premium Received Premium Paid e Maximum Gain The difference between the strike prices less the cost of establishing the spread Objective e Speculative gain The maximum loss on a spread position remains limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the long put the maximum loss is no longer limited EXAMPLE Bear Vertical Put Spread Currently XYZ trades at 25 share The investor believes the stock will fall and wants to participate in the downward movement but does not want to simply buy 136 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading puts because of the expense risk involved Instead the investor employs a spread strategy buying an in the money put strike 30 for 6 00 contract and selling an out of the money put strike 20 for 1 00 contract Using this strategy the maximum loss is the difference between the premiums paid and the premium received 6 1 5 or 500 The maximum profit an investor can receive is the differe
367. o delete the current tab from the window name POSITION PRINT TICKER The Position Print Ticker automatically displays prints for any securities in which you hold a position The features are the same as the Print Ticker except you cannot add stocks you do not own To open click Tools gt Start Tools in the main menu and select Position Print Ticker The Position Print Ticker window can be scrolled vertically using the Page Up and Page Down buttons of the keyboard or by using the scroll bars at the right and bottom of the window 310 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools Position Print Ticker Symbol Added DELL iSymbol Added AMZN Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients General Visible Columns MV Trade Price IV Quantity Tm V Change from Open ent foo Cancel Put a check next to the columns you wish to display If you want to check Change from Open you should first uncheck Change from Previous Close and vice versa Data Filter Increment This feature allows you to filter prints based on the increment value change you specify here from 01 to 1 00 EXAMPLE If you only
368. o not carry over into the next Standard or Extended Hours Trading Session Any open orders will be automatically canceled at the end of the current Pre Market or After Hours session Unexecuted Direct Access orders will not carry over to the next day If a Direct Access order is not executed it will automatically be canceled at the time the ECN to which you routed your order closes Direct Access orders that are not auto canceled will be outed at the time the venue to which you routed your order closes Direct Access orders that are not auto canceled will be outed at the time the venue to which you routed your order closes Conditional Orders Conditional orders are triggered by Alerts with pre defined variables you choose and are only available during the Standard Market Session Alerts are not available for use during Extended Hours Risks of Extended Hours Trading Extended Hours Trading Sessions may not be suitable for all investors since they pose certain risks including but not limited to lower liquidity changing prices news announcements higher volatility and wider spreads For more information see the StreetSmart Pro Disclosures and Agreement Extended Hours Trading Sessions do not take place on official Exchange holidays or when the Exchanges close early Schwab reserves the right to change or modify the hours of operation at any time A Schwab Extended Hours Trading Session or any security traded therein may be tempora
369. o the Watch List window However the Watch List limit is 100 stocks If your Sub industry list is greater than 100 it will only pull over the first 100 securities in the Sub industry based upon the column that is being used for sorting If no column has been selected for sorting it will load in the first 100 securities in alphabetical order NOTE As of May 2 2006 certain changes have been made to the Health Care Sector and Real Estate Industry Group categories Read more about these changes at http www2 standardpoors com spf pdf index 112805_GICS pdf Click the plus symbol to expand the Sector Industry or Sub industry Click the minus to contract a category Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 327 StreetSmart Pro User Manual Sectors Sle File Settings E Consumer Discretionary E Consumer Staples E Beverages El Food amp Staples Retailing Food Products i Aaricultural Products ADM ALCO BG CPO CRESY DAR DLP FDP HORT MSK NUT E Packaged Foods amp Household Products El Personal Products E Tobacco Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Enables you to
370. ocks and then dividing by a number that takes into account splits large dividends substitutions and mergers The component stocks of the DJIA have changed over the years to reflect the composition of the U S economy Dual Listed Stocks Stocks listed on the New York Stock Exchange that are eligible for trading via SuperMontage a routing venue normally only available to NASDAQ stocks in addition to the NYSE and some ECNs AIBIC IDJE FIGIHITJJI JKILIMIN JO P Q IRISITIUIVI WI X Y Z Earnings Per Share Date Date of the last earnings announcement 374 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Electronic Communication Network ECN An Electronic Communication Network ECN is a computerized trading system that facilitates trading between two parties without a market maker or specialist as an intermediary If an ECN cannot match an order it usually either sends the order to another ECN or market maker or posts the order to the order book until a matching order is found ECNs are identified in the software as follows INET NASDAQ EDGA EdgeTrade BTRD Bloomberg BRUT NASDAQ ARCA NYSE Arca ONTD OnTrade Electronic Funds Transfer Transferring funds between accounts and firms electronically Elliot Wave Theory Originally published by Ralph Nelson Elliot in 1939 Elliot Wave Theory is a pattern recognition theory that is based on repetitive wave patterns and the Fibonacci numb
371. of a particular security The Money Flow indicator is derived from the daily read of the Accumulation Distribution Line The basic premise behind the Accumulation Distribution Line is that the degree of buying or selling pressure can be determined by the location of the close relative to the high and low for the corresponding period closing location value The closing location value multiplied by volume forms the Accumulation Distribution Value for each period Money Flow Percent is calculated by dividing the sum of the daily Accumulation Distribution values over a specified time period by the sum of the Volume over the corresponding period Generally accumulation or buying pressure is present when prices close in the upper half of the day s range and distribution or selling pressure is evident when prices close in the lower half of the day s range If prices consistently close in the upper half of their daily high low range on increased volume then the indicator will be positive and display above the zero line this indicates that the market may be strong Conversely if prices consistently close in the lower half of their daily high low range on increased volume the indicator will be negative and display below the zero line this indicates that the market may be weak 380 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference It should be noted that because the change from close to close is not co
372. of periods you specify This study only applies to Daily Weekly and Monthly charts Default of 20 periods can be changed Historical volatility is calculated t P 1 t In In z 2 2 n 1 Keltner Keltner Channels consist of two bands that are not equidistant from the Channels SMA Rather than two bands that are always an equal percentage away from the SMA Keltner Channels expand and contract based on a moving average of the True Range TR The formulas for the upper and lower bands are UpperBand SMA F SMATR LowerBand SMA F SMATR t DR SMATR j t x 1 where F is a factor 2 and TR max High Low High Close Close _ Low p Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 171 StreetSmart Pro User Manual Last Close Intraday Moving Average Conv Divergen ce MACD MACD Histogram Money Flow When selected with an intraday chart a line will display indicating the prior day s close price Zi Chart 2 Applied Materials SE 1min 3min 15min Daily Weekly AMAT Intraday 15 minute 1 day 9 3010 00 11 00 18 40 18 33 18 26 18 19 18 12 1 332 463 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as pri
373. of the security has had an up tick NOTE If no up tick occurs when using a Trailing Stop the Conditional order acts like a Stop order as there is no price increase to Trail back from To add a Trailing Stop to your Alert check the Trailing Stop box This box only becomes available when the criterion is either gains or loses EXAMPLE You are long 1000 XYZ which was purchased at 20 per share If you have a risk threshold of 10 you would want to get out of the position if the bid for XYZ decreases to 18 per share at the time you purchased it or 10 less than highest price reached after that Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 245 StreetSmart Pro User Manual You enter a Trailing Stop Alert at 20 to fire when the Bid loses 10 Assuming the stock price then increases to 25 per share the Trailing Stop will trigger if the Bid then decreases to 22 50 per share 25 x 10 2 50 per share 25 2 50 22 50 per share If the stock never moves above 20 per share and you set up the same type of Alert it will only fire if the Bid loses 10 18 20 x 10 2 per share 20 2 18 e You may also enter Trailing Stop orders from the Trading window by sending a SmartEx Trailing Stop order type This will display the conditional order in the Order Status tab until the trailing stop condition is met and the order is sent and becomes an Open order Alerts with Conditional Orders
374. of the software To disable this feature go to Settings gt General and uncheck Auto Save Layouts StreetSmart Pro Timeout Feature StreetSmart Pro software is designed to automatically log out after a specified period of time of inactivity e To change this setting from the default of 1 hour go to application main menu and click on Settings gt General e If your session is timed out or you lose connection simply Logon again 18 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Demo Mode Familiarize yourself with all the features in StreetSmart Pro without risking any capital by logging on in Demo mode To access choose Demo instead of Live when logging on Demo mode allows you to Get familiar with all aspects of the software indicators chart confirmation messages settings etc Practice entering orders quickly including changing share size price and execution venue Observe the Level II information the movement of Market Makers and ECNs Correlate price movements on a stock with market or sector movements Learn what momentum may look like in the Level II screen Observe the different types of stocks and different ways of trading based on spreads volume velocity and momentum Observe chart pattern formation NOTE You should not determine the success rate of a trading strategy based on demo mode or simulator performance Orders placed in D
375. om scratch in Alert Templates click Add to open the following Add Template window Add Template Template Name j Keep alert active afterlogoff 7 Save as Defaut Condition Symbol Option Vanable Criteria Value OO wW Zaw C and m a os o Action M Beep F Load Trading Window Play Sound File mi I Enter Order ar zl z zl z r Template lf lt symbol gt s lt vanable gt lt cntena gt lt value gt then lt action gt Conc 3 Alternatively select one of the Sample templates that is similar to your strategy and select Edit to rename it and modify its parameters 4 Set up the fields in the template the way you would an alert except for the fields you want to fill in at the time the order is placed such as the Symbol 5 Click OK when you re finished and it will save to the list of Alert Templates All new templates must be named or they cannot be used or saved To apply a template to a position 1 Right click on an open position in the Account Detail window or go to Alerts gt Templates and select Apply Alert to symbol 2 A sub menu will open and you will be able to choose from the templates listed there 3 The symbol will pre fill based on the position you selected and the template window will pop up with only the blank fields highlighted for you to fill in before the alert is set 256 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Accoun
376. om the original trade price than you might wish Bid Alerts Scenario You bought 1000 shares of stock at 30 The current Bid is 31 and the current Ask is 32 Level of Variable Value Is Trailing Conditions Complexity Points Stop that cause Shares Available the alert to or fire Basic Increases 33 Alert will fire to if the Bid rises to 33 or more Basic Decreases 29 Alert will fire to if the current Bid falls to 29 or less Gains 2 Yes Alert will fire if the Bid rises to 33 or more The alert reference point is based on the current Bid of 33 31 plus 2 points 2 Yes Alert will fire if the Bid falls to 29 or less The alert reference point is based on the current Bid of 31 minus 2 points Intermediate Intermediate Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 263 StreetSmart Pro User Manual Intermediate Bid Ask Alerts Scenario You bought 1000 shares of stock at 30 The current Bid i current Ask is 32 Ask Level of Complexity Intermediate 264 20 Yes Gains i yyy Value Points Shares or Is Trailing Stop Available Increases to Decreases 29 to Alert will fire if the Bid rises to 37 20 or more The alert reference point is based on the current Bid of 31 plus 6 20 20 of 31 Alert will fire if the Bid falls to 24 80 or less The alert reference point is based on the current Bid o
377. ome live actionable until the market opens You can set up new alerts or alerts created from templates at any time and they will display in the Alerts tab o Persistent alerts that are good for 60 days will automatically initialize at the next market open o Day Persistent alerts must be manually activated on the day of their use but you do not need to wait until market open to do this o Alerts that are good for the current logon session only do not initialize until the open of the standard session 9 30 a m ET o At the end of the standard market session all open Day alerts are deactivated o Persistent alerts that are good for 60 days will remain active but will not be acted upon until the next standard session o All alerts will remain in the Alerts tab pending further action such as editing activation deactivation or removal You can only use P amp L alerts for securities in which you hold a position Alerts with Conditional Orders for Boxed Positions can only be routed via SmartEx Alerts established with conditions that have already been met will instantly fire when the alert is set If you lose your connection to StreetSmart Pro servers any open alerts where Keep alert active after logoff is not checked will remain on the system for 10 minutes This allows you to log back in without losing the alerts You must reestablish your connection within 10 minutes to ensure that any outstanding alerts are not lost When you
378. on since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Combos The Combo tab allows you to manually input two legged spreads and other two legged options strategies not specifically supported in any of the other Advanced Options tabs Note that because Schwab currently only accepts two legged orders if you complete a stock leg Leg 1 you will not be able to complete Leg 3 and vice 138 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading versa Also the StreetSmart Pro Combination order is not the same as the Combo strategy on Schwab com Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies All strategies described herein require the use of a margin account Options carry a high level of risk and are not suitable for
379. onal as an exchange and in order to comply with exchange price time priority rules you may no longer preference individual Market Participants via SuperMontage All SuperMontage orders will route as a broadcast order ECN NAME CHANGES Due to ECN ownership changes NTRD is now displayed as ONTD in your venue selection menu and Level II ECN book display TRADING WINDOW SETTINGS In your Level I display you may now choose whether to display Change from Close Change from Open or Change from Previous Close Select your favorite from the Trading Window General Settings window under the Li Data tab In the L2 Data tab of the Trading Window General Settings you can check Remove Stale Quotes to filter out stuck Level II quotes during market hours Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 7 StreetSmart Pro User Manual e The new Sort Quotes by Size setting in the L2 Data tab if checked will sort all the posted quotes at each tier in Level II by Size and then Time so the largest quote would be at the top of the tier e If checked the new Color Watches at Inside Only feature of the L2 Data tab will highlight the watched Market Makers ECNs only when they are at the inside bid or ask Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Logging On amp Off Starting the Software and Logging On 1 Double click on the StreetSmart Pro i
380. onsand Advanced Options trading is available to approved clients F Charts 6 Opens a Chart window where you can see a graphical depiction of a symbol s price movements for the last minute up to the last few years If you use technical analysis in your trading you can also view a variety of Studies in the chart window and draw several different types of trend lines Strategy Tester Opens the Strategy Tester window where you can 1 search through historical performance results of back tested technical strategies Watch List 6 Opens the Watch List which allows you to create or view built in watch lists of stocks and select what data you wish to see for each list including options data news level I data price change volume daily high low and much more 1 symbols in which you have an open position amp News 3 The News window lets you query for news on a specific stock list of stocks or keyword Or you can have it alert you to breaking news across the market Top Ten 2 Opens the Top Ten window which you can customize to show NASDAQ and or NYSE stocks that are the 46 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Toolbars biggest gainers or decliners as well as the stocks with the highest volume There is also an Options Top Ten window available from the Tools gt Start Tool menu High Low 4 The High Low window shows you stocks and indices that are approa
381. or little progress in price Correction After an advance a decline that does not penetrate the low from which the advance began is known as a correction A correction also referred to as a retracement usually retraces 1 3 to 2 3 of the previous advance Crossed Market When the bid is higher than the lowest current offer or vice versa Crossover A crossover is a place on a graph where two lines intersect Depending on what each line represents a crossover may indicate a buy or sell signal One common method of interpreting a moving average is to compare its relationship to the price itself Changes in a market s price trend are not necessarily identified by a reversal in the direction of the moving average line but by the price line crossing through the moving average line It may be considered bearish when price crosses below a moving average and bullish when price crosses above it Multiple moving average crossovers or double crossovers can also be employed through the use of two moving average lines one of a shorter time span and the other of a longer time span It may be considered bearish when the shorter moving average crosses below the longer moving average and bullish when the shorter crosses above the longer This technique of using two moving averages together typically lags the market a bit more than a single moving average Cup and Handle 372 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 010
382. or reduce the likelihood of it being filled TIP For faster submission of Day Market and Day Limit Orders you can uncheck the Spec Cond box and submit those orders directly from the Trading window StreetSmart Pro has been designed to prevent you from sending variables that will not be accepted in the marketplace Execute SmartEx Order 00000000 AMZN Buy Reinvest Dividends Order Type z Time in Force Day Quantity 100 k Special Conditions AGN Limit Price 40 11 rH NE Stop Price F Min Gt 200 Save Order Cancel Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients SPECIAL CONDITIONS STATUS ACTION _ CHECKBOX FIELDS Account Number Displayed in the title bar Security and Action Displayed and cannot be edited Order Type Use this drop down menu to select your order type e Limit Market Stop Stop Limit Trailing Stop A SmartEx Trailing Stop Buy Sell Short order is a stop order whose stop price will trail either the inside ask if buying or inside bid if selling shorting at the time the order was submitted by the number of points or the percent you specified in the Trailing Amount field 92 Copyright Charles Schwab amp
383. or the debit spread only Max Gain for Debit Spread is unlimited only after the expiration of the short option Max Loss for Credit Spread is unlimited when the long calls expire prior to the short calls in which case the position would not qualify as a spread The gain or loss with time for calendar spreads applies only during the period when both options in the spread have not yet expired or been assigned Once the near term option has expired or been assigned the situation will reverse Gain will change to Loss and vice versa Although not common calendar spreads may be neutral Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Straight Calls Straight Calls refers to the purchasing or
384. or user cancels Times In Force Description C Can be entered after 7 00 AM ET and expire at the end of the extended trading day 8 00 p m ET Portions of the order not filled immediately upon reaching the market are canceled The information provided on this page is subject to change at any time To get the most current information please go to the BRUT web site 100 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading BTRD ECN General Information e Order goes directly to the BTRD order book If a better price is available in the book it will target that price e If there is not match order will post on Level II must not cross or lock the market e Sending a market order to BTRD in a fast market can result in a slower fill at a worse price than a limit order e BTRD accepts odd lot orders e BTRD does not accept order prices with fractions smaller than 01 e Day order available if Auto Cancel time set to 0 e Default cancellation time 180 seconds e Trading hours 7 30 a m to 5 30 p m ET BTRD Order Routing Order Types Description Limit Limit orders are supported for NASDAQ and listed securities Times In Force Description Day Can be entered after 7 30 AM ET and expire at the end of the extended trading day 5 30 p m ET Portions of the order not filled immediately upon reaching the market are canceled The information p
385. order guarantees execution but not price Market Peg Pegs the order price to the ask if buying or to the bid if selling meaning the order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price Orders may be adjusted a penny up or down to avoid locking the market EXAMPLE e XYZ is currently quoted at 20 bid x 20 05 ask e A Market Peg order to buy XYZ with a limit of 20 10 will be submitted at 20 05 e If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 10 e If the order is not executed it will not update beyond the limit price and will remain posted at 20 10 Max Floor Specifies the reserve size for the order Must be a round lot equal to or less than the order quantity Reserve size has no time priority in Level II Only the displayed portion of the order will have time priority Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 379 StreetSmart Pro User Manual EXAMPLE You enter a bid with 5 000 as the total quantity but 1 000 as the Max Floor value Your order will display as 1 000 shares but if yours is the only bid when an offer arrives for 10 000 shares at your price your entire 5 000 shares will execute However if 3 other bids for 3 000 shares each were behind you at the same price only your displayed 1 000 would execute along with 9 000 shares from the other three bids Minimum
386. ose Chg from 1 Month Difference between the average close for the last Avg Close month and the Current Price expressed as a point value Chg from 1 Difference between the average close for the last Month Avg Close month and the Current Price expressed as a percentage i e difference between 1 Month Avg Close and Current Price divided by 1 Month Avg Close Chg from 6 Month Difference between the average close for the last 6 356 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener Avg Close months and the Current Price expressed as a point value Chg from 6 Difference between the average close for the last 6 Month Avg Close months and the Current Price expressed as a percentage i e difference between 6 Month Avg Close and Current Price divided by 6 Month Avg Close Chg from YTD Avg Difference between the average close for the last year Close and the Current Price expressed as a point value Chg from YTD Difference between the average close for the last year Avg Close and the Current Price expressed as a percentage i e difference between YTD Avg Close and Current Price divided by YTD Avg Close Chg from Beg of Difference between the beginning of the month open Month Open price and the Current Price expressed as a point value Chg from Beg of Difference between the beginning of the year open Year Open price and the Current Price expressed as a point value Avg Volume 5 Day
387. oss trade price moves above the 50 period EMA and enters short exits long when the trade price falls below the 50 period EMA Mov Avg Geo 10 Strategy that enters long exits short when the 10 Geo 20 Cross period GMA moves above and enters short exits long when 10 period GMA falls below the 20 period GMA Mov Avg Geo 20 Strategy that enters long exits short when the Price Cross trade price moves above the 20 period GMA and enters short exits long when the trade price falls below the 20 period GMA Mov Avg Geo 200 Strategy that enters long exits short when the Price Cross trade price moves above the 200 period GMA and enters short exits long when the trade price falls below the 200 period GMA Mov Avg Geo 50 Strategy that enters long exits short when the 50 Geo 200 Cross period GMA moves above and enters short exits long when 50 period GMA falls below the 200 period GMA Mov Avg Geo 50 Strategy that enters long exits short when the Price Cross trade price moves above the 50 period GMA and enters short exits long when the trade price falls below the 50 period GMA Mov Avg Sim 10 Strategy that enters long exits short when the 10 Sim 20 Cross period SMA moves above and enters short exits long when 10 period SMA falls below the 20 period SMA Mov Avg Sim 20 Strategy that enters long exits short when the Price Cross trade price moves above the 20 period SMA and enters short exits lon
388. ot a recommendation to buy or sell the stock of a company S amp P common stock rankings should not be confused with debt quality ratings In S amp P 500 Indicates whether the stock is part of the Standard and Poor s 500 Index In S amp P Mid Cap 400 Indicates whether the stock is part of the Standard and Poor s Midcap 400 Index In S amp P Small Cap Indicates whether the stock is part of the Standard and 600 Poor s SmallCap 600 Index Shows the general industry classification of the company Healthcare Financial Technology Transportation etc GICS Industry A specific category describing the company s business activity Computer Peripherals Chemical Manufacturing Broadcasting Hotels amp Motels etc GICS Subindustry A subcategory within the company s Industry classification that further specifies the company s primary business activity Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 365 REFERENCE StreetSmart Pro User Manual Glossary This glossary contains definitions specifically related to listed options Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions With long options investors may lose 100 of funds invested Spread trading must be done in a margin account Please read the Options Disclosure Document titled Characterist
389. otes checkboxes If those checkboxes are grayed out please contact your Schwab Active Trader Team Access to Level II data requires meeting certain eligibility requirements based on trading frequency Please contact your Schwab Active Trader Team to determine if you qualify for Level II access 44 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 TOOLBARS 45 StreetSmart Pro User Manual Main Tool Bar The Main Tool Bar allows quick access to individual windows in the software Click anywhere in the main menu and then hover your mouse over a button to see a ToolTip indicating which window it will open To enable click Toolbars gt Main Tool Bar in the main menu The Main Tool Bar can be displayed vertically on the left right hand side or the top or bottom of the frame or it can be removed to be a free floating window To move the Main Tool Bar 1 Move your mouse pointer to the thin bar on the top of the Main Tool Bar 2 Click and drag the window to the location of your choosing 3 Let go of the mouse button Values in parentheses indicate the maximum number of windows that can be open at any one time Toolbar Icons Start Tool Opens the Start Tool window which allows you to add new or additional tools to your layout Trading Window Opens a Trading window which is where you can see Level I and II data and place all Stock Options Advanced Options trades Opti
390. own arrows to specify that value and check Ignore Stocks Below Click to adjust font settings Click to adjust color settings When checked allows you to maximize screen space while still having quick access to several windows within one window When unchecked you must open several independent windows to view multiple High Low window See the Adding Tabs to Windows topic for directions Select to add a new tab to the window See the Adding Tabs to Windows topic for directions Edit tab Select to edit the current tab s settings including the name and name location Delete tab Select to delete the current tab from the window name 326 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools Sectors SECTORS View information about companies grouped by sectors industries or by sub industries Classifications are based on Morgan Stanley Capital International and Standard amp Poor GICS Global Industry Classification Standard The Sectors tool can assist traders using a Top Down investing strategy by identifying the top performing Sector Industry or Sub Industry over any one of many time periods or in Bottom Up Analysis to compare an individual equity to its peers in its Sub industry Industry and Sector To open click 084 in the Toolbar TIP You can add the stocks in a Sub industry to the Watch List window by clicking on the Sub industry and dragging it t
391. p C and Ca z 5 Action W Beep F Load Trading Window Play Sound File fo 7 Enter Order S aronf af af af a r Alert Condtional Command j lt symbob gt s share P amp L loses lt value gt then beep orignal trade peice lt pnce gt Cancel Save Alert StreetSmart Pro can help you achieve risk management using Alerts with Conditional orders or by placing Stop or Stop Limit orders Below are examples of how risk can be managed once a position is established Place a Stop or Stop Limit order 244 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts You determine the exit point at which you want to limit your losses Select the position for which you wish to place a stop loss order in your Account Detail Positions tab and select Close option from the right click or drop down menu Select the Stop or Stop Limit Order Type and complete the screen Submitting this order will close the position once the price point has been reached NOTE Not all securities are eligible for Stop or Stop Limit Order Types Alert with a Conditional Order An alternative to submitting a Stop or Stop Limit order is setting up an Alert with a Conditional Order Using this type of Alert will also allow you not to show your order to the marketplace until your risk threshold has been reached It also allows you to set both a Profit exit and a Loss exit that wo
392. p L enter the total dollar amount you paid for the position Keep alert If checked and you log off the software the alert will be active saved to the server and still will be active the next time you after logoff log on Note that the alert may still fire if the alert is active even though you are logged off however if you have elected to confirm the order before sending these alerts may trigger but will not send a conditional order if you are logged off If checked but Day Alert is not checked this alert can stay active for up to 60 days Day Alert This box is available only when Keep alert active after logoff is checked A Day Persistent alert is good for the current day only but will remain active regardless of whether you are logged on or not When checked an Active Day Alert will automatically deactivate and cancel the order at the end of that day s standard session 4 00 p m ET Save as When checked this alert will save drop down menu positions Default and checkbox settings but will not save settings in the Value field or the order entry fields Conditions Sets up the conditions that will trigger your Alert or Alert with Panel Conditional order 248 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Variable Account Detail amp Alerts The variable determines which data will trigger your order Share P amp L Trade P amp L Change From Open and Change From Close are all chang
393. panel Show Equity Print Volume in 100 s If checked the full volume for a print will display If it is unchecked the print will display without the last two zeros to save screen space T amp S Trades Back Shows a certain number of trades backward when loading a new stock For instance if you want to see the last 20 prints for the stock each time you load a new one set this to 20 The maximum is 40 trades back To expand this view up to the last 1000 trades right click in the T amp S window and select Request Expanded T amp S DISPLAY EXCHANGE LABELS ON PRINTS If an exchange is checked each time a print comes through Time amp Sales from that exchange the ID for the exchange will display next to the print Prints from unchecked exchanges will display without an exchange tag COMMISSIONS DISPLAY SETTINGS Display Estimated Order Cost Including Commissions If checked the estimated order amount displayed in the Order Verification window will include the estimated commissions specified in the fields below SmartEx Order 00000000 You would like to Buy 100 shares of SWC 11 06 Limit DAY for account 00000000 The estimated order amount including commissions is 1115 95 Do Not Place Order 86 Equities Options Commissions Enter the estimated commissions to use in calculating the estimated order cost NOTE Only enter a commission value for the type of commission structure cu
394. pen Previous Close 0 5 Best Bid Best Ask 217 x N66 065 0 55 82 13452 0 10 0 55 Size High Low Volume Open Interest 0 60 0 65 Advanced Option Data 100 DELL 100 0 00 Amencan Equiy ABCIXP Mubpher Contract Sre Cash in Lieu Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients e Hypothetical Pricing Allows you to manually adjust variables involved in option pricing to see how changes affect the option values EXAMPLE 1 You are bullish on a stock but decide to purchase calls instead of the stock so you can get more leverage You anticipate the stock will go up about 2 points in the next week You use the hypothetical model to add 112 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading 2 points to the underlying price and take away 7 days from the days to expiration This gives you an indication that the call option you are considering might gain about 1 54 if the stock goes up 2 points over a the next 7 days EXAMPLE 2 You can also see how the greeks change as the variables change For example since a Delta will increase as an option gets farther in the money in the example above you would
395. penny up or down to avoid locking the market EXAMPLE XYZ is currently quoted at 20 bid x 20 05 ask A Market Peg order to buy XYZ with a limit of 20 10 will be submitted at 20 05 If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 10 If the order is not executed it will not update beyond the limit price and will remain posted at 20 10 Primary Peg Pegs the order price to the bid if buying or the ask if selling OTC securities or the best exchange bid ask for Listed securities The order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price EXAMPLE XYZ is currently quoting at 20 bid x 20 05 ask A Primary Peg order to buy XYZ with a limit of 20 05 will be submitted at 20 If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 05 If the order is not executed it will not update beyond the limit price and will remain posted at 98 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading 20 05 Times In Force Description Day Can be entered after 7 00 AM ET and expire at the end o the extended trading day 8 00 p m ET Portions of the order not filled immediately upon reaching the market are canceled Special Conditions Description Discretion Allows you to have a displayed price and a discretionary price You can place the order at the pri
396. position you can check the Sell All checkbox to sell the entire position including fractional shares Read the Sell All Checkbox topic for more information Action Once the order fields are set up to reflect the type of order Buttons price and share size click on the Buy Sell or Short button to route the order The Save button appears when any SmartEx order route is selected allowing you to save the order to the saved order window Level II Aggregate Aggregate quotes shows the number of shares being quoted at each price level You can view hide the aggregation by checking Display Aggregate Quotes in the Trading window menu Settings gt L2 Data gt Display Settings Increase or decrease the number of aggregate levels shown by clicking on the divider bar between the aggregate and regular Level II area and dragging it up or down Level II Level II Shows the depth of all bids and offers in a stock Each line shows the four letter Market Maker ECN ID or listed stock Exchange the price at which they are bidding or offering and the number of shares they are making available at that price NOTE Level II data is available to you for a fee if you wish to subscribe to the service However the fee may be waived if you meet certain eligibility requirements For additional information please contact your Schwab Active Trader Team Note that NASDAQ quotes and Level II ECN quotes are in upper case and ECN book quotes when th
397. pport is defined as an area on the price chart below the market where buying interest appears sufficiently strong to overcome selling pressure Resistance is the opposite of support and represents an area on the price chart above the market where selling pressure appears sufficiently strong to overcome buying pressure Generally support levels are suggested by previous lows while resistance levels are suggested by previous highs Support and resistance areas may be viewed as areas in price movements where buying and selling interest is equal The longer the time span that prices trade in these areas the more significant these areas may become Two other possible indications of significance include Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 385 StreetSmart Pro User Manual Heavy volume within a support or resistance area Recent trade activity within a support or resistance area Whenever a support or resistance level is penetrated by a significant amount the two can reverse roles and become the opposite In other words if price trades significantly through a prior resistance level this level can become a future support level If price trades significantly through a prior support level this level can become future a resistance level Reversal Pattern A reversal pattern implies that the previous trend will be reversed when the pattern is complete For example after an advance a reversal pa
398. price for today s close 15 Day EMA While similar to the SMA above the exponential Exponential moving average uses a Smoothing factor to give Moving Average more weight to recent prices while still allowing all data in the window to influence the average 20 Day EMA While similar to the SMA above the exponential moving average uses a Smoothing factor to give more weight to recent prices while still allowing all data in the window to influence the average 50 Day EMA While similar to the SMA above the exponential moving average uses a Smoothing factor to give more weight to recent prices while still allowing all data in the window to influence the average 60 Day EMA While similar to the SMA above the exponential moving average uses a Smoothing factor to give more weight to recent prices while still allowing all data in the window to influence the average 100 Day EMA While similar to the SMA above the exponential moving average uses a Smoothing factor to give more weight to recent prices while still allowing all 358 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener data in the window to influence the average 120 Day EMA While similar to the SMA above the exponential moving average uses a Smoothing factor to give more weight to recent prices while still allowing all data in the window to influence the average Rate of Chg Change in price between the curre
399. pulate with information from the primary account associated with your logon ID or Social Security number The Messages window is tied to the Account Detail window To reopen this window go to View gt Messages in the Account Detail menu or go to the software main menu and select Tools gt Find Active Tool and select Account Detail Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 47 StreetSmart Pro User Manual BALANCES BAR The Balances Bar keeps important account data at your fingertips You may customize the types of data shown based on the information that s most important to you To enable click Toolbar gt Balances Bar in the main menu To customize right click in the Balances Bar and select Customize Acct Net Worth By get Saal y s Chany Cash ESEIA Avail to Withdraw Eaa TIP Hide individual stats in your Balances Bar by clicking on the name Today s Change is hidden in the image below Select the statistics to display by clicking on Toolbars gt Customize gt Balances Bar in the main menu or by right clicking on the Balances Bar and selecting Customize The following settings window opens 8 Balances Bar Available Fields Selected Fields Avail to Trade Cash Acct Net Worth Move Up Day Trade BP Today s Change Margin Equity lt Remove Cash i Move Down Equity Pct Avail to Withdraw Today s Change Margin BP Settled Cash to Trade Descriptio
400. pyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener Screener List View Lists start with a group of default columns which you can adjust to view any of the variables available including any compound quantities such as High Current Price you created while building your query List 15 Day Sma 0 2 Above File View Settings Built In Queries User Queries Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Columns can be customized in three ways 1 Width Change the width of the columns by placing your cursor over the line between the column headers until the cursor changes to a double headed arrow Click and drag to compact or expand the column width 2 Number of Columns You can change the number of columns to view by clicking on Settings gt Columns in the menu bar right click within the window and choose Show Menu if it is hidden Use the up and down arrows to adjust the number of columns Click OK 3 Column Name You can change the order of the columns by right clicking on the column header A list will pop up with all the column choices Click on a different column name to replace the one currently in that positio
401. quote for a security that displays the current best Bid and Ask prices volume close price from the previous trading day open price high and low price for the Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 377 StreetSmart Pro User Manual day and perhaps the ratio of shares or market participants at the inside Bid and Ask Level II Level II is a display of both Level I quotes and bid and ask quotes from all quoting market participants market makers and ECNs at lower and higher prices than the best bid and ask Level III Consists of Level II Service plus the ability to enter quotations direct execute orders and send information this service is restricted to NASD member firms that function as registered Market Makers in either NASDAQ exchange listed or OTC Bulletin Board securities Limit Order An order to buy or sell a security at a specific price As opposed to a market order limit orders might not be filled quickly or at all if the market moves away from the specified price A limit order guarantees price but not execution Line Chart The line chart is a price chart that simply connects the closing prices for a given market over a specified period of time resulting in a curving line on the chart Liquidity The ability of a stock to be readily bought or sold without causing significant price fluctuations Generally the greater the number of buyers and sellers of a particular stock t
402. r Print Ticker with the exception of the Symbol List option in the menu You cannot add stocks you do not own to the Position Print Ticker The Print Ticker window can be scrolled vertically using the Page Up and Page Down buttons of the keyboard or by using the scroll bars at the right and bottom of the window Load Stock Selecting this feature will allow you to load a previously saved List Stock List into your Print Ticker Save Stock Selecting this feature will allow you to save your current stock List As list to a file on your computer which you can load later Clear Stock Unloads the current Stock List leaving you with a blank Print Ticker window This enables you to start a new Stock List from scratch by Adding Symbols see Symbol List below for more info on adding and deleting symbols Print Ticker will remember the last ten 10 stock list files you have opened To toggle between files click on any of them Closes the Print Ticker window FILE General Visible Columns WV Trade Price M Quantity F Chane V Change from Open Data Filter Increment 0 01 H Put a check next to the columns you wish to display If you want to check Change from Open you should first uncheck Change from Previous Close and vice versa Data Filter Increment This feature allows you to filter prints based on the increment value change you specify here from 01 to 1 00 EXAMPLE If you only want new prints to display every time the
403. r Canceled Click Browse to find wav files to use Windows comes with several wav files and you may also 226 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts download audio files from the internet or other sources This software does not come with any wav files Conditional Orders that are triggered and eventually filled will sound both the Live order entered and Order filled Sound Alerts if you have selected sounds for these actions as well as any sound alerts included as part of the action of the conditional order ALERTS Refer to the Alerts topic for more detailed information about Alerts Allows you to load saved Alert a r files Save All As Allows you to save the alerts in your Alert tab to a file Click to begin creating a new alert See Adding an Alert for detailed instructions Click on the alert you wish to edit and then click Edit The Edit Alert window will open allowing you to make changes Click OK when you are finished Remove Selected Click on the alert you wish to remove and click Remove Selected The alert will be removed from your Alerts tab Removing an alert will delete it from the system Remove All Removes all alerts in the Alerts tab and permanently deletes them Activate Deactivate Alerts that you want readily available but not Selected necessarily active live all the time can be set to Inactive when they are not in use Click o
404. r Filters Price Level Filter 1 f 100 H 10Ponts V Ignore Stocks Above 1 200 00 a 10 Points Five Day Avg Volume Filter Shares 100 1k 10k Ignore Stocks Below 1000 H Five Day Avg Dollar Yolume Filter Dollars 100 1k 10k Ignore Stocks Below 1000 zi NOTE Bold check boxes affect all Alert windows Cancel Defaults Price Level Filter The Price Level Filter allows you to set the price level below which and above which a stock will be ignored 1 Check the boxes to the left of the options to enable that filter 2 Clicking on the buttons provided to increase or decrease the prices within the Ignore Stocks Below and Ignore Stocks Above settings These can be adjusted in 1 and 10 intervals such that the minimum price below which a stock will be ignored based on yesterday s close is 1 and maximum price above which a stock will be ignored is 1000 The Default settings are 1 and 200 respectively 3 Click on OK after the filters have been set Five Day Avg Volume Filter To ignore symbols with a five day average volume below a certain value use the up and down arrows to specify that value and check Ignore Stocks Below Five Day Avg Dollar Volume Filter To ignore symbols with a five day average dollar volume below a certain value use the up and down arrows to specify that value Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 315 StreetSma
405. r time from the pull down menu Make the appropriate changes to Open High Low or Close Click OK Delete Selected 1 Select the item to remove by clicking on the label for Item any study or trend line or for support and resistance lines click on the line itself Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 151 StreetSmart Pro User Manual 2 Select Delete Selected Item to remove it from the chart You can also delete the selected line or label by pressing Delete on your keyboard or right clicking on the label or line and selecting Delete Delete All Deletes all of the available items for a group The groups are Studies Trend Lines Support Lines and Resistance Lines VIEW Time If checked lines marking the time frame the chart spans i e Lines hours days months etc are visible Price If checked lines marking various price levels are visible Lines If checked lines marking where the highest Volume Average Prices have occurred 2 Chart 1 Cisco Systems DAR File Edit view Insert Settings Tabs Tools 1min 15min Daily Weekly Monthly CSCO Monthly 83 months ARSI 14 AUG MAR OCT MAY DEC JUL FEB SEP __APR__NOV_ JUN HH ree T is cn Huvalauaitll Hula ulin 22 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may hav
406. railing Stop can have a Time in Force TIF of Day or GTC Good til Canceled e When placing a Trailing Stop order please note that you cannot change the order to another order type using the Change feature nor can you change Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 89 StreetSmart Pro User Manual another order type to a Trailing Stop order In both cases you would have to cancel the order and resubmit with a different order type For some NASDAQ equity orders you may not be able to change the order When this occurs you will notice that your order cannot be changed because in most cases it will fill immediately You can always request to cancel a limit order that has not completely filled Market orders can not be cancelled during Standard Market Session And you can designate which session you want your order placed in Trade Types PWETIE 9 Not Available Standard Session Routes 24 7 to Always available SmartEx Schwab for submission in current next Standard session Trades are executed from 9 30 a m to 4 00 p m ET Pre Market Only from 8 05 p m 9 15 a m to 8 05 p m to 9 15 a m ET ET Trading session open from 7 30 a m to 9 15 a m ET Only from 4 05 p m 8 00 p m to 4 05 p m to 8 00 p m ET ET Trading session open from 4 15 p m to 8 00 p m ET NOTES e Extended hours orders are limit orders good only for the current or next session
407. rally used as a measure of management effectiveness Return on Asset Net income including discontinued operations but before extraordinary items expressed as a of total assets for the most recent fiscal year Used in industry analysis and as a measure of asset use efficiency Yield Indicated annual dividend rate per common share divided by the latest stock price expressed in percentage terms Total Return Rate of return representing the price appreciation of a YTDO stock with cash dividends reinvested on the pay date from the beginning of the current fiscal year to the most recent full week of the fiscal year Total Return Rate of return representing the price appreciation of a YTD1 stock with cash dividends reinvested on the pay date for the period covering the most recent fiscal year Total Return Rate of return representing the price appreciation of a YTD2 stock with cash dividends reinvested on the pay date for the period covering the most recent 2 fiscal years Total Return Rate of return representing the price appreciation of a YTD3 stock with cash dividends reinvested on the pay date for the period covering the most recent 3 fiscal years Total Return Rate of return representing the price appreciation of a YTD4 stock with cash dividends reinvested on the pay date for the period covering the most recent 4 fiscal years Total Return Rate of return representing the price appreciation of a YTDS5 s
408. ransaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Vertical Call Spreads A strategy consisting of the purchase of a call option with one expiration date and strike price and the simultaneous sale of another call with the same expiration date but a different strike price Depending on whether the purchased call has a higher or lower strike than the sold call a vertical call spread can generally be profitable if the underlying stock or index rises a bull vertical call spread or falls a bear vertical call spread sufficiently Bull Vertical Call Spread A Bull Spread strategy may allow an investor to profit from upward movements in the underlying security The technique requires the investor to purchase at the money or in the money calls at a particular strike price and sell out of the money calls at a higher strike price with the same expiration date The cost of purchasing the call option will be partly offset by the premium received for the sale of the out of the money call This strategy is often termed a debit spread because of the net capital outlay that is required A Bull Spread delivers maximum profit when the stock trades at or above the higher strike price at expiration For use when investor anticipates e Rising market Security appreciation Financial Characteristics e Maximum Loss Net premium outlay Copyright
409. rders or instructions that you send will not be accepted and will not be processed by Schwab The Customize menu option provides you with access to customize the information displayed in the Balances Bar Chart Toolbar and Status Bar Click Customize and then select the toolbar you wish to customize or you can right click on the toolbar and select Customize For Balances Bar the following window will open 8 Balances Bar Available Fields Selected Fields Avail to Trade Cash Acct Net Worth Move Up Day Trade BP _Moveup Margin Equity lt Remo Move Do Magn Ea _ lt Bemove _Move Down Today s Change Margin BP Settled Cash to Trade Avail to Withdraw Description The change in value in dollars of the account since today s market open whether due to security price movements securities transactions any other withdrawals and deposits or credits and debits Use Abbreviated Field Labels OK Cancel Defaults For the Chart Toolbar the following window will open Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 11 StreetSmart Pro User Manual Customize Toolbar Available toolbar buttons Ny Resistance Rg Insert Tab Add gt E Show All Data N amp Edit Tick Data MV BTRD V ONTD MV SuperMontage Select All Clear All MV CapsLock MM NumLock OK Cancel Check the routing venues you wish to monitor in the Status Bar at the bottom of yo
410. real time information not always available in other parts of the application we recommend leaving your Messages Window open while logged on TIP Printing Data From the Messages Window A copy of your log files is maintained in the SSPro folder on your C drive for each day you log in to the software These files can printed in text format Please note that Schwab retains the official copy of these logs To print data directly from the Messages window before logging off go to File gt Print Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 229 StreetSmart Pro User Manual Order Status ORDER STATUS The Order Status tab in the Account Detail window displays all orders both open and closed placed via any Schwab channel including Schwab com TeleBroker and Velocity The Order Status tab displays Open orders closed orders that have been filled or canceled orders You can sort on any column in the Order Status window by clicking on the column header you want as your sort key Contingent Orders This applies to SmartEx trailing stop orders that are held up until the trailing stop price is met Once the price is met the order status changes to Open and a market order is submitted for execution Account Detail 00000000 Fle Yew Settings Alerts Order Status Order Statue Saved Orders Status Symbol E Contingent DELL Eqty Buy 1000 Trailing Stop 5 00 Stock s
411. reate alerts for indices using other variables such as Bid or Ask these alerts will never fire because the variables do not exist for indices Avoid placing alerts on any stock that does not have bid ask quotes Such alerts will not fire Positions with Fractional Shares If an alert to sell a position will leave only a fractional share in the account less than one full share the alert will fire but the order will be rejected and not executed If you are placing a sell alert for a position that has fractional shares and desire to sell the full position please use the close feature located under the Action drop down and select All under the Quantity drop down in the Order Entry area of the Alert template Critical Alert Information Logging off exiting the system or being timed out from your session will deactivate any alerts that do not have Keep alert active after logoff checked Saved alert files and Templates are still inactive but can be easily loaded when you logon again You may choose to confirm orders before sending You must be logged on to your software for a triggered alert to send an order if confirmation is required Confirm order before sending If you do not have this setting checked your active alert will trigger an order without your confirmation whether you are logged in or not If you have alerts set without Keep alert active after logoff checked and you lose your Internet connection due to
412. rectors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients There are several ways you can customize the window to monitor for what best fits your trading strategy e You select whether to monitor some or all of NASDAQ NYSE AMEX and or Index symbols e You can define your own or select from the 30 pre built strategies that you wish to monitor e You can choose what bar sizes you want considered e You can filter out securities and indexes above or below a certain price as well as securities and indexes whose five day average volume is below a certain amount 214 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools e Finally you can select from up to 15 columns of data to display in your Strategy Ticker window TIP Strategy Notes To view the Notes description of the strategy signal generated right click on a row and select Strategy Notes Strategy Notes Strategy that enters long exits short when the trade price moves above the 50 period EMA and enters short exits long when the trade price falls below the 50 period EMA STRATEGY TICKER MENU BAR FILE Load Stock List Selecting this feature will allow you to load a previously saved Stock List into your Strategy Ticker Save Stock List Selecting this feature will allow you to save your current As stock list to a file on your computer which you c
413. red Equity Puts CSEPs in both cash and margin accounts Cash will be withheld from buying power in the amount of 100 of the assignment value of the short put position if it cannot be paired with either a short position in the underlying stock or an existing long put position Options trading in pennies currently scheduled to begin in January 2007 will be supported For more information on the roll out of option trading in penny increments visit http www sia com options_markets html penny_pilotprogram html Dividend Reinvesting is now available in the Buy Write order entry tab of the Advanced Options screen of the Trading Window You may now view price indications from several exchanges in the Advanced Option Order window Sell Call Buy Wri CBOE w Net Size Sell 7 50 C 7 54Dr 4 Sell 10 00 C 10 04Dr 5 Sell 12 50 C 12 54Dr 5 Sell 15 00 C 15 04Dr 5 Sell 17 50 C 17 54Dr 6 Sell ann F NNN R NASDAQ SINGLE BOOK NASDAQ has integrated SuperMontage INET and BRUT branded market data facilities into a Single Book While the integration does not impact the existing order routing venues and order types the migration results in Level II data display changes within StreetSmart Pro The software consolidates SIZE BRUT and INET quotes into one INET quote at each tier Visit the NASDAQTrader com for more information on the NASDAQ Systems Integration SUPERMONTAGE PREFERENCING As part of NASDAQ efforts to become operati
414. referred by Charles Schwab UK including but not limited to o Access to schwab com o Velocity Trading software o Schwab Platinum service and Schwab Platinum representatives o Direct Access trading via StreetSmart Pro o E Mail Alerts and Trade Confirmations Your use of each version of StreetSmart Pro is governed by your agreements with Schwab including 412 The End User License Agreement and StreetSmart Pro Disclosure and Agreement that you must agree to as part of the software download process Your account agreements including the Electronic Services Agreement Any disclosures associated with the market data and trade order routing and functionality incorporated in or related to the use of the software Any laws or regulations in force in your country of residence pertaining to the download and use of encrypted software Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667
415. rent TIF if available for the order route you have chosen You can check the Spec Cond box to set any additional order qualifiers such as pegging or Max Floor This will require one more window to be reviewed prior to the Order Verification window To sell your entire position check the Sell All box The quantity will default to the shares you have available to sell When checked the quantity will become shaded See the Sell All topic for more information Once the Order Entry fields are set up to reflect the attributes you want choose your action Sell or Buy Use the SmartEx venue if you wish to place a Short order If Order Verification is enabled in the Trading window Settings gt General window you will be asked to verify the details of your order before it is sent Click Place Order to submit the order or Do Not Place Order to cancel your action ARCA ECN General Information The order will try to find a match in the ARCA NYSE Arca Book If a better price is available in the book then it will target that price If no match is made the order will post to the ARCA Book The best bid and ask posting 100 or more shares will post on Level II if it does not cross or lock the market A market order is available by selecting Market in the drop down menu once ARCA is chosen as the order route The default is a limit order Minimum decimal increment in order price 001 Day order available if Auto Cancel time is set to 0
416. rent page for printing Read the Printing Windows topic in the Getting Started section for more information Print Prints the information in your Watch List window Export Saves the current stock list to a text txt file in your SSPro folder which can then be opened in Excel or other third party software 0 1 2 3 Watch List will remember the last 10 files that have been opened To toggle between files click on any of them Close Closes the Watch List window Columns e Click Settings gt Columns to change the data fields displayed in the Watch List columns e Move Columns you want to see in the Watch List over to the Selected Columns e Column data can also be changed by right clicking the Watch List column heading e You can change the order of the column data by dragging the column heading box to the desired column location Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 295 StreetSmart Pro User Manual L Columns Available Columns Selected Columns Change from Previous Symbol Bid News Headline Index Last Trade Price Open Price Yesterday s Close Change from Close Change from Close Change from Open Spread Description Sorting Sector Industry Sub industry Enable Sorting T Long Names C Abbreviations Set Default Cancel Enable Sorting When checked you can simply click on any column header to sort by th
417. ress Enter to load AMZN into the Trading window You can insert any combination of letters or use single letters If you choose to use the aliases this will take precedence over New York stocks For example if W has been assigned as the alias for WXYZ when W is typed into the Trading window WXYZ will load instead of the stock whose actual symbol is W Setting Up an Alias 1 Click in the Use Aliases box to activate 2 Type in a Symbol and Alias 3 Press the Add key or Enter to add it to the list 4 To delete one alias click on it in the list and click Remove 5 To delete ALL aliases click on Remove All NOTE Hot Keys can only be set for one Trading window and will be the same for any other Trading windows open You cannot set different Hot Keys for each Trading window Symbol Aliases IV Use Aliases Symbol Alias mm Add EE Remove All 80 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Links Links allow you to automatically load stocks into other windows when they are loaded into the Trading window Note that only the linkable windows open in your layout will be displayed in the Links list 1 Click on an item to link to the Trading window e News If linked to the Trading window any stock loaded here will also load the most recent news on the stock in the News window e Strategy Matrix tool e Charts When a stock is entered into the Trading window
418. right Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started close the exchanges disseminate information about order imbalances in the closing book along with an indicative closing price At 4 00 p m Eastern Time ET the closing book and the continuous book are brought together to create a single Closing Cross The new columns include Column Short Column Name Description Name Name assigned in Watch List Column Close Far Far Clearing The Close Crossing price at which orders in Price the closing book would clear against each other NASDAQ stocks only Close Close Imbalance The number of closing shares that would Imbalance Quantity remain unexecuted at the current reference price and the side of the imbalance buy sell or none if there is no imbalance Applies to both NASDAQ and NYSE stocks Close Near Near Clearing The Close Crossing price at which orders in Price the closing book and continuous book would clear against each other NASDAQ stocks only Close Paired Number of The number of closing shares that are able Paired Shares to be paired off at the current reference price Applies to both NASDAQ and NYSE stocks Close Ref Current A Close price within the NASDAQ inside at Reference Price which paired shares are maximized the imbalance is minimized and the distance from the bid ask midpoint is minimized Applies to both NASDAQ and NYSE stocks Ending Ask __ Endi
419. rily or permanently suspended without prior notice at any time at our discretion Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 143 StreetSmart Pro User Manual RISKS OF EXTENDED HOURS TRADING Extended Hours Trading Sessions may not be suitable for all investors since they pose certain risks including but not limited to lower liquidity changing prices news announcements higher volatility and wider spreads For more information see the StreetSmart Pro Agreement and Disclosure Extended Hours Trading Sessions do not take place on official Exchange holidays or when the Exchanges close early Schwab reserves the right to change or modify the hours of operation at any time A Schwab Extended Hours Trading Session or any security traded therein may be temporarily or permanently suspended without prior notice at any time at our discretion Extended Hours Trading via Direct Access Standard Market Extended Hours Trading at Schwab Hours Individual investor Pre Market Trading Please refer to the table orders may be executed from 9 30 a m to 4 00 p m ET Orders can be placed at any time Trading occurs on NASDAQ and the exchanges through a Individual investor orders may be executed from 8 00 a m to 9 15 a m ET Orders can be placed as early as 8 05 p m the previous trading day but order execution will not begin until 8 00 a m Orders cannot be placed until after 8 0
420. rize or effect the purchase or sale of any security or commodity to send fund transfer instructions or to effect any other transactions Any such requests orders or instructions that you send will not be accepted and will not be processed Reconnect If the Status Bar indicates you have been disconnected from the to Servers server one of the two indicator lights would be red and automatic reconnection was not successful click Reconnect to Servers If the problem persists log off and try logging on again Contact your Schwab Active Trader team if you are still unable to connect Online Help Click to open the online help files The Layout Assistant helps you identify the right layout for your Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 17 StreetSmart Pro User Manual Assistant style of trading Click through the tabs at the top of the window and move your mouse around the screen to see a description of each window highlighted on the right Once you have found a layout you wish to use you can continue to customize the layout once you have selected it click Select This Layout New Click to read about the new features of the version you are Features using Click for copyright and version information for your software TIPS Auto Save Layouts All layouts have been set to auto save so that any modifications you make to a layout will be automatically saved when you log out
421. rlying security A put is out of the money when the strike price is below the market price of the underlying security Outed A term used by traders to confirm that an order was canceled by the Market Maker or Exchange Over the Counter OTC Over the Counter refers to stocks not traded on registered exchanges Many OTC stocks are traded through NASDAQ OTCBB Bulletin Board or the Pink Sheets Overbought Overbought is a technical condition described as such by various technical indicators that occurs when prices are considered too high and may be susceptible to a decline Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the Stochastic Oscillator and Relative Strength Index RSI A security is sometimes considered overbought when the Stochastic Oscillator exceeds 80 and when the Relative Strength Index RSI exceeds 70 It is important to keep in mind that overbought is not necessarily the same as being bearish It merely infers that the stock may have risen too far too fast and might be due for a pullback Oversold Oversold is a technical condition described as such by various indicators when prices are considered too low and may be ripe for a rally Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the Stochastic Oscillator and Relative Strength Index RSI A security is sometimes considered oversold when the Stochastic dips below 20 and w
422. rom broad to specific helps define a company s business focus Also helps identify competitors Spread Difference between the Bid and the Ask Strike Option Strike Price Sub industry GICS Global Industry Classification Standard Sub Industry classification From broad to specific helps define a company s business focus Also helps identify competitors Tick Change in option price in relation to the time left before the option expires Arrow indicating direction of last tick Vega Change in option price in relation to a 1 change in volatility Volume Volume for the day These columns display market data for Opening and Closing Cross orders NASDAQ and NYSE accept and store on close order types that are executable only at market close Leading up to the close the exchanges disseminate information about order imbalances in the closing book along with an indicated closing price At 4 00 p m Eastern Time ET the closing book and the continuous book are brought together to create a single Closing Cross NOTES e Uptick arrow is green downtick arrow is red e The last trade is green when it is above the Ask and red when it s below the Bid e The Tick indicator is determined by the Chg Prev field e While you can create an unlimited number of Watch Lists each with separate symbols fields and columns you are limited to six open Watch List 302 Copyright Charles Schwab amp
423. rovided on this page is subject to change at any time To get the most current information please go to the BTRD web site INET ECN General Information e NASDAQ Single Book NASDAQ has integrated SuperMontage INET and BRUT branded market data facilities into a Single Book While the integration does not impact the existing order routing venues and order types the migration results in Level II data display changes within StreetSmart Pro The software consolidates SIZE BRUT and INET quotes into one INET quote at each tier Visit the NASDAQTrader com for more information on the NASDAQ Systems Integration Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 101 StreetSmart Pro User Manual e INET does NOT accept Good Till Canceled orders and any open orders will be canceled when trading hours end at 8 00 p m ET e Day order available if Auto Cancel time is set to 0 e Default cancellation time 180 seconds e Trading Hours 7 00 a m to 8 00 p m ET INET Order Routing Order Types Description Limit Matched against existing orders on the NASDAQ Single Book Limit Invisible These orders are never displayed on the book or in Level II and therefore cannot lock or cross the market XYZ is currently quoted at 20 bid x 20 05 ask A Market Peg order to buy XYZ with a limit of 20 10 will be submitted at 20 05 If the quote changes to 20 05 bid x 20 10 ask the order price would change
424. rrently assigned to your account Do not enter a value in both the per trade and per share fields Leave one of the fields blank Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading SmartEx Trading HOW SMARTEX ORDERS ROUTE SmartEx is a trade execution technology that combines the best of intelligent order routing IOR with market maker liquidity enhancements SmartEx is designed to deliver trade executions that are as good as if not better than what you would expect to receive using IOR alone Currently SmartEx technology is used for executing NASDAQ National Market securities Orders for listed securities continue to be executed according to the individual execution methods of receiving specialists SmartEx is an electronic execution technology designed to hunt and seek the best available price for your retail sized marketable orders SmartEx automatically seeks the liquidity from the best price displayed in the market whether it is from an ECN or a market maker and provides an execution based on the liquidity available If there is insufficient size at the best price in the marketplace SmartEx will automatically continue to route the remainder of your order at each subsequent price until your entire order has been filled or your limit order price if any has been reached In addition your order may receive enhanced liquidity in excess of the current liquidity displayed in the market
425. rt Pro User Manual and check Ignore Stocks Below Fonts Click to adjust font settings Colors Click to adjust color settings 316 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Market Data Tools Top Ten TOP TEN Quickly identify highly active securities based on volume or price changes using the Top Ten window To open click 18 in the Toolbar Traders can react to active securities by quickly consulting the Top Ten window View Top Volume Top Gainers and or Top Decliners for NASDAQ and or NYSE Data Also available for the options markets Top Volume Gainers and Decliners shows the Top 10 stocks in terms of volume and largest advance and decline by either points or percentage Up to two Top Ten windows may be opened at a time and up to 2 tabs can be added to each window Top Ten Nasdaq File Settings Tabs NASDAQ NYSE Top Volume 01 01 15 PM Top Gainers 01 01 15 PM Top Decliners 01 01 15 PM Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients e The Top Ten can display the symbol total volume change from close points up or down from yesterday s close in each window e You have the option of displayin
426. s and create spreads long straddles and long combinations Level 3 Allows you to buy and sell covered and uncovered calls and puts and create spreads and straddles If you are currently approved for options trading and decide that you would like to apply to upgrade your option trading level please complete a new Option Trading Application Schwab will evaluate your application and send a confirmation of the option trading strategy approved for your account NOTE Schwab Keogh and Custodian Accounts are only eligible for Level 0 option trading and cannot be upgraded to a higher level of option trading Can I trade Cash Secured Equity Puts CSEPs on StreetSmart Pro You can if your account meets certain requirements e If you have a Level 1 2 or 3 option approved margin account or a Level 1 option approved IRA or cash account AND 400 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference e If you have sufficient cash in your account to cover the position Cash types that can be used to secure the put e Schwab Value Advantage Funds e Cash Deposits e Schwab Bank Deposits e Schwab Money Market Funds Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Ca
427. s Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Format amp Options Margins amp Header Footer Orientation C Portrait Landscape Scale 1100 7 l Shrink To Fit Page Width Print in l Grayscale Print Background colors amp images rc 1 Select a Portrait or Landscape orientation For wider windows like charts Watch Lists etc landscape may be the better choice to fit all the content on one page width TIP If the window contents still do not fit on the page you may choose to Scale the printing to a lower percentage or click Shrink To Fit Page Width for the printer to automatically scale the page to fit TIP You can also go to Settings gt Fonts for the window you are printing and enlarge or reduce the font size to change how the window prints 2 Next set up the qualities of your print job only applicable choices will be available e Gridlines For windows where information is presented in a table format check this box to keep the lines visible in the printout e Greyscale Check to print in shades of grey black white Note that for some printers you will have to change this setting in your printer properties for it to take effect In the File gt Print window select Properties and find the setting for Greyscale and select it The location of this setting will vary depending on the printer you use e Print Background colors amp images If checked the printo
428. s Schwab amp Co Inc 2006 All rights reserved 0106 5667 23 StreetSmart Pro User Manual Select Layout Look in B Backup e maa E 10092006Two Charts lyt E 10102006Two Charts lyt E 10112006Moving Avgs VAP lyt E 10112006Two Charts lyt E 10162006Moving Avgs VAP lyt E 10172006Moving Avgs VAP lyt 10182006Moving Avas VAP lyt File name 10182006Moving Avgs VAP Files oftype layoutsC z Cancel Open the layout you want to restore and you will be prompted to save it to your regular Layouts folder SHRINK OR ENLARGE WINDOWS Each window in the software can be resized to allow for additional windows or to accommodate the size of your monitor To Resize the Width Height of a Window 1 Place the mouse pointer on a side of the window until an up down or left right arrow appears 2 Left click and hold the mouse button while resizing the window then release the mouse button To Resize the Entire Window 1 Place the mouse pointer on the corner of the window until the diagonal arrow appears 2 Left click and hold the mouse button while resizing the window then release the mouse button MOVE WINDOWS StreetSmart Pro windows can be arranged any way you like within the frame of the software To Move Windows 1 Click and hold your mouse pointer on the top bar of the window and drag to the new location 2 Let go of the button when the window is where you want it or
429. s a whole 7 Strategy Performance Details Strategy Te SE Performance Summary Executions Trades Equity History Settings Parameter SLB Mov Avg Sim 20 Price Cross Tuesday 11 29 2005 09 34 Central S 10 mins 100 11 23 2005 13 50 11 29 2005 10 20 233 00 40 00 273 166 08 verage Winning Hold Time Total Winning Hold Time Average Winning Profit Maximum Profit Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Executions A list of each execution sorted chronologically including information about the type of trade and which strategy triggered the trade Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 207 StreetSmart Pro User Manual DEK h f Strategy Performance Details Strategy Tester Performance Summary Executions Trades Equity History Settings 9 11 23 2005 15 10 11 25 2005 11 50 11 25 2005 11 50 B 11 25 2005 12 00 11 25 2005 12 00 11 25 2005 12 20 Mus ep Date tine _L type i Ties Sie eed Ore Short Indicator Exit uy Indicator Exit Short Indicator Exit 11 25 2005 12 20 Bu 11 25 2005 14 50 11 25 2005 14 50 11 29 2005 09 40 I Indicator Exit Short In
430. s below upper band MACD 12 26 SL 12 Strategy that enters long exits short when the 26 9 Cross 12 26 period MACD moves above the 9 period Signal Line and enters short exits long when the 12 26 period MACD falls below the 9 period Signal Line Money Flow 20 Strategy that enters long exits short when the 20 Level 0 Cross Period Money Flow moves above and enters short exits long when the 20 Period Money Flow falls below the zero 0 line Mov Avg Exp 10 Strategy that enters long exits short when the 10 Exp 20 Cross period EMA moves above and enters short exits long when 10 period EMA falls below the 20 period EMA Mov Avg Exp 20 Strategy that enters long exits short when the Price Cross trade price moves above the 20 period EMA and enters short exits long when the trade price falls below the 20 period EMA Mov Avg Exp 200 Strategy that enters long exits short when the Price Cross trade price moves above the 200 period EMA and enters short exits long when the trade price falls below the 200 period EMA Mov Avg Exp 50 Strategy that enters long exits short when the 50 Exp 200 Cross period EMA moves above and enters short exits 198 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools long when 50 period EMA falls below the 200 period EMA Mov Avg Exp 50 Strategy that enters long exits short when the Price Cr
431. s for that information to be transmitted Can I build up transaction history over a period of time in Streetsmart Pro No Unlike transaction data found on other Schwab channels data is not stored on your Streetsmart Pro desktop If you want to retain transaction data spanning periods greater that the last 30 days you must export this data for use with an external application such as MS Excel Alternatively if you need to look further back than the 90 day maximum limit of the StreetSmart Pro software the quickest way is to go to schwab com or contact your Schwab Active Trader Broker STOCK SCREENER FAQ How can I save my personal Queries Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 403 StreetSmart Pro User Manual Streetsmart Pro software will automatically save any personal queries that you create To return to a query that you have created go to User Queries and you will see your queries listed in the drop down This query will automatically be saved when you logoff but not to a file As a result File gt Clear the Query File will cause the personal query to be lost if not saved to a file To save a Query to a file see Creating and Saving Queries The queries that I am creating are not producing the results that I am expecting What am I doing wrong In addition to knowing what the filter variables mean you must also understand how to use them properly to get the output you desir
432. s of the call and the put are below the current price of the underlying security Beta Beta is a measure of the security s systematic or market risk The level of the beta indicates the degree of correlation between a security and a market benchmark usually the S amp P 500 The market is the benchmark and has a beta of 1 A beta greater than 1 is more volatile than the overall market while a beta less than 1 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 369 StreetSmart Pro User Manual indicates that the security s price is more stable than the market in general and over a long time period Bid The bid price is the displayed price at which a market maker or specialist offers to buy a stock Black Scholes Option Pricing Model A model used to forecast the price of an option Blue Chip A common stock of an established company that has a long record of earnings dividends stability and high credit quality Bollinger Bands Developed by John Bollinger Bollinger Bands are indicators that allow for a comparison of volatility and relative price levels over a period time This indicator consists of three bands designed to encompass the majority of a security s price action 1 An upper band 2 A lower band 3 A moving average The time period used for the moving average can vary but John Bollinger recommends 10 days for short term trading 20 days for intermediate trading and 50 days for long
433. s of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Collars A collar allows an investor to help hedge a long short underlying security position by buying selling a put with a strike price beneath the current stock price and selling buying a call with a strike above it Both options have the same expiration date The user accepts a cap on his upside downside gains for a floor on his downside upside losses For use when investor anticipates e Volatile market conditions e Any missed opportunities are perceived to be worth the risk mitigation Financial Characteristics e Maximum Loss vs Long Stock Current Stock Price Strike Price of Put Net Premiums e Maximum Loss vs Short Stock Strike Price of Call
434. s used along with the Bar Size to determine for Test how far back to test and how frequently the price is updated over that period EXAMPLE If Bar Size 5 Min and Number of Bars to Test 100 the test will cover the last 500 minutes and base the test on the last trade price at the end of each 5 minute interval Initial Equity Choose from 10 000 50 000 or 100 000 as the play money being used in the test When the first trade is placed in the test it will start with the initial equity amount Then as trading continues your equity will increase or decrease depending on the success of the trades Best Your selection here will determine the initial sort Performance order of the list upon running the test Determination APR Annual Percentage Rate This value is reached by multiplying a year 365 days by the Performance and then dividing by the number of days in the simulation Simple interest used Sharpe Ratio Risk adjusted profitability for the test time period IRX will be used for the Risk Free Rate 202 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools of Return in the Sharpe formula Total Profit Total Profit or Loss includes open positions Quantity per Select how many shares or contracts to trade each Trade time a trade is triggered Equities Choose from 100 Shares 1000 Shares 10 of Available Equity or 5 000 Commission per Enter
435. se Trade Price for ABC must decrease to 34 36 minus 2 or less Account Detail amp Alerts Advanced Change Gains 20 Yes Alert will fire from if the Change Close from Close increases to 1 20 current Change from Close of 1 plus 20 of 1 or more In this case Trade Price for ABC must be 36 20 36 plus 0 20 or more Loses 20 Yes Alert will fire if the Change from Close decreases to 0 80 current Change from Open of 1 minus 20 of 1 or less In this case Trade Price for ABC must be 35 80 36 minus 0 20 or less Advanced Additional P amp L Alert Scenarios Scenario 1 You bought 1000 shares of XYZ at 20 Bid is 21 Your current unrealized profit Trade P amp L is 1000 Depending on your objective you could set up the alert in different ways If your objective is e A bigger profit of 2000 then enter Trade P amp L Increases to 2000 Original Trade Price 20 and beep Trigger If XYZ trades at or above 22 00 then the application will beep e To protect a profit of 500 then enter if Trade P amp L Decreases to 500 Original Trade Price 20 and beep Trigger If XYZ trades at or below 20 50 then the application will beep Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 271 StreetSmart Pro User Manual e To limit your loss to 500 then enter if Trade P amp L Decreases to 500 Original Trade Price 2
436. se the Up Down arrow keys on your keyboard to increase or decrease the price by 05 Left Right arrow keys on your keyboard to increase or decrease the price by 01 Shift Up Down arrow keys on your keyboard to increase or decrease the price by 005 You may also click on a price in Level II to load it into the price field Double click an ECN to route directly to that ECN at their posted price SmartEx e Enter the limit price you want e Routes 24 7 to Schwab for submission in current next Standard session Pre Market e Can be sent to Schwab from 8 05 p m to 9 15 a m EST for trading session beginning at 7 30 a m ET Cannot be sent to Schwab from 9 15 a m to 8 05 p m EST and menu selection will be grayed out After Hours e Can be sent from 4 05 p m to 8 00 p m ET for trading 66 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading session beginning at 4 15 p m ET e Cannot be sent from 8 00 p m to 4 05 p m ET and menu selection will be grayed out Direct Access Double click on the participant in Level II that you wish to send your order to and it will fill in this field with either the ECN or if a Market Maker SuperMontage Or click the arrow to see a drop down list of all routing choices available to you If you have a stock loaded that is on a listed exchange you will see the Listed Order routing options See the individual Order Route topics for inform
437. select Note that when using the gains or loses criteria the system is using the current P amp L amount or percent as a basis If you are 10 profit already and you input gains 5 the alert will trigger when your profit reaches 10 5 because a 5 gain on 10 is 5 You can also set up alerts and conditional order commands for using different symbols for the condition and the conditional order Useful combinations include an index coupled with an individual stock or an order for an option using its underlying equity for the condition Change from Open and Change from Close alerts can be more complex when using the Gains and Loses criteria See Change From Open Alerts and Change From Close Alerts topics for more specific examples Persistent Alerts StreetSmart Pro Alerts support server held alerts and conditional orders to better customize your platform to your risk management needs There are three ways to manage the time frame of an alert Alert Name is Keep alert active after logoff I Save as Default Persistent GTC Good Til Cancel Alerts This type of alert remains active unless triggered for 60 days regardless of your logon status To make your alert persistent GTC check Keep alert active after logoff when setting up the alert This alert can be set up at any time but will be active only during the standard session Persistent Day Alerts Regardless of your logon status these alerts will remain act
438. selling the option If the security declines in value the maximum the investor can lose is the strike price less the credit received for selling the put For use when investor anticipates e Increasing market security appreciation Financial Characteristics e Maximum Loss Strike Price less credit received from sale of option e Maximum Gain Credit received by selling the put option e Break Even Strike Price of the option less the credit received for the sold option 122 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Objective e Speculative gain EXAMPLE Short Straight Put Currently XYZ trades at 25 share The investor believes the stock will rise and wants to benefit from the upward movement The investor shorts a Straight Put option strike 30 for 6 00 share 1 contract 100 The maximum loss is the difference between the strike of the option and the premium received through the sale of the put 30 6 24 If the stock closes at 19 on expiration there would be a 5 loss 30 19 6 5 loss The maximum profit an investor can receive is the credit received when selling the option For example if the same XYZ 30 strike put option sold for 6 and the stock closed over 30 the option would expire worthless and the investor could pocket the entire 6 The break even point for the strategy occurs when the price of XYZ is at 24 Short Puts Gain Loss at Expiration g k
439. served 0106 5667 Market Data Tools number of times the stock has broken a new high or low on the day Even when the stock is highlighted meaning it is at a 52 week high the Daily Hi Low Count still only represents the number of daily high or low breaks e Signal 52 week approach Will indicate when a stock is close to its 52 week high e Signal daily approach Will indicate when a stock is approaching its daily high e Upper Threshold The window will display a stock in yellow unless otherwise changed any stock that is 0 063 away from the daily or 52 week high You can choose to change this amount e Lower Threshold The window will display in purple unless otherwise changed any stock that is 0 063 away from the daily or 52 week low You can choose to change this amount e Data Filter Increment This feature allows you to filter prints based on the increment value change you specify here from 01 to 1 00 EXAMPLE If you only want new prints to display every time the trade price changes by 10 set this to 10 using the arrow buttons Then when any of the stocks in your symbol list prints a trade 10 higher or lower than the last trade it printed the symbol quantity etc will display in the Print Ticker window The color will correspond to whether it s a negative or a positive change NOTE The Data Filter Increment will not apply to proximity alerts in the High Low window such as Signal 52 week approach and Upper
440. settings for Direct Access can be changed by going to the Trading window menu and clicking Settings gt General See the Trading Window Menu topic for more details about these important settings Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 105 StreetSmart Pro User Manual General Orders ju Data L2 Data Time amp Sales Commissions Execution Settings Quaniily Ordes Verification O Save Curent Quantity Always View Warnings Set Quantity to Open Position C Default INET Orders to 10C Set Quantity to Defaut Default MM Dbi Cik to SuperMontage Defaut Share Size 1000 Pop up Execution Panel Outside Lvl II Default Contract Size f Auto Cancel Timeouts Super ontage fo Price Increment 10 01 ECN NOTE Bold check boxes affect all Trading Windows in al layouts AUTO CANCEL TIMEOUTS Note that changes to these settings are isolated to the computer on which you make them If you access your software from another computer you will need to change your timeout settings there as well SuperMontage This will automatically send a cancel after the number of seconds you put into the text box for SuperMontage orders only The default setting is 0 seconds which means it will remain live until canceled or executed The number of seconds that direct ECN orders are live before the system auto cancels them A value of 0 disables auto cancel The default is 180 seconds 106 Copyright Charl
441. share and buying one out of Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 135 StreetSmart Pro User Manual the money put Strike 20 00 for 1 00 share Using this strategy the investor receives a cash credit of the difference between the premiums received and the premiums paid 6 1 5 or 500 and this is the maximum profit the investor can earn If the stock rises to 30 00 share the long and short put positions expire worthless and the investor keeps the net premium received The maximum loss is the difference between the option strikes less the call premium received 30 20 5 5 or 500 see above The breakeven price of 25 is calculated by subtracting the net credit of the spread from the strike price of the short option Vertical Credit Spread Gain Loss at Expiration _ i k z G a wn z l lt 16 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Bear Vertical Put Spreads The Bear Put Spread may allow an investor to profit from downward movements in the underlying security It uses exactly the opposite structure of the Bull Vertical Put Spread and requires the investor to buy a high strike put and sell a low strike put with a lower premium The sale of the less expensive out of the money put will partly offset the cost of purchasing the in the money put The maximum the investor can profit is the difference between the strike prices used t
442. st Rate Standard Rate IRX 3 month rate v C User Defined Rate 5E H e Stack Options When checked Calls will be stacked above Puts in the Options tab Scroll down to view Puts Otherwise Puts will be listed to the right of the Calls Scroll to the right to view Puts OPTIONS LEVEL II TAB Options Level II tab displays the prices and size that each exchange is posting as well as alerting you to exchanges where the contract may be available for automatic execution Options Level II provides you with a greater depth of information regarding the option contract being viewed You will need to turn on the Level II Options tab by clicking Settings gt General gt L2 Data and checking the Show L2 Option Data selection f Trading 1 00000000 Amazon com Inc N E BR File Settings Stocks Options 2 Opt gmg Opt gyzn 48 3 AMZN reS 0 55 E Volume 1466 1 466 Las ope 25 o oes mO o 255 95 Sprea 50 00 biw 5 Sell to Close d Buy to Open s Sell to Open Buy to Close ZON Mi ISE CBOE AMEX PCX PHL BOX 68 298 20 114 246 120 E JU 6 2 05 2850 2007 2 05 BOO 27 2 05 366 2 05 756 2 05 1 497 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or s
443. sting Tools Strategy Tester STRATEGY TESTER Find out how you would have done in the market if you had used a particular technical strategy The Strategy Tester is our backtesting tool that combines technical analysis strategies with historical market data to help you make future trading decisions You can load results from the Strategy Tester into the Chart tool and the Strategy Ticker tool to help you find buy or sell opportunities in real time To open the Strategy Tester click Bin the Toolbar The Strategy Tester provides the ability to search through historical performance results of back tested technical strategies It can help you identify the following e Best performing Securities for a given Technical Strategy and Bar Size e Best performing combination of multiple Securities Technical Strategies and Bar Sizes e Best 50 performing Technical Strategies for a Security and Bar Size F Strategy Tester File view Settings Help 0 7 5 5 5 5 3 1 5 9 3 5 3 8 MaU NANGNNGON G j Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Testing a Strategy To test a strategy against one or more symbols 1 Click Settings gt Strategy Center to open th
444. stocks Based on a ranking system of one to five stars S amp P Star Rankings are available for about 1 000 select stocks A definition of the rankings are as follows e 5 BUY Expected to be among the best performers over the next 12 months and rise in price 4 ACCUMULATE Expected to be an above average performer 3 HOLD Expected to be an average performer 2 AVOID Likely to be a below average performer 1 SELL Expected to be a well below average performer and fall in price S amp P Earning amp Measures the historical growth and stability of a Dividend Ranking company s earnings and dividends for the past 10 years The Ranking System has various grades A Highest A High A Above Average B Average B Below Average 364 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener e B Lower e C Lowest e D In Reorganization and e NR No Ranking NOTE An NR designation no ranking is given to common stocks with insufficient historical data or because the stock is not amenable to the ranking process As a matter of policy Standard amp Poor s does not rank the stock of foreign companies investment companies and certain finance oriented companies So as not to be biased by future expectations the rankings are based on past events only The S amp P Ranking System does not use earnings and dividend estimates An S amp P ranking is n
445. strategy from the Selected list click on it and then click the Remove button Check the period length bar size columns that you wish to view in the Strategy Matrix window Colors e Change color settings with this option Fonts Change font settings with this option 222 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 ACCOUNT DETAIL amp ALERTS StreetSmart Pro User Manual Account Detail Overview The Account Detail window puts all your account specific information in one convenient location This window gives you six tabs with streaming real time data e Order Status e Saved Orders e Alerts e Balances e Positions e Transactions 6 Account Detail 00000000 File View Settings Alerts Positions Order Saved Orders Alerts Balances Positions Transactions APPLE COMPUTER INC 91 39 0 07 54 834 0 a CISCO SYSTEMS INC 26 70 0 01 2 670 0 CISCO SYSTEMS INC 26 70 0 01 13 350 0CJ INTL BUSINESS MACHINES 1 91 00 0 25 273 000 01 gt Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients The Account Detail window automatically opens when you log on to the software and closes when you log off If you are no
446. t from the up tick rule Please see Up Tick rule for more information MESSAGES WINDOW Messages By clicking View gt Messages in the Account Detail menu you can view streaming order status in the Messages window for the current day only If you log off and back on multiple times during the day all messages for the previous session s will display in gray The Messages Window provides useful information about your software settings order status information alert messages and market session information If you make any changes to your software settings these changes will also be noted in the Messages Window The streaming data displayed includes e New Order Accepted e Orders Filled e Nothing Done Out e Alerts amp Conditional Order Events e Change Order e Cancel Accepted Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 147 StreetSmart Pro User Manual E Messages 16 26 50 116 26 50 16 26 42 16 24 37 16 24 37 IEOR ae Equity Market is now Closed 15 59 00 Equity Market Closing in 1 Minute 15 55 00 Eguity Market Closing in 5 Minutes ero 00000000 Alert Server is running As the Messages Window provides you with real time information not always available in other parts of the application we recommend leaving your Messages Window open while logged on TIP Printing Data From the Messages Window A copy of your log files is maintained in the SSPro folder on your C
447. t Detail amp Alerts NOTE Unless you wish to set up templates for specific positions the symbol and the value fields are left blank until you set the specific alert If your alert template includes a conditional order the shares and price fields can also be left blank and entered when you set the alert In this example Value is the variable in the template to be filled in when you re ready to set the Alert Complete Template O el Symbol Action Quantity Piice Venue m oso ET e e a F Contim ceder before sending Template lf SWC s bid decreases bo lt value gt then lt execute gt lt shares gt of SWE at lt price gt on lt verue gt and load trading window and beep This conditional ordes will be active dunng the current logon session only Cancel Save Alert To set up the template as a persistent alert Check Keep alert active after logoff at the top of the template window then fill in the rest of the blue fields and click OK to activate the alert To Apply an Alert Template to an Alert or Conditional Order For a Security You Do Not Own 1 Set up your template the same way you would a regular alert leaving the Symbol and Value fields blank 2 In the Account Detail click Alerts gt Templates in the menu bar If the Menu Bar is not visible right click in the window and select Show Menu 3 Click on the template for the alert you set up Click Complete or double click the Alert Template na
448. t Detail window allows you to execute the same functions as right clicking on a position in the Positions tab of the Account Detail window With a the stand alone Open Positions window visible in your layout you never have to tab back and forth between Order Status and Positions to see your Positions The Open Positions window can be set to graphically display data To change the display from Text to Graphical 1 Open the Open Positions window by going to Account Detail and selecting View gt Positions When the pop up window opens select Settings gt General 3 When the following pop up box opens select Graphical 286 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts General Display E Graphical F Auto Sorting Graph Settings P amp L Data Unit Increment Unit Width Point Gain 444 20 C Point Gain P amp L OK Cancel o The Open Positions window will display the gain or loss of your positions in a horizontal bar chart Auto Sorting If Auto Sorting is checked any changes to information in the Positions window will be sorted into the existing information according to the current sort order For example if you have your Positions Tab sorted by P amp L as the price changes for symbols in your window the list will automatically adjust its sort order to accommodate those changes Each position in your account is displa
449. t Total number of bars out of the market Total Total profit from all profitable trades Total loss from all losing trades Open Position The dollar value for any position still open at the end of the test Highest Cash Highest amount cash in account Balance Lowest Cash Lowest amount cash in account Balance Highest The most your open positions were worth simultaneously Position Value during the test Highest Open The largest equity dip relative to the initial investment Drawdown based on open position Highest Closed The largest equity dip relative to the initial investment Drawdown based on closed out position Highest Equity Highest amount of cash position s value Balance Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 211 StreetSmart Pro User Manual Lowest Equity Lowest amount of cash position s value Balance EXECUTIONS Shows when this order happened consecutively If this number is 4 this order was the fourth order to happen in the test Indicates on what bar the activity occurred based on the first date of the date range used when the simulation was run EXAMPLE If this number is 6 the corresponding activity happened on the sixth bar of the tested data Date and Time Tells you the date and time when the activity occurred Type Lists the type of order executed Types include Buy Short Indicator Exit Profit Exit an
450. t easy to analyze price and volume movements in real time Add Studies Trend Lines and even technical analysis Strategies to charts to enhance your ability to spot trends and buy sell opportunities To open click in the Toolbar StreetSmart Pro software has advanced charting tools that give you the freedom to customize your charting experience to your precise specifications Features available include more than 25 customizable studies or indicators trend lines and studies including SMA EMA Bollinger Bands and Envelopes chart types including point and figure bar line and candlestick and much more You may display up to 6 chart windows in a single layout with up to 20 tabs each with unique chart settings in each window effectively allowing you to display up to 120 charts in one layout Each tab can be setup to copy the setting from another tab or be unique to the tab itself vou f Chart 1 Cisco Systems File Edit view Insert Settings Tabs Tools 1min 15min Daily Weekly Monthly CSCO Monthly 83 months ARS 14 AUG MAR OCT MAY DEC JUL FEB SEP APR NOV JUN fh P Pan p E A aiai Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients 150 Copyright Char
451. t interested in viewing this information this window can be minimized to increase available screen real estate If you minimized this window and want to quickly open it 1 Click on Tools in the Main menu 2 Select Find Active Tool gt Account Detail 224 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Account Detail Menu Right click in the Account Detail window and select Show Menu Bar to access the following options Page Setup Enables you to customize the current page for printing Read the Printing Windows topic in the Getting Started section for more information Prints the current page of the Account Detail To save the data on a particular page into a text txt file for use in Excel or other programs click on the tab whose data you wish to export and select Export from the File menu When selected a new window will pop up that is populated with your account positions This window is similar to the My Positions watch List but with only four columns Symbol Price Quantity and Change e The Symbol column displays the security symbols of the positions in your account The Price column displays the last trade or closing price of the security The Quantity column displays the quantity of shares held of each position The Change column displays the net change of the security from either yesterday s closing price or today s opening price The default
452. t neran aaien aa LAEE oa PANE E ATENa NAAA AEA iada 230 Saved Orders i an nAn aani Aa KENAPA EAA TAAT KNE AAAA AEEA EEANN ATANI LE TETERA 234 StreetSmart Pro User Manual AIGRtS si oeit in Mian Ave ia T E E E Meade E E A lan daca eee 236 BalanGeS ists ation sev teriivy tedious ode tenis hvu stares bees Re Peat ah eatin ceecaeeer s 277 POSIELIONSwiscaviuansesidvadeiviss Wits ceteisiviuleninsi dos devas sive ndlene sway EE A aaar aR 286 MAR SACEONS Ea Soak escent Rh cs eee AEAEE vibe tas EEEREN 291 Market Data TOlS siiip iraniana aeaieo iaai iiaii aaa Ghiaia 293 Watch LiSts E A A 294 TiGKErS iye ares vie a E a oral ried ox Siar dale sieeve Uae de Cele A EE EENE 308 TOP Te Metenceitencnta cent Scie raha Sand wack a cna ee lees art ee eee wees wear oleae hele a 317 Options TOP Teva isestectees rae Nan E AE PERA IEAI ERA TAA EE EIIE PONTA 320 FIQHS SC LOWS eanne EENAA AAE AAAA ERNEA NAA ETARA ANE ATA TALE AENA E AAT 323 SE CEOMS A E TAE IE AE A ATT E EE EEE TETE TT 327 NEWS oiiaee aaae aaan a aaa aa aaa aaa aa a aaa aaa a aa a aa aa aaae aaa aaa EA 331 News OVerViEW aisa EAA ATAT et bs eae EA ae AOAN 332 BreakingNews Tab vciwiisectcenegeceaatetuaeermeseennged ta ted teed emg eae magenta A iaaa EA 335 Recent Stories Tabarvesvasiectldessss toca coiiy aaa aaia e aAA ARAN ACATAR Taaa 337 NATOA ito na Tab EEA A T A A 340 Stock Scr ener ccsceeeeeeeeeeeeeeeeeeaeeeeaeeaeaeeeeaeeeeaeeaeaeeeeaeeaeaeeeeaseeeaeeenaeeeeaeeanae 343 Stock Screener OVEFVICW
453. t or intra day cash net credit or debit balances and money market Funds offered by Charles Schwab amp Co Inc member SIPC are not deposits or obligations of the above referenced bank are subject to investment risk are not FDIC insured may lose value and are not bank guaranteed Bank deposit account balances do not include interest that has been accrued since the last interest payment was made to your account X gt NOTE You must be in Live mode to see balances on the Balances tab When you are in Demo mode balances will not display use Descriptions Columns Total The Total Account Value is the sum of your securities unswept Account or intra day cash money market funds bank deposit accounts Value and net credit or debit balances in your account Indicates the change in account value from the previous trading day s close This includes your trading activity as well as deposits and withdrawals Available to The maximum amount of money in your account that you can Trade use to trade without accessing margin borrowing Using cash Available to Also known as Margin Buying Power this is the amount of Trade Cash money you can use to trade marginable equities using cash and the margin feature of your account View Buying Power Details 278 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Borrowing Details Button Available to Withdraw Using cash Available to
454. t the order See Trading Window Menu topic for details 94 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Direct Access Trading DIRECT ACCESS ROUTE COMPARISON Trading During the specified trading times for each routing channel Direct Access allows you to enter buy and sell orders for NASDAQ Listed and OTC stocks The table below shows a list of all the action types allowed with Direct Access NOTE Short sale orders can be placed as either day or GTC orders however GTC orders can expose you to substantial risk Although the stock may be borrowed on the day the order is entered it may not be available for loan on the day the order is filled An immediate buy in may result for your account The change order function is not accepted when routing orders via Direct Access Each routing channel has different order types hours of operation and order conditions The table below shows a quick reference guide for each destination including the following information hours of operation maximum number of shares order types and order conditions For more information about each destination view the individual topic for each Order Type of Hours of Order Destination Channel Operatio Types n Eastern Time ARCA NYSE Arca Limit Market Market Peg Primary Peg BTRD Bloomberg INET formerly ISLD INCA Limit Limit Invisible BRUT ECN i m Limit NASDAQ
455. t to change its extended hours session and may cancel extended hours sessions without prior notice e No matter when you submit a Direct Access Order you can only request a cancel you can never change your order Eligible Securities Most NASDAQ and listed securities are currently eligible for extended hours trading at Schwab However at any time any number of securities may not be available due to lack of trading interest during the Extended Hours Trading Session 142 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading Order Types Only limit orders and short sell limit orders not market orders are accepted during extended hours The maximum order size is 5 000 shares Quotes Quotes for the Extended Hours Trading session reflect the best Bid buy and Ask sell orders currently available through the participating ECNs NOTE Because Schwab Pre Market and After Hours orders are executed on Archipelago you should consider the ARCA quote as the most accurate indicator of bid ask prices available to you To View the NYSE Arca Order Book 1 Go to the Trading window 2 Click Settings gt General gt L2 Data tab 3 When the configuration box opens check ARCA Book Changing and Canceling Orders You can attempt to change or cancel an Extended Hours order within the same Extended Hours session as long as the status of your order is open Unexecuted Trades Unexecuted orders d
456. tab name by double clicking on the tab and entering the new tab name Delete tab Select to delete the current tab from the window name Use same When checked loading a symbol into one of the chart s tabs will symbol for also load the symbol on every tab in that chart window all tabs This option is only available in the Chart Tabs menu To enable Tabs 1 Click Tabs gt Enable in the window menu Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 21 StreetSmart Pro User Manual 2 To create tabs click Insert The Insert Tab window will open as shown below Insert Tab Name Tab 5 Location After Daily Copy Settings from lt Default settings gt OK Cancel ok 3 Enter a name for the tab and specify its location in relation to existing tabs in the window using the Insert Before After tab name fields 4 You can use another tab as the basis for your new tab by selecting the other tab from the Copy settings from drop down Select lt Default settings gt to create your tab with default settings 5 Click OK and the tab will display in the Tab window To change the name later you need only right click on the tab label and select Edit Then enter a new name To remove a tab click on the tab label and select Remove 6 Use same symbol for all tabs Chart Window Only Select this menu item so that it is checked if you want every tab to load the same symbol
457. table for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction Call your local Schwab office or write Charles Schwab amp Co Inc 101 Montgomery Street San Francisco CA 94104 for a current copy Member SIPC Straight Puts Straight Puts refers to the purchasing or selling of put options to open a position This strategy is also commonly referred to as Long or Short Puts Generally these two strategies are speculative in nature Long Put A strategy consisting of the purchase of a Put option This strategy is designed for a prediction that the underlying stock or index may decline For use when investor anticipates e Downward market direction security depreciation Financial Characteristics e Maximum Loss Debit amount paid for the option e Maximum Profit Strike price less debit paid for option e Break Even Strike price of option less the debit amount paid for the option Objective Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 121 StreetSmart Pro User Manual e Speculative gain The maximum loss on a long put is limited as long as the investor does not exercise it which will result in a short stock position for their account There is an additiona
458. tandard deviation of the percentage change in daily price Volume Volume is the number of shares traded in a security over a period of time On a chart volume is usually represented as a histogram vertical bars below the price chart Warrants A type of security usually issued together with a bond or preferred stock that allows the holder to buy a proportionate amount of common stock at a fixed price usually above the market price at the time of issuance for a period of years or to 390 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference perpetuity Warrants are transferable and trade on the major exchanges They are also known as Subscription Warrants Whipsaw A whipsaw occurs when a buy or sell signal is reversed in a short time Volatile markets and sensitive indicators can cause whipsaws For example a whipsaw would occur if a position trader initiates a long position on a bullish MACD crossover and has to close it the next day because of a bearish moving average crossover Williams R The Williams R is a momentum indicator that measures overbought oversold levels The interpretation of Williams R is very similar to that of the K Stochastic Oscillator Readings in the 80 100 range indicate that a security is overbought while readings in the 0 20 range indicate oversold Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 391 StreetSmart Pro User
459. te a symbol e Press the Delete Quick Remove to remove the selected symbol e Press Insert Quick Add key on your keyboard to add a symbol e If you re entering an option be sure you precede the symbol with a period for example INQFF Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 303 StreetSmart Pro User Manual e If you re entering an index be sure you precede the symbol with a dollar sign for example SPX e Press Enter or click OK e NOTE This will not permanently change the stocks in your Watch List To save your changes see Save Watch Lists 2 Right Click Add Remove e Right click in the Watch List window to be updated e Click Add Symbol or Remove Symbol e Right click on a group name and select Add symbol to group to add a new symbol to an existing group 3 Add or Delete Using the Symbol List To Add Symbols e Click on Settings gt Symbol List in the Watch List Menu e Enter the new symbol in the Add Symbol window e If you re adding an option precede the symbol with a period for example INQFF e To add to a group click the group name and then Add Symbol to Group To add the symbol independently click Insert Symbol e When you re finished entering click OK To Remove Symbols e Highlight the symbol to be deleted from your list and click Remove e When you re finished click OK e NOTE This will not permanently change the stocks
460. te understanding of StreetSmart Pro s capabilities If you have a question about the StreetSmart Pro software that cannot be answered by the Help file or User Manual contact your Schwab Active Trader Broker before taking any action Since StreetSmart Pro depends on third party data feeds lines and systems the accuracy and timeliness of market data cannot be guaranteed If data feeds servers and communication lines fail Schwab is not responsible for these third party components Alert your Schwab Active Trader Broker about any problems you encounter in using StreetSmart Pro so we can help resolve them Schwab will continue to upgrade the StreetSmart Pro software and User Manual periodically It is your responsibility to stay up to date with the most recent versions by downloading upgrades and enhancements when notified by Schwab In using this software you are acknowledging that you understand and accept the risks involved in online trading By making StreetSmart Pro available to you Schwab is not recommending promoting or endorsing any particular investment market data or trading strategies Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Link to Customer Education Click on the Education Weblink icon b in the toolbar to access all of Schwab s educational material including e Using StreetSmart Pro e Market Education e Direct Access Trading e Printable User Manu
461. term trading The upper and lower bands are plotted as standard deviation levels typically two standard deviations above and below the moving average Since standard deviation is a measure of volatility the bands are self adjusting They typically widen during volatile markets and contract during calmer markets The basic interpretation of Bollinger Bands suggests that prices tend to stay within the upper and lower bands The distinctive characteristic of Bollinger Bands is that the spacing between the bands varies based on the volatility of the prices During periods of extreme price changes or high volatility the bands tend to widen to become more forgiving During periods of stagnant pricing or low volatility the bands tend to narrow to contain prices When prices break through a band this may indicate that the move is strong enough to continue further Boxed Position Where the security is held in the account both as a long and a short position These positions can be of equal or unequal quantities i e full or partial box Bull Trap A bull trap occurs when prices break above a significant level and generate a buy signal but suddenly reverse course and negate the buy signal thus trapping the bulls that acted on the signal with losses Buy Purchase of a security Buy Signal A buy signal is a condition that suggests a time to buy a stock The signal will vary depending on the type of technical indicator used or it may
462. that position That adjusted number will be used as a basis for calculating the average share cost for any additional purchases and sales TRANSACTIONS only visible when Transactions tab is selected Update Allows you to view specific account transactions up to 90 days old See Transactions for more information 228 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Messages Window MESSAGES By clicking View gt Messages in the Account Detail menu you can view streaming order status in the Messages window for the current day only If you log off and back on multiple times during the day all messages for the previous session s will display in gray The Messages Window provides useful information about your software settings order status information alert messages and market session information If you make any changes to your software settings these changes will also be noted in the Messages Window The streaming data displayed includes e New Order Accepted e Orders Filled e Nothing Done Out e Alerts amp Conditional Order Events e Change Order e Cancel Accepted LE Messages 16 26 50 16 26 50 16 26 42 16 24 37 16 24 37 IERA ES Equity Market is now Closed 15 59 00 Equity Market Closing in 1 Minute SESS Equity Market Closing in 5 Minutes 15 26 22 00000000 Alert Server is running has As the Messages Window provides you with
463. the Recent Stories tab perform the following actions V Play this sound file 08_Sound way gt Add Remave GET RECENT NEWS ON A STOCK IN THE TRADING WINDOW 1 In the Trading window click Settings gt Links 2 In the Links window click on News then OK 3 Next time you load a symbol into the Trading window the news headlines for that security will automatically appear in the Recent Stories tab of the News window or 1 To run an impromptu query if you have Enhanced User Interface selected you may right click a symbol in any window and select Recent News for stock WATCH LIST NEWS 1 Set up your Watch List window so that News is one of the columns When news about a symbol in your symbol list becomes available an icon will appear in the News column P 338 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 News 2 Double click on the icon to display the headlines waiting for you in the Recent News tab of your News window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 339 StreetSmart Pro User Manual News Watch Tab The News Watch tab displays news for the symbols or news codes you specify Go to Settings gt General to select individual symbols watch lists or news codes to watch for new news amp News 1 Watch ABX AEM AU FCX GFI GG GLG HM EBK File View Settings Breaking News Recent Stories AMGN News W
464. the alert is activated and a confirmation will appear in the Messages window 6 To save your alert s in a file follow the process outlined in the previous sections Edit or Remove an Open Alert You can edit or delete an open alert by Click on the Alerts tab 2 Click on the alert you want to edit or delete to highlight it 3 From either the Alerts or the right click menu select Edit to make changes or Remove to delete the alert from the tab NOTE You can also double click on the Alert to open the Edit window If editing click OK to review your changes and activate the settings 5 When the alert is either deleted or edited a confirmation will appear in the Messages window 6 To save your settings in a file go to the Alerts or the right click menu and select Save All As or Edit if saving a single alert In the Save Alert window you can name it as a new file or add it to an existing file by selecting the Append to file checkbox Remove an Alert 1 Click on the alert you wish to delete 242 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts 2 In the Alerts menu select Remove Selected 3 The alert will be permanently deleted Remove All Alerts Used when you wish to permanently delete all alerts in the tab e Inthe Alerts menu select Remove All Activate an Alert When an alert fires it will be automatically placed in inactive status When an alert is
465. the bottom of the n day range and 100 at the top of the range The main faster line is called K while the second line called D is simply a moving average of K A stochastic value of 50 indicates that the last closing price is at the midpoint of the trading range for the specified period Readings above 75 may indicate that the security is overbought while readings below 25 could suggest it is oversold It is important to note that it is not unusual for Stochastics to remain in an overbought oversold condition for a long time period as the security s price continues to climb fall Generally a bullish interpretation may be suggested when the K line crosses above the D line while in oversold territory and a bearish interpretation may be suggested when the K line crosses below the D line while in overbought territory Stock Dividends A dividend paid in stock rather than cash Stop Limit Order An order that becomes a limit order once the security trades at or through the designated stop price A stop limit order instructs a broker to buy or sell ata specific price or better but only after a given stop price has been reached or passed It is a combination of a stop order and a limit order as such execution is not guaranteed even if the stop price is reached Stop Order A market order that is only activated when a print or quote that is at or through the stop price For equity sell stop orders the order is activated when the bid is
466. the stock s price and where the investor must maintain cash or Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 371 StreetSmart Pro User Manual cash equivalents in his account equal to the total amount of the potential assignment in the event the put expires in the money or is exercised by the owner of the put Channel A channel refers to the area on a price chart between two parallel trend lines that connect the highs and the lows of a prevailing trend Charting The set of techniques used in technical analysis in which charts are used to plot price movements volume and other indicators Close The price at which a security closed for trading on a given day Common Stock Common stock is ownership of a corporation An owner of a company s common stock is considered to have an equity position in the corporate structure of that company Confirmation Confirmation is a subsequent signal that validates a position stance Traders and investors sometimes look for more than one signal or require validation before acting For example confirmation of a trend change may entail an advance past the previous reaction high For an indicator such as MACD confirmation of a divergence may be a subsequent moving average crossover Not to be confused with a trade confirmation which verifies that a trade order has been executed Congestion Area At a minimum a series of trading days in which there is no
467. there is no guarantee the out of the money option would retain a high premium even with an increase in volatility Rather than selling following a dramatic price move the investor can continue to hold both options until expiration anticipating even more dramatic price movements in the future However unless such movements do occur time decay will eventually take its toll on both options premiums For use when investor anticipates e Dramatic movements in security price e g due to an earnings announcement but unclear whether movement will be up or down e Increased volatility Financial Characteristics e Maximum Loss Total premiums paid e Maximum Gain Unlimited e Loses value with time Objective e Speculative gain EXAMPLE Long Straddle XYZ trades at 25 00 share An investor anticipates that the stock will dramatically rise or fall in the near future The investor purchases one at the money put for 2 00 and one at the money call for 2 00 to participate in large movements in either direction Since each contract represents 100 shares the total cost to the investor for buying both contracts is 400 00 To break even the stock must either fall 4 00 share to 21 00 or rise 4 00 share to 29 00 at or before expiration Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 129 StreetSmart Pro User Manual The investor will profit if the stock goes up more than 4 00 share or falls more than 4 0
468. time allowing all price data to influence the average By putting more weight on recent price data the EMA reduces the time lag and reacts more quickly to recent price changes Moving Average Convergence Divergence MACD The Moving Average Convergence Divergence is a trend following momentum indicator that shows the relationship between two moving averages The MACD line is calculated by taking the difference between a longer period and shorter period moving average typically 26 day and 12 day respectively It is the interaction of these two moving averages that gives the indicator its name as over time the two are constantly converging and diverging A signal line is also used which is typically the 9 period moving average of the MACD line Exponential moving averages are typically used for both the MACD and Signal calculations because they tend to respond more quickly to changes in price Moving Average Convergence Divergence Histogram MACD Histogram A variation of the MACD that plots the difference between the signal line and MACD line Changes in the spread between these two lines may be spotted faster using the histogram display potentially leading to earlier trading signals Multiplier The premium is multiplied by the multiplier multiplied by the number of contracts to determine the actual cost of an option purchase The multiplier is 100 in the case of standardized options for both equity and index options however stock spl
469. tment opportunities Strategy Tester Learn how to use historical market data and technical analysis to help you make future trading decisions Strategy Matrix See how to use the Strategy Matrix to monitor technical strategies for individual securities or indexes Strategy Ticker Learn to use the Strategy Ticker to continuously scan the entire market for securities and indexes that meet pre defined technical analysis parameters Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Navigating Online Help Answers to your questions about StreetSmart Pro are at your fingertips Here s a brief guide to navigating Online Help before you Get Started NEW FEATURES The most recent changes to the software TRAINING Logon to Schwab com and click the My Home tab and then the My Benefits subtab for information on StreetSmart Pro training CONTENTS TAB If your question relates to a specific window or function of the software 1 Click on the corresponding chapter in the left hand navigation panel 2 Doing so will display another tier of chapters or topics directly below them Click the one that best describes the type of information you re looking for FULL TEXT SEARCH If you are looking for information on a specific subject you may perform a search of the help contents by entering the search word or phrase in the upper left corner Search field StreetSmart Pro help uses a natura
470. to Save screen space Show L2 Options Data Check to display the Level 2 Options tab in the Trading window For more information on Level 2 options review the Level 2 Options Tab topic Show Status of Bid Ask This information will appear in Level II Status of Bid Ask shows the current status of the Market Maker K closed O open L open non refreshed in the morning and closed in the evening This option will be grayed out if you are not enabled for Level IT Show Time of Bid Ask Displays in Level II the time that the price server received the quote 84 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading This option will be grayed out if you are not enabled for Level IT Sort Quotes by Size Sorts all the posted quotes at each Tier in Level II by Size and then Time where the largest size quote would be at the top of the tier If multiple quotes have the same size then sort by order of oldest first Watch ECNs Will highlight all ECNs on Level II Set the color of the highlight by going to Settings gt Colors and clicking on the color wheel next to Watches Red is the default color This option will be grayed out if you are not enabled for Level IT Watches You may choose to highlight four Market Makers ECNs in Level II The colors can be changed by going to Settings gt Colors and clicking on the color wheel next to Watch
471. to edit the current tab s settings including the name and location Delete tab Select to delete the current tab from the window name Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 297 StreetSmart Pro User Manual s TIPS e Quick Clear Clear all symbols from a Watch List by clicking on File gt Clear Watch List or by clicking Settings gt Symbol List then click Remove All e Auto Sorting To have your Watch List display the symbols in your preferred order 1 Uncheck both the Enable Sorting and Auto Sorting check boxes using Settings gt Columns Clear the Watch List via File gt Clear Watch List 3 Insert the symbols one at a time in the order you wish to view them using either the Insert key or by right clicking in the Watch List and selecting Add Symbol e Right Click Shortcuts for Watch Lists o Load Symbol into the Trading window o Recent Stories for Symbol which opens recent news for the symbol in the News window o Link to Research Ext Quote for Symbol o Add or remove symbols from the watch list or remove the symbol you re on o Hide Show Menu o When using an Option Symbol the Hypothetical Option Pricing model is available o Access help for the Watch List window WATCH LIST COLUMN DESCRIPTIONS Watch Lists can track more than 70 different criteria for stocks indices and options Each criterion is displayed in separate columns
472. to the alert being triggered This can be done by going to the Alerts tab of your Account Detail window selecting the alert and then selecting Edit from either the Alerts drop down or right click menus For more details see Edit or Delete Alerts on the next page Note that once the order is submitted it becomes a live order If your conditional order is a market order it will probably fill before you would have a chance to cancel or change it If you specified that the conditional order be sent as a limit order it can be changed or cancelled just like any other Open order Direct Access Conditional Order 00000000 Order You would like to conditionally Buy 1 share of AAPL 5 Limit DAY for account 00000000 on INET Errors arnings This conditional order will be active during the current logon session only Cancel After completing the Alert window and specifying a Conditional Order you will receive a verification of your order to review unless you have disabled this 22 Account Detail amp Alerts function After reviewing your order and you click OK the following window will appear StreetSmart Pro Alert 1 Test If SAPL s bid loses 5 points then buy 1 share of AAPL at 5 on INET and beep and load trading window This conditional order will be active during the current logon session only Please review your conditional orders carefully If you have not indicated that you wish to confirm your order before
473. to your chart Go to Chart Studies for information on each available study Trend Lines Click to draw Trend Lines on the chart The pointer will change to a pencil icon Click and drag to draw the trend line Click the Trend Line button again to stop drawing trend lines or select another button Edit Trend Click and select from the drop down list which Trend B ve a WN Lines Line you wish to edit The button is only available when the most recently selected chart has trend lines drawn on it The Edit Trend Line window lets you select the type of trend line regular Fibonacci best fit regression etc as well as the color and label name for the line Adds a horizontal GREEN line wherever you click on the chart to indicate the Support levels you want to identify in the chart you are viewing Ay Resistance Adds a horizontal RED line wherever you click on the chart to indicate the Resistance levels you want to identify in the chart you are viewing New Tab Click to add a new tab to the most recently accessed chart window You must have Tabbing enabled for the chart in order to click the New Tab icon Show All Data If checked shows chart for the time frame specified in the Range days If unchecked this will display what is indicated in the Data to show field A scroll bar will appear at the bottom of the chart allowing you to move back and or forth through Range days selected 162 Copyright Charles Schwab
474. tock For example TAP A is for Travelers Class A stock and TAP B is for Travelers Class B stock NOTE Not all Stock Class stocks use the indicator For example VIA is Viacom Class A but VIA B is Viacom Class B For best results use the Symbol Lookup from the StreetSmart Pro Toolbar A How do I set up Watch List Groups To establish a new group highlight the line in the watch list where you would like the group to be Using the right click menu select Insert Group A line will be inserted in the watch list and the cursor will appear allowing you to type in the name for your Group Adding symbols to a group can be done via two methods e Inserting a symbol to a Group one at a time Highlight the Group name and using the right click menu select Add Symbol to Group e Inserting several symbols to a Group at one time Go to Settings gt Symbol List Fill in the Symbol field click on the name of the group you wish to add it to and click Add Symbol to Group NOTE To add symbols into the main Watch List use the Insert Symbol menu choice TOP TEN FAQ How can I see Top Ten information for NASDAQ equities too Clicking on the Top Ten icon in the toolbar will launch information for NYSE stocks Clicking a second time will launch information for NASDAQ stocks Why is the Top Ten window empty 406 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference This could be happening for the follo
475. tock with cash dividends reinvested on the pay date for the period covering the most recent 5 fiscal years Total Return 3 Rate of return representing the price appreciation of a Mon stock with cash dividends reinvested on the pay date Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 363 StreetSmart Pro User Manual for the period covering the most recent fiscal quarter Total Return 6 Rate of return representing the price appreciation of a Mon stock with cash dividends reinvested on the pay date for the period covering the most recent 2 fiscal quarters Total Return 9 Rate of return representing the price appreciation of a Mon stock with cash dividends reinvested on the pay date for the period covering the most recent 3 fiscal quarters Dividend Payout Indicates the percentage of annual earnings paid out in Ratio dividends Calculated by dividing the indicated annual dividend rate by per share earnings Indicated dividend divided by 12mo EPS Held by Percentage of outstanding shares held by institutional Institutions investors Relative Strength Measures each stock s price performance compared to all other companies in the S amp P universe on a rolling 13 week basis Stock Exchange Shows the exchange NYSE NASDAQ etc on which the stock trades S amp P Stars S amp P s fundamental analysis and evaluation of the short term six to 12 month appreciation potential of
476. top Loss Straddle Trailing Stop Volume Alert Complete Cancel With StreetSmart Pro you can use the following Alert Templates or create your own Straddle e Can help protect you against large swings in the market by alerting you to both increases and decreases in a security s Bid price e This Alert includes the Conditional order action Trailing e Allows you to follow the price movement upward and only Stop trigger the Alert when the Bid decreases by the amount specified e This Alert includes the Conditional order action Stop Loss e Alerts you when the Bid decreases to a specified Value e This Alert includes the Conditional order action Ask e Alerts you when the Ask increases to a specified Value Increases Buy In e Alert you when the Ask of a specific security increases by the specified Value e Alerts you when security volume gains the specified Value Alert Margin e Alerts you when the trade price decreases to 3 05 At Equity 3 00 marginability increases to 100 Warning Day Alert e Alerts you when the Change from Open either Increases to or Decreases to the specified Values Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 255 StreetSmart Pro User Manual SETTING ALERT TEMPLATES 1 You can either create a new template from scratch or go to the Account Detail window Alerts tab and select Alerts gt Templates from the menu 2 To set up a template fr
477. triggers when it Gains 20 points or 200 or Increases to 30 Change from Close You can set up an alert to trigger based on the difference between the current price of a stock and the previous closing price Note that the change amount itself is used as a basis for the calculation so that if the Change from Close is 10 cents for example and you want an alert to trigger when the Change from Close is 30 cents it would need to gain 20 points or 200 Likewise the Change from Open could increase to 30 cents Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Criteria There are four criteria available e Increases to above e Decreases to below e Gains e Loses The amount you want the criteria to change by For Gains and Loses criteria if a negative value is entered the value will revert to 0 NOTE Choose Loses in the criteria window and enter a positive value rather than trying to trigger an alert based on negative gains Increases To and Decreases To criteria will accept either a positive or negative value depending on your goal Points Work in conjunction with the Variable and Criteria or The Variable and Criteria you choose will change your available Shares options for these fields Note that if you wish to set a percentage value or set up a Trailing Stop you must use the Gains or Loses criteria Trailing Works only with the Gains and Loses
478. ts As a result the investor will receive a net inflow of capital since the price of the options sold exceeds the price of the options purchased Consequently bull put spreads are often referred to as credit spreads To achieve maximum profit the underlying security price must rise above the strike price of the short written put at expiration rendering both puts worthless For use when investor anticipates e Upward market direction security appreciation Financial Characteristics e Maximum Loss The difference between the strike prices less the amount received to establish the spread e Maximum Profit Net premium received Objective e Speculative gain The maximum loss on a bull put spread is limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the low strike put the maximum loss is no longer limited to the premium outlay There is an additional risk associated with the expiration weekend If the short put is assigned while the long is not auto exercised because for example the stock closes between the two strikes the investor ends up with a long position in the stock Bad news during the weekend could force even greater losses on the investor before he can exit the long equity position EXAMPLE Bull Vertical Put Spread Currently XYZ trades at 25 share The investor employs the spread strategy selling one in the money put Strike 30 for 6 00
479. ttern marks a change in trend from up trend to down trend Rights Rights allow existing shareholders of a corporation to subscribe to shares of a new issue of common stock before that stock is offered to the public A right usually has a life of 2 to 4 weeks is transferable and entitles the holder to buy the new common stock below the Public Offering Price Rights are often granted to protect existing shareholders from the effects of dilution Rounding Tops and Bottoms Generally considered to be reversal patterns rounding tops and bottoms are areas on the price chart that indicate smooth curvature of prices rather than distinct peaks or troughs A rounding top displays as a convex shape sometimes called an inverted bowl that can precede a new down trend A rounding bottom displays as a concave shape often called a bowl or saucer that can precede a new up trend There are currently no measuring formulas associated with these patterns AIBICIDIJE JFIGIHITIJI KILIMIN JO P IQ RIS T UIVI WI XIYIZ Sector A sector is a group of companies that generate revenue in similar ways and tend to rise and fall at the same time of the economic cycle Sector investors watch for strength or weakness in the various sectors before making investment decisions The relationship between sector strength or weakness and the business cycle is called Sector Rotation Security Type The type of security such as stock bond or mutual fund Sell
480. tus of certain routing venues in the Status Bar Click Toolbars gt Customize gt Status Bar in the main menu and check the routes for which you wish to see connection status You may also indicate whether the Caps Lock and or Number Lock should be permanently enabled or disabled in the software by checking unchecking those options PROXY SETTINGS In the Settings gt Proxy menu you can change proxy configurations if you re running your software on a proxy server or behind a firewall Go to the Main Menu Bar choose Settings gt Proxy and enter your changes in the Proxy Settings panel NOTE StreetSmart Pro supports logon via an HTTP Proxy only Be sure to contact your system network administrator for the appropriate proxy settings SOFTWARE UPDATES As new upgrades and enhancements become available you will receive an announcement starting the first time you Logoff after the upgrade or enhancement is available You can choose to automatically load the upgrade or postpone loading it The update announcement window will continue to appear at each Logoff until it has been loaded onto your computer NOTE It is recommended to accept upgrades and enhancements as they become available to you for the best user experience 32 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started TROUBLESHOOTING GUIDE Start with this ISP Internet Service Provider checklist e Is your modem function
481. u are interested in viewing Why do I hear about stocks hitting new High Lows but do not see them display Check the filter settings in Settings gt Filters and change if necessary Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 407 StreetSmart Pro User Manual Printable User Manuals PRINTABLE USER MANUALS Download a printable version of the Online Help by clicking the link below You will need the latest version of Adobe Acrobat Reader to view this PDF formatted document Printable User Manuals e Full Manual e Getting Started e Toolbar Icons e Trading e Account Detail amp Alerts e Charting e Strategy Testing Tools e Market Data Tools e News amp Messages e Stock Screener e Reference Quick Start Guide ABOUT THE USER MANUAL This Educational Guide and its content including price and volume data screen samples and queries are for informational and educational purposes only Although it may provide general information relating to trading or investment approaches you should not construe anything in the guide as legal tax and investment financial or other advice Nothing contained in the guide constitutes a solicitation recommendation promotion endorsement or offer by Schwab of any particular security transaction or investment strategy Schwab makes no recommendations or endorsements with respect to any of the strategies chart patterns or indicators referenced nor does Sch
482. ue to resistance The odds favor an upside breakout from an ascending triangle A descending triangle occurs when there are lower highs as with a symmetrical triangle but the lows are occurring at the same price level due to support The odds favor a downside breakout from a descending triangle Prices often breakout rapidly from a triangle and the breakout can be confirmed when accompanied by an increase in volume AIBICIDIJE JFIGIHITIJI KILIMIN JO P Q RIS TJUIVI WI XIYIZ Up Tick Rule The up tick rule requires that selling short any exchange listed equity may only be done when the last reported sale price is higher than the previous reported sale executed at a different price previous sales at the same price do not count NASDAQ stocks when executed on NASDAQ may only be sold short when the current bid price is higher than a previous bid When a NASDAQ stock trades on an exchange there is no up tick rule applicable unless that exchange implements the up tick rule for NASDAQ stocks There is no up tick rule for OTC Bulletin Board and Pink Sheet stocks When an order is entitled to an exemption from the up tick rule that order can be placed as a sell short exempt order there are limited instances where the rules permit the exemption Please see Short Sell Exempt for more information Volatility Volatility is a measurement of change in price over a given period It is usually expressed as a percentage and computed as the annualized s
483. uesday 11 29 2005 09 46 Central Standard 10 mins 100 11 23 2005 13 50 11 29 2005 10 20 233 00 40 00 2 73 166 08 281 00 Buy amp Hold Performance 2 81 Buy amp Hold APR 170 94 Strategy Matrix The Strategy Matrix tool lets you monitor technical strategies for individual securities or indexes crossing thresholds specified by the strategies being monitored H Strategy Matrix File Settings Up 79 Down 49 None 4 Bid 81 34 Ask 81 36 Last 81 34 Strategy Sminbar 10 minbar 15 minbar 30 minbar 60min bar l Daily baral M sg Sim 20 Prics Strategy Ticker The Strategy Ticker tool monitors the entire market and or a defined set of equity or index symbols in real time for triggers against specific technical strategies Once you have established one or more strategies to use in your trading the Strategy Ticker and Matrix tools will help identify opportunities based on those strategies using real time data Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 189 StreetSmart Pro User Manual F Strategy Ticker Fie Settings Symbol Trend Price State Barsi Time 20Da _ 5Dav Open Closer Open Close IBMD BMD BMD GNA GNA GNA 7 00 7 00 7 00 5 52 5 52 5 52 5 52 5 52 5 52 5 52 5 52 5 52 Mov Avyg5 Min Mov Avg5 Min Mov Avg15 Min Mov Ayg5 Min Mov Ayg5 Min Mov Avg5 Min Mov Avg5 Min Mov Avg15 Min Mov
484. uity Refer to Back Test Settings to learn about each of those settings TIP When establishing Back Test settings for a strategy being used in a Chart the Bar Size and Number of Bars for Test is effectively the same thing as the Interval and the Range in the chart Settings gt General e From the Tools menu you have access to Strategy Open the Strategy Center to apply a strategy to the Center chart You can also edit or create a new strategy from the Strategy Center To add a strategy to the chart click on the strategy in the Available Strategies list and check Show selected strategy on chart Edit Strategy Opens the Edit Strategy window for the strategy currently applied to the chart Show Strategy Once an initial strategy has been applied to the chart you can use Show Strategy to hide or show the strategy on the chart 166 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Charts Strategy The Strategy Performance Details window breaks down Performance the details and statistics of the strategy being tested in Details the Chart window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 167 StreetSmart Pro User Manual Studies and Trends CHART STUDIES Chart Studies use a stock s price movements volume and other historical information to attempt to find patterns that may indicate shifting price trends By learning what
485. uld trigger an order to close your position if either are reached To create a loss exit if you are long a position create a condition using Bid decreases to as the criterion You may also choose to use a Bid loses _ Points or _ providing more flexibility than what is available using a Stop order If you are short a position you can do them same using an Ask variable To create a profit exit if you are long a position create a condition using the Ask increases to as the criterion You may also choose to use Ask increases __ Points or ___ providing more flexibility than is available using a Stop order If you are short a position you can do the same thing using the Bid variable Be sure to select the Or radio button at the top of the second condition if you are including both a loss exit and profit exit in you conditional order NOTE While you can use this type of Alert to help with risk management it is only similar to a Stop order if you select Enter Order as one of the Actions If you choose not to Enter Order the Alert will still let you know when your risk management threshold has been reached but you would have to enter a new order from the Trading window to minimize your risk exposure Alert With Conditional Order using Trailing Stop The functionality is very similar to the Alert with a Conditional order The difference is that you now have a variable trigger Trailing Stop which will become effective only after the price
486. unsettled debits or credits for trades will show here until settlement You do not start paying interest until trades are settled Short The net Open balance in your account arising from short sale Balance transactions Total Cash The net Cash balance in your Schwab account Securities This displays the value of securities you hold long and short in your account Note Marginable securities are always held in your margin account non marginable securities are always held in your non margin account Cash Account amp Margin Account Market The total marked to market value of your long positions Value Long broken out by marginable and non marginable securities based on the last trade price If for some technical reason real time valuations are not available the values displayed may be based on the prices from the close of the previous business day or on twenty minute delayed quotes Market The total marked to market value of your short positions Value Short broken out by marginable and non marginable securities based on the last trade price Such positions will typically be shown in the margin account column Options This displays the value of options you hold long and short in your account Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 281 StreetSmart Pro User Manual Note Your options are typically held in the margin portion of your account Option information only displays for a
487. ur window If the route is available it will display in green if unavailable red You may also indicate whether the Caps Lock and or Number Lock should be permanently enabled or disabled in the software by checking unchecking those options The checked boxes will then display at the bottom status bar as shown below INET ARCA BRUT BTRD ONTD SM Current Session Standard SETTINGS These fields for making server adjustments should only be changed after consulting with a Schwab Active Trader Broker or Technical Support Services representative Free Check to allow windows to move outside the main application Floating frame to view on multiple monitors for example Windows When unchecked all windows will open within the main application frame 12 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started Auto Save Automatically saves the current layout of your screen when you Layouts exit If you do not want to save your layout upon exiting uncheck this box Inactivity Customize the amount of time that you wish to remain online Timeout before the software logs you off due to inactivity Select a number between 1 amp 8 The default setting is 1 When you change this setting a confirmation message will appear in the Messages window Logging off and then back on is not required for this setting to take effect Update When checked allows you to choose Last
488. urrent Ask 55 e Last Trade 50 e Open 49 Change from Open 1 e Previous Close 48 Change from Close 2 272 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Goal You already have an unrealized profit of 5 per share 11 11 of original cost and you want to enter an order to sell when you have a profit of 10 per share 22 22 of original cost on XYZ Variables Increases Decreases Gains coe ide to TA 10 000 5 000 100 Gains Trade 500 Gains Chg from Open 250 Gains Close Chg from Close Alerts using Trade Price Change from Open and Change from Close are triggered based upon Last Trade Last Trade can be based upon either Bid or Ask so be careful when setting up these types of alerts Scenario 2 Preserving a Gain You bought 1000 shares of XYZ at 45 e Current Bid 55 e Share P amp L is 10 55 45 e Current Ask 60 e Last Trade 55 e Open 52 Change from Open 3 e Previous Close 51 Change from Close 4 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 273 StreetSmart Pro User Manual Goal You have an unrealized profit of 10 000 22 22 of original cost and you want to enter an order to sell if your profit decreases to 5000 11 11 of original cost Variables Increases Decreases Gains Loses Loses to to Trade 5 000 N A N A 5 000 50 P amp L Loses
489. us day s Close expressed as a percentage i e difference between Close and Current Price divided by Close updated at 6 a m Eastern Time Change Open Change in the price from the Open expressed as a point value Change Open Change in the price from the Open expressed as a percentage i e difference between Open and Current Price divided by Open Trading Range Shows the trading range for the current day i e intraday high intraday low Change of Range Percentage difference between the daily High and the from High Current Price as a percentage of the trading range for the day Change of Range Percentage difference between the daily Low and the from Low Current Price as a percentage of the trading range for the day Chg from 5 Day Avg Difference between the average close for the last five Close days and the Current Price expressed as a point value Chg from 5 Day Difference between the average close for the last five Avg Close days and the Current Price expressed as a percentage i e difference between 5 Day Avg Close and Current Price divided by 5 Day Avg Close Chg from 20 Day Difference between the average close for the last 20 Avg Close days and the Current Price expressed as a point value Chg from 20 Day Difference between the average close for the last 20 Avg Close days and the Current Price expressed as a percentage i e difference between 20 Day Avg Close and Current Price divided by 20 Day Avg Cl
490. ut will look exactly like what you have on the screen So if you print a chart with a black background it will print with a black background If unchecked it would print with a white background and white text would print black e Expand Columns to Fit If checked printouts involving columns of data such as Watch Lists will print with the full heading of the Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 35 StreetSmart Pro User Manual column showing If unchecked the columns will be the same width as they are on the screen and column names may be partially hidden 3 To adjust the Margins and the Header and Footer content of the printed page click the Margins amp Header Footer tab Format amp Options Margins amp Header Footer Margins Top 1 00 Bottom 1 00 z Left 1 25 Right 1 25 Headers amp Footers blank v blank v blank v Left Center Right blank v blank v blank v 4 Decreasing the size of the Margins may help fit more data onto a page without having to shrink the size of the data thus keeping it more readable Use the up down arrows to adjust the margin size on each edge of the page 5 If you wish to apply Header and or Footer data to your page select the data you wish to display from the drop down lists in the Headers amp Footers panel The items you choose in the top row will be at the top of the page in t
491. utive winning trades excluding open positions Consecutive Winning Average Average number of bars for which a winning position was Winning Hold held Time Total Winning Hold Time Winning Trades Total Winning Total number of bars in a winning position Hold time Average Average profit from winning trades Winning Profit Maximum Maximum profit from a winning trade Profit Lowest Lowest profit from a winning trade Winning Profit Losing Trades The total number of trades which lost money excluding open positions 210 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Strategy Testing Tools Losing Longs Number of losing long trades excluding open positions Losing Shorts Number of losing short trades excluding open positions Average Loss Average loss from losing trades Maximum Loss Maximum loss from a losing trade Lowest Loss Lowest loss from a losing trade Average Losing Average number of bars for which a losing position was held Hold Time Most Most consecutive losing trades excluding open positions Consecutive Losing Average Ratio of average profit from winning trades divided by Profit Averag average loss from losing trades e Loss Total Losing Total number of bars in a losing position Hold Time Out of Market Average number of bars out of the market Average Out of Market Maximum number of bars out of the market Maximum Out of Marke
492. utton is actionable only when either SmartEx Schwab Pre Market or Schwab After Hours is selected in the order route drop down This feature allows you to save the order to the Saved Order tab for later submission e If the account is restricted to liquidations only the action buttons will be grayed out e To liquidate equities and options in a restricted account go to the Account Detail Positions tab and select Close from either the right click or the Positions drop down menu ORDER VERIFICATION StreetSmart Pro software provides you with Order Verification and Warning amp Informational Messages related to your order These two settings are found in the Trading window menu under Settings gt General and the default settings are checked to activate these important features 74 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading General Orders L1 Data L2 Data Time amp Sales Commissions meetin g Quantity E Order Vertication Save Curent Quantiy Always Set Quantity to Open Postion O Defauk INET Orders to IOC Set Quantity to Default E Defauk MM Dbi Cik to SuperMontage Defauk Share Size 1000 E Pop up Execution Panel Outside Lv Il Detauk Contract Size 1 Axto Cancel Timeouts SuperMontage Price Increment 0 01 ECN NOTE Bold check boxes affect all Trading Windows in al layouts NOTE The Settings gt General window includes additional features for Direct A
493. w i e if the stock s 52 week low is 7 and the daily low is 8 this column will show a 1 Previous Day s High Highest price a stock reached the previous trading day 5 Day High Highest price the stock has reached over the last five days not including today 20 Day High Highest price the stock has reached over the last 20 days not including today Highest price the stock has reached over the last month not including today YTD High Highest price the stock has reached over the last year not including today Previous Day s Low Lowest price a stock reached the previous trading day 5 Day Low Lowest price the stock has reached over the last five days not including today 20 Day Low Lowest price the stock has reached over the last 20 days not including today 1 Month Low Lowest price the stock has reached over the last month not including today YTD Low Lowest price the stock has reached over the last year Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 355 StreetSmart Pro User Manual not including today Difference between most recent open and close prices expressed as a point value Open Close Gap Difference between most recent Open and Close prices expressed as a percentage 100 Open Close Close Change Close Change in the price from the previous day s Close expressed as a point value updated at 6 a m Eastern Time Change Close Change in the price from the previo
494. w Settings gt General window you will be asked to verify the details of your order before it is sent Click Place Order to submit the order or Do Not Place Order to cancel your action PARTIAL FILLS SmartEx An order routed through SmartEx may have partial fills Schwab will continue attempting to fill the order until it s completed Direct If you For a Day Limit order there is only one commission charge and generally one order number assigned unless you change your order regardless of the number of fills it takes to complete the order Good Till Cancelled orders have the potential for multiple commissions if the order takes more than one day to complete One commission will be charged for each day s combined fills based on execution prices and quantities Access have Direct Access enabled for your account it is your responsibility to make sure your order is filled to your satisfaction Partially filled orders require a decision on your part to either enter an additional order for the remaining shares or not 88 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Trading For Direct Access orders there is always the potential that your order will not completely fill As the default settings have a maximum value of 180 seconds for ECN orders it is very possible not to complete an order in under three minutes depending upon the symbol market and routing method Commissions will be b
495. wab recommend the use of technical analysis as a sole means of investment research At Schwab we recommend that investors define their goals risk tolerance time horizon and investment objectives in addition to researching possible investment choices through multiple channels Use of technical analysis may result in increased frequency of trading and therefore significantly higher transaction costs than a fundamental approach CyberTrader an affiliate of Charles Schwab amp Co Inc provides technical services for StreetSmart Pro a Schwab product StreetSmart Pro is a registered trademark of Charles Schwab amp Co Inc Schwab StreetSmart Pro is a pending trademark of Charles Schwab amp Co Inc Access to Electronic Services and your account may be limited or unavailable during periods of peak demand market volatility systems upgrades or maintenance or for other reasons 408 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Reference Agreements Your Agreements With Schwab amp Other Useful Information CyberTrader an affiliate of Charles Schwab amp Co Inc provides technical services for StreetSmart Pro a Schwab product Charles Schwab amp Co Inc member SIPC and CyberTrader Inc member SIPC NASD are independent subsidiaries of The Charles Schwab Corporation StreetSmart Pro is offered at no charge to a select group of non professional Schwab Active Trader cl
496. wing reasons The connection to the server could be down You can try to reconnect using the Reconnect To Servers function located in the main StreetSmart Pro toolbar under Help If that is not successful logoff and back on If you are logged in during the Extended Hours Trading sessions the window could be empty How can I reduce the amount of space that the Top Ten windows occupy in the display window The Top Ten windows can be formatted in a variety of different ways using data you select These settings are located in the Settings gt General window e Determine if you need to see information for both the NASDAQ and NYSE markets e Determine if you are really interested in gainers decliners and volume or if a subset of this information is what you find most useful e Determine if you need to see all three data columns e See if formatting horizontally works better in you existing layout HIGHS amp LOWS FAQ Why is the window always empty when I first login or open the window This could be happening for the following reasons e This window populates in a similar manner to the Time amp Sales panel in the Level II montage and does not display any historic data As new highs and lows are reached the window begin to populate e Because this data stream does not include historic data if you log in outside of market hours it could remain empty e Go to Settings gt General to make sure that you have selected the data yo
497. xcept tends to show less market noise due by increasing the number of periods used in the calculation Bollinger Bands The center is a simple moving average The top and Top Middle bottom lines are placed n standard deviations above Bottom and below the centerline Since standard deviations are a measure of volatility the bands widen during volatile price action and contract when the trading range tightens Trend following momentum indicator that uses three exponential moving averages a short or fast average a long or slow average and an exponential average of their difference the last being used as a signal or trigger line above 20 Day Momentum Measures the amount that a security s price has changed over the last 20 days If today hasn t closed yet it uses the current price for today s close 20 Day Momentum Measures the amount that a security s price has from Close changed over the last 20 closes 40 Day Momentum Measures the amount that a security s price has changed over the last 40 days If today hasn t closed yet it uses the current price for today s close 40 Day Momentum Measures the amount that a security s price has from Close changed over the last 40 closes 60 Day Momentum Measures the amount that a security s price has changed over the last 60 days If today hasn t closed yet it uses the current price for today s close 60 Day Momentum Measures the amount that a security s price has from Close
498. y also choose the Show SMA feature which will show a simple moving average line in the Volume study The image below shows the Volume study with a 20 period SMA overlayed i Chart 2 Applied Materials 1min 3min 15min Daly Weekb AMAT Daily 280 days _ 97 194 967 Williams R A momentum indicator that measures overbought and oversold levels The interpretation of Williams R is very similar to that of the K stochastic indicator The oversold indications are in the range of 80 to 100 while the overbought indications are in the range of 20 to 0 You can change the periods used in the calculation from the default of 12 For calculation purposes R is simply K 100 Directional Movement is a trend following system that consists of DI DI DX and ADX These values are interrelated as shown below ADX F DX 1 F ADX I Di DI DX 100 _______ Di DI if the denominator gt 0 0 otherwise APDM AMDM Di 100 Di 100 AR and AR where 4 F R 1 F AR gt gt R max High Low High Close _ Close _ Low where Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 179 StreetSmart Pro User Manual APDM F PDM 1 F APDM AMDM F MDM 1 F AMDM aes High High if gt 0 0 otherwise MDM is otherwise If both and are gt 0 the smaller is set to 0
499. y results here Save query results to a text file stk which can be imported into the Watch List window and various tickers within the software It can also be imported into Excel or opened in Notepad Recently Viewed Shows a list of the most recently accessed User Query Query Files files Click on a query file to re load it fexit Closes the List Window VIEW Query When enabled will open a separate window showing the Description text description of the current query New Item List Opens a separate panel at the bottom of the Screener window that displays new stocks as they are added to the list Note that if the refresh rate of the query is set to Never new stocks will not be added to the results and this panel will remain empty When enabled will display in the bottom bar of the window the number of stocks meeting the criteria of the query SETTINGS The Queries window gives you access to all Built In queries and User Queries that have been loaded see Load Query File above for more information on loading User Queries 350 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener This window will allow you to add a New query View a Built In query Edit a User query Remove a User query or get the Description of the highlighted query To create a query based on a Built In query 1 Click on a Built In query in the list 2 Click on the View button 3 The query
500. y subsequent dialog boxes that appear Click on the close button X in the right hand corner of the main menu 2 The system will ask you to confirm the action NOTE You will automatically be logged off if you close the Account Detail window Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 9 StreetSmart Pro User Manual Main Menu Bar Use the Menu Bar at the top of your window for quick access to Schwab com links Live Help layouts and other software settings and more Schwab StreetSmart Pro File Toolbars Settings Tools Schwab com Help Account 00000000 LIYE Acct Net Worth PEZA Stine ust ef Gi Ge et sn Gl 4m 1m t od OA fhe MAIN MENU OPTIONS FILE Logon Click Logon to connect to your account and begin receiving data Logoff Click Logoff to exit your account and disconnect from the servers Load Layout Click to choose a saved layout Save Layout Click to save changes to the current layout under the same layout name Save Layout Click to save the layout as a new name As Recently Used The last five layouts used are listed for convenient loading Layouts Click on the name of the layout you want to see Exit o Click Exit to logoff and close the software TOOLBARS TIP Click on any of the toolbars except the Status Bar and drag it to move it to another location in your layout Be sure to Save your layout under the File menu if you make layout
501. yed in this window including those in money market funds You can sort the table by clicking on any column heading A second click will reverse the sort order Descriptions Columns Symbol The unique 1 5 characters used to represent the security Symbols are defined by the different markets or exchanges Sometimes a security might not have a symbol in which case an internal Schwab reference will be used Name The full name of the security Quantity For stocks or mutual funds this field reflects the number of shares you currently hold For fixed income securities this field reflects the face value of the securities For options this field reflects the number of option contracts Price si The price at which the security last traded Market This figure reflects the current value of your position normally Value calculated using real time quotes where possible This value is updated as the quote changes The total price paid for the position the position An asterisk next to this value indicates that the amount displayed is in most cases not correct Usually this is due to incomplete data on record for the position If all or part of the position was purchased before January 2004 then you will see an asterisk Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 287 StreetSmart Pro User Manual Also note that the cost figure provided is the sum of all fills and does not include commiss
502. ymbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Partial fills The Quantity Filled At column displays information for the first fill If there are additional fills this column displays the average price with the number of shares To view the individual fills double click on the order and an Order Details window will open displaying the fill events at the bottom Sorting by Column Click on a column name to sort by that column click again to reverse the sort order Press Shift and click on a second column to perform a secondary more detailed sort within the primary sort For instance if you wanted to see all the Open Buy orders you could do a primary sort on Status and a secondary sort on Action and the Open Buy orders would be grouped together Order Status automatically updates when orders are executed either via StreetSmart Pro or other Schwab channels 230 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Account Detail 00000000 File view Settings Alerts Order Status Order Status Saved Orders Alerts Balances Positions Transactions Open YIBAB Opt Buy to Ope NOTE Short Sell Exempt orders
503. ymbols or Quantities 3 If you select Use for Symbol Load enter the full stock symbol in the fields at the bottom of the window EXAMPLE If you enter WXYZ in the 7 field when you are in the Trading window and press 7 in your number pad WXYZ will load in the Trading window 4 If you select Use for Quantity you can set up different quantities depending on whether you re in the Stocks or Options tab Select the type of security from the drop down list and enter the quantity you wish to assign to each key in the fields at the bottom of the window 5 Another alternative when using the number pad keys for quantities is to Aggregate Quantity Increments EXAMPLE If you have Number Pad Key 1 set to 100 and Number Pad Key 2 set to 500 you could set the share size to 700 by pressing 1 and then 2 To reduce by the quantity assigned press Ctrl the Number Pad Key assignment by which you wish to reduce your quantity Press the divide symbol on the number pad to set the quantity back to zero 6 Click OK to save your changes Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 79 StreetSmart Pro User Manual Hot Keys gt Symbol Aliases Symbol Aliases can be used to assign letters or a combination of letters to certain stocks to load them into the Trading window more quickly For example in the figure to the right AMZN s alias is AZ You would type in AZ into the Trading window and p
504. you to view Built In or User queries Once you have opened the maximum number of Stock Screeners 10 the icon will become grayed out 344 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Stock Screener TIP Built In Queries The Stock Screener feature provides many Built In Queries that you might find useful They may not be deleted but can be edited for use as a starting point for your own User Queries Go to Settings gt Queries and click on the Built In query you wish to use Then click on View to edit and save your query with a new name Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 345 StreetSmart Pro User Manual Creating Stock Screener Queries To create a new query click User Queries gt New Query To edit an existing query clicking on User Queries gt Edit Query TIPS e Going to User Queries gt Edit Query when you are currently viewing a Built In query you can see how the query is constructed This is an excellent method of learning to use the Stock Screener e When editing a Built In query you must rename it in the Query Name field Edit Query Query Name Refresh Penod Never gt Primary Filter Required Fromthe Current Price v List Select the Top 20 Values m Secondary Filters Optional Available Filters Selected Filters 52 Week High Select stocks whose Description Cancel PRIMARY
505. your account Your statements and confirmations are the official records of your account 290 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Transactions TRANSACTIONS TAB The Transactions tab displays transactions for the current day as well as transactions made within the last 90 days The Transactions view page is read only so the data can not be manipulated but can be exported for use with other programs such as MS Excel You can view e Trade executions e Deposits e Withdrawals e Trade Away and Prime Broker transactions e Transfers between your brokerage and a bank deposit account NOTE Transaction History information is not available in Demo mode To View Your Transaction History 1 Go to the Account Detail window and click on the Transactions tab 2 Click Transactions gt Update in the menu 3 Enter the number of days you want to view transactions for up to 90 days 4 Click OK Update Transactions Retrieve the last days of transactions 90 max L Account Detail 00000000 File View Settings Alerts Transactions Order Status Saved Orders Alerts Balances Positions Transactions Date Action Qu Symbol Description Price Amount Comm Fees 02 20 2002 Buy 1CSCO CISCO SYSTE 16 74 36 69 19 95 02 15 2002 Sell 1 000 0RET ORBITINTLC 3 13 3 103 94 19 95 Pile Es Transactions may include bank
506. yout ADDING TABS TO WINDOWS Tabs allow you to maximize screen space while still having quick access to multiple Chart Watch List and other tab enabled windows When tabs are enabled your window will look something like this 20 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Getting Started i Chart 1 Microsoft Corp Secs File Edit View Insert Settings Tabs Tools 1 Min 5 Days Daily Weekly Monthly MSFT Daily 995 days SMA 20 SMA 50 27 24 26 86 26 48 26 10 25 72 25 34 24 96 24 58 187 384 378 Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Windows that have the tab functionality will have a Tab menu in their menu bar To access the menu bar right click in the window and select Show Menu The following options will be available When checked allows you to maximize screen space while still having quick access to several windows within one window When unchecked you must open several independent windows to view multiple Charts Watch Lists etc Insert Select to add a new tab to the window Edit tab e Select to edit the current tab s settings including the name name and location e You can also edit a
507. yright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 357 StreetSmart Pro User Manual Avg Vol volume for the last year expressed as a percentage i e difference between Volume and YTD Avg Vol divided by Yesterday s Volume 10 Day SMA Simple Average of the last 10 days close values including Moving Average today If the market hasn t closed yet it uses the current price for today s close 15 Day SMA Average of the last 15 days close values including today If the market hasn t closed yet it uses the current price for today s close 20 Day SMA Average of the last 20 days close values including today If the market hasn t closed yet it uses the current price for today s close 50 Day SMA Average of the last 50 days close values including today If the market hasn t closed yet it uses the current price for today s close 60 Day SMA Average of the last 60 days close values including today If the market hasn t closed yet it uses the current price for today s close 100 Day SMA Average of the last 100 days close values including today If the market hasn t closed yet it uses the current price for today s close 120 Day SMA Average of the last 120 days close values including today If the market hasn t closed yet it uses the current price for today s close 200 Day SMA Average of the last 200 days close values including today If the market hasn t closed yet it uses the current
508. ys the type of security such as an equity or option 234 Copyright Charles Schwab amp Co Inc 2006 All rights reserved 0106 5667 Account Detail amp Alerts Right click Descriptions ss s sSSS Options Load Loads the symbol into the Trading window Symbol The quantity field is set to the Trading window default into Trading size this default may be changed or you may set the Window default to match your position size Go to the Trading window and select Settings gt General gt Orders tab to change the default quantity Recent Loads the symbol into the Recent Stories tab of the News Stories for window Symbol Stock Research Ext Launches a web browser that automatically opens the Quote for Schwab com Quotes and Research tab and provides Symbol information for your symbol Apply Alert Opens sub menu allowing you to use an alert template or to symbol create a new alert If the Order Verification preference is selected clicking here will open the Verification window before submitting the order If the Order Verification preference has been disabled the order will be automatically validated and sent to Schwab for execution If there are errors you will receive an error notice in the Messages window After editing you order you can resubmit it in the Order Entry panel of the Trading window Opens the Edit Saved SmartEx Order pop up window Removes the saved order from the window

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