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Trading Platform User Manual

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1. 4 gt Position Account The Account Manager tracks current open positions You can also check your account s real time gain and loss and buying power in the Account Manager Short sold stocks are listed with a negative minus sign and the position will also be highlighted in red In the Position tab of the AccountManager there are several columns similar to those within the TradeManager e Symbol indicates the stock you have a position in e Acno indicates the account that the position is in e Position indicates the number of shares you have bought or sold short The minus sign in front of this number indicates a short position 13 e Avgcost indicates your average cost basis If you bought a stock twice it will take the average price of the two buys e Realize Indicates how much money you have actually made or lost trading that stock e Unrealize tracks your gain or loss in real time on any open positions So if you bought and sold CSCO for a 150 profit it would be in Realize If you bought it again later in the day the Realize number would remain unchanged while the Unrealize would fluctuate with your new position e The Bid and Ask columns show the current Bid and Ask for the stock This is commonly called the inside market The Account Tab in your AccountManager tracks your trading account s total profit and loss as well as buying power and number of total trad
2. The Level2Ticker is more detailed It must also be customized Right click in the window to add a list of stocks The Level2Ticker will list any change in the bid or offer for each individual market maker or ECN This will constantly be changing for more active stocks especially in the early mornings and late afternoons 3 15 Trade Ticker The Trade Ticker must be configured It scrolls with price updates on stocks you specify 3 16 Market Search This feature is currently under construction 4 The Configuration Menu Default Orders Default Order Global is a very important feature This feature specifies the content of your populated fields within the order entry tool before customization of your order Starting in the top left corner Share is the number of shares e Route is the avenue the order will take Currently any route may be chosen except ARCA e AON ANY set at ANY The only time you can place AON all or none orders is SelectNet orders to market makers 14 e TimeinForce TIF is the amount of time your order will remain in the market before it is automatically cancelled The numbers represent minutes Remember SOES orders will automatically cancel after 90 seconds e Account account where the trade will be placed If you have checked EnableSendOrderConfirm than whenever you click to send an order you will receive a pop up message asking you Send Order You will then click yes or no You c
3. e Configuration of your network set up this details the TCP IP addresses for certain application servers These addresses are pre configured and should there be an update Trader Support will notify you when needed e Configuration of Hot Keys which allow you to place orders using the keyboard instead of the mouse Manager Menu lists options utilized by Trader Support and the Back Office These features are not available for customer use Logon Menu enables the user to Logon and Logoff the network Additionally you can change your password whenever you are logged on To Logon to the Trading Platform please select Logon under the Logon Menu option You will be prompted to enter your User ID and Password Enter the appropriate USERID and PASSWORD and then click on Logon After a momentary delay a box will appear letting you know you have successfully logged on Select ok and you will be logged onto our system Following a successful logon your default screen will open in a prearranged format The initial default screen is a basic example of a common layout Feel free to customize your layout to meet your trading needs Window outlines and basic customization will be outlined further into this manual Help Menu is an integrated indexed reference manual that complements this User Manual 3 Trader Menu Introduction and Essentials Module 3 contains a list of all the various windows available to place on your
4. These trades are not real Commission fees do not apply First Log off Click on Logon in the menu bar Select Logout It will ask you if you are sure and click yes Once you have logged off to exit either click on the X in the far upper right hand corner or select Exit under the File Menu options Most windows within the RF Trader can be configured to your personal preferences By right clicking in the window you would like to change a configuration box will pop up This will allow you to make adjustments to that window The trading software does not calculate the number or amount of your commissions Commissions are not determined until the end of each trading day If you accidentally place a trade at a bad price contact Trader Support as soon as possible In most situations Trader Support has only 30 minutes to try and bust a bad trade The sooner you call the more likely something can be done Call Trader Support AS SOON as something happens A bad price is one that is definitely outside the current market for the stock You may use the keyboard for shortcuts in adjusting prices and share amounts The up and down arrows will allow you to quickly adjust the price up or down in 1 256ths increments The right and left arrow keys adjust the share amount up or down in 100 lot increments Here are some general recommendations for your computer platform Processor Pentium Il 400mhz RAM 64 MB Modem
5. send the order Extended hours trading is available using SelectNet You can send SelectNet orders starting at 9 00 a m EST until 6 30 p m EST In extended hours trading ECNs are usually the only market participants that will accept orders through SelectNet Market makers and ECNs receive orders differently e Market makers are obligated to accept SelectNet preference orders Market makers have 10 seconds to decide whether or not to fill your order so you cannot cancel an order sent to a market maker until 10 seconds have expired You may send AON all or none orders to market makers Market makers do not show actual volume numbers on the NASDAQ Level Il For example even though they may post to buy 1000 shares they may actually buy 50 000 shares For example they may show they want to sell 500 shares but if you attempt to buy 2 000 shares from them they may fill your entire order Similarly they may decline your order 18 even though they remained on the screen after you sent an order to them This is referred to as backing away Market makers are not supposed to back away but when they get hit with many orders from different traders at the same time they can only accept those that they have shares to fill e _ECNs ECN share size on the Level ll is an accurate reflection of their intentions If INCA Instinet is displaying 37 it means there are Instinet traders that want to trade 3 700 shares at the corresponding price SOES
6. 15 5 minute periods Here you can adjust the time length of your moving average and you can select the type of moving average simple exponential or weighted if you don t know best not to ask or buy a book about technical analysis if you are really intrigued If there is a check mark in the box next to MovingAvg then the moving average will appear in the chart To deselect click once on the box so that the check mark disappears e Instead of moving averages you could select Bollinger Bands or Envelopes Finally near the bottom you can adjust other colors within your chart You can see that the charting capabilities are extremely flexible easily allowing you to customize your chart to your individual preferences whether you are technically savvy more a swing trader or extremely active Here is a sample of what you can do You can left click once on a part of your chart to see the exact high low open and closing price for the time period you clicked on It will also list the exact time of day of the information you are looking at and the volume for that time period 3 3 Time Sale im DELL ioj x 191546 1 16 46 43 x 191546 1 16 46 30 191546 1 16 46 23 20 1 16 46 21 191546 1 16 46 20 19 1506 3 16 43 49 20 7T33 16 43 15 191546 1 16 41 04 191346 5 16 39 08 19 3 4 5 16 39 08 19 78 2 16 39 06 19 3 4 4 16 39 06 191546 16 16 39 06 20 10 15 38 46 191506 10 16 38 33 m The Time and Sales called TimeSale in the Tr
7. 56k but recommend ISDN or DSL Faster is obviously better A slower processor down to 200mhz will work although during real fast markets your computer could lock The Exchange Symbol ID is a letter located above the dark blue button on your Trading window This will identify the Exchange of the stock you are trading Below the ID are the routes through which these types of securities can be traded Q NASDAQ SOES SELECTNET ISLD AUTO ARCA N NYSE New York Stock Exchange DOT ISLD A AMEX American Stock Exchange DOT ISLD U NASDAQ OTCBB Over the Counter Bulletin Board You must call Trader Support to place an order for these stocks or route limit orders through GNET 26 S NASDAQ Small Cap SELECTNET Island AUTO SOES ARCA The Securities and Exchange Commission charges a fee on the sale of all securities This fee is 0 00003 times the revenue of any sale It is added to the other column on your trade confirmation page within Trader Resources It is very important that you keep us posted with your most current email addresses physical address and phone numbers If any of these vital information points change please contact us immediately so that we may continue providing you with the best customer service possible 8 Margin 101 In line with our continuing focus on providing you with the tools you require to succeed we would like to offer the following margin reference worksheet The following margin referenc
8. active biggest percentage gainers and losers for the New York Stock Exchange NYSE The TopList will automatically update with current market changes You can left click once on a symbol and it will automatically update your Trading window By right clicking any where in the TopList window you can customize the background and font colors You can expand or narrow columns and adjust the size of this window to meet your trading needs 3 7 Mailbox The MailBox feature allows you to quickly send messages to other traders or to Trader Support This is an extremely beneficial feature for quick communications When you receive a message New Mail will appear at the Top Bar of the RF Trader This means you should check your mailbox To turn off the New Mail message click on flag To send a message type in the person s name or ID then type your message and click send 3 8 Market Minder fl MarketMinder SYM CMT Gaver mo Joas do osr voL Mon Low d ora 2616 69 2618 03 2251 71 2254 10945 3 4 11014 17 10581 49 1063 416 1x10 56 41 8 31546 41AtE 123 32 500x10 71 1556 113 32 1135 20 93x15 51462 201 8 17 145 1714 315 32 191x5 3135 312 3146 31H 25 32 3x 40 566 3 4 7M6 7M6 E m The Market Minder feature allows you to track a list of your favorite stocks You can track up to 60 different symbols e The first column in blue is the symbol column To enter a new symbol left click once on on
9. enter You will need to link the EcnBook to a Trading window in order for it to function Once you have done so any symbol you type in the Trading window will appear in the EcnBook The Island Book will have two columns of prices The left side represents bids these are buy orders The right side contains asks these are sell orders Each column and price will have a corresponding size which is the exact number of shares at each price no zeroes have been left off The prices you see can be displayed in increments as small as 1 256ths of a share The quotes you see in the EcnBook Island Book are the ISB quotes you can place in your trading window The Island Book quotes are received directly from Island separate from quotes coming from NASDAQ The top 40 bids and offers will be displayed if this many are available pending liquidity All Island bids and offers are reflected in the Island ECN book NASDAQ Level II only displays the best bid and best offer in the Island book under the MMID acronym ISLD Tip By right clicking in the Trading window and clicking Show ISB you can include Island quotes exactly like the ones in the ECN book integrated on the Level II screen for easy viewing NASDAQ Level II only displays orders of 100 shares or more and in increments of 100 shares since the last 2 zeroes are dropped off So if you enter an order for less than 100 shares it may only appear in the Island book and not on t
10. his her day trading buying power at any point during the trading day When a client engages in daytrading the margin requirement will be calculated based upon the opening transaction the buy for opening a long position or the sale when opening a short position When a trader engages in daytrading with 25 000 of maintenance excess and makes the following trades they will generate a day trading call as follows Beginning Equity 25000 Maintenance Remaining Action Quantity Security Price Total Requirement Equity Call Buy 500 XYZ 100 50 000 25 000 0 0 Sell 500 XYZ 90 45 000 25 000 25 000 0 Buy 1000 ABC 50 50 000 25 000 0 0 Buy 100 XYZ 90 9 000 4 500 4 500 4 500 Sell 1000 ABC 50 50 000 25 000 20 500 0 Sell 100 XYZ 90 9 000 4 500 25 000 0 In this day trading scenario the trader opened two consecutive positions which left them with negative maintenance equity of 4 500 and a day trading call for the same amount Please note that the opening position of XYZ required 25 000 15 the total cost of the position and the subsequent closing transaction added the same amount back to the maintenance excess It is important to note that any profit realized will not increase the intraday day trading buying power as per NASD Rule 2520 Should you find yourself in a Day Trading call you will be required to satisfy the call within 3 days by transferring securities valued at twice that of the call or depositing cash equal to the size of the call In either
11. price and order route will automatically update Then all you need to do is specify the share size before sending the order You can use the keyboard to adjust prices You can use the up down arrows on your keyboard to raise lower your price 1 256ths of a point Canceling Orders Three ways to Cancel 1 Click CXL in your Trading window To cancel an order you can click CXL in your Trading window If you have switched to a different stock in the meantime this button will not work 2 Use the Trade Manager Window Your open orders will be listed in the Order tab Left click once in the row of the order you wish to cancel The cancel window will pop up Click CancelOne to cancel the specific order you clicked on Click CancelAIl to cancel all the orders you have working Click CancelBySymbol to cancel all orders for a symbol you specify in the field box Using the Trade Manager is perhaps the safest way to cancel your orders This is because you can see exactly what you are canceling 3 Hot Keys You may also set up a Hot Key to cancel one order or to cancel all your open orders This is a quick way to cancel orders Remember When placing all orders or canceling an order BE SURE to keep an eye on the Order tab in your Trade Manager window An order status of canceling does not signify a cancellation It signifies a pending cancellation You are not out of an order until you receive the status as cancelled Different orders w
12. prices will create crossed markets during extended hours trading A crossed market is when a bid is higher than an offer or vice versa You will see this situation in the pre market During extended hours trading ECN quotes need to be referenced along with Time and Sales in order to get a clear picture of a security s current quote The Island Book is a useful extended hours indicator You can reference quotes of the major indexes and futures using the Trading Platform You can list these in your market minder or watch indexes in charts Here is a list of some popular symbols BPZ S amp P 500 futures The last figure is a zero for the year 2000 In 2001 this would be a one The Z represents the contract month H is March M is June U is September and Z is December So in July of 2001 the June contract will have expired and the September contract will be trading thus you would enter SPU1 Other popular futures are the Dow Futures BUZO and the NASDAQ futures NDZO NDU The Dow Jones Industrial Average These are 30 of the biggest companies in America including Intel Microsoft General Electric Coca Cola Exxon Mobil and Wal Mart GOMPX The NASDAQ Composite INX This is the S amp P 500 cash index This index tracks 500 of the biggest companies in America The S amp P 500 futures basically mimic this index 25 If you are in training mode you are receiving real time quote feeds and you can place paper trades
13. red which will lock out your Trading Window If you clicked on buy nothing would happen The Order Entry portion of the Trading Window is located in the midsection of the Trading Window This section will explain each of this different buttons and boxes in this portion of the Trading window SHRT The button you press to send a Short Sell order This is a sell order to open a position SELL This is the button to press when you want to sell a stock you bought earlier SHARE SIZE Box Use this to load the amount of shares you wish to trade You can type in the number or press the arrow keys just to the right of the box to adjust the amount up or down in 100 share increments PREFERENCE Box Below the Share Size Box is the Preference Box This will be utilized for Selectnet orders only The 4 letter symbol of the market maker or ECN who you wish to selectnet preference will be displayed here ORDER ROUTE pull down menu This is the method you select to send an order The types of orders that are available are the following SOESL SOES Limit Order SOESM SOES Market Order SNET SelectNet ISLD Island ECN direct ISLDN Island ECN do not display nonsubscriber DOTL NYSE or AMEX Limit Order DOTM NYSE or AMEX Market Order DOTS NYSE or AMEX Stop Order AUTOL Smart Order Limit Order for NASDAQ AUTOM Smart Order Market Order for NASDAQ AUTOS Smart Order Stop Order for NASDAQ ARCA Archipelago ECN direct REDI Redi Boo
14. short a stock or use SOES on the stock Type in a symbol and click load NASDAQ sets the SOES Tier Size for each NASDAQ stock Short OK will indicate whether or not you can short the stock The maximum number of shares available for shorting is displayed If you want to short a stock that has insufficient shares available contact Trader Support They may be able to find additional shares Margin OK is a general indication of whether or not it is OK to use margin to purchase the stock you have selected Marginable stocks are those stocks that currently trade over 5 per share You will notice that the buy and sell orders in your TradeManager are differentiated by color also You can change these colors by right clicking anywhere within the TradeManager Window as long as you are in the Order or Trade tab Some prefer a darkened background color while others like to set buy orders in a shade of green and sell orders in a shade of red You can also cancel orders from the Order tab You can left click once in the row of the order which you would like to cancel A box will appear on your screen You may cancel all your current open orders at once by clicking CancelAll You may cancel just the specific order you highlighted by clicking CancelOne or you can cancel all orders for one particular stock by clicking CancelBySymbol 3 12 Account Manager I Free nU ETE Pale x heno tpe Renee Umenie openupo Bwpomer Oven Teka
15. the last price traded Most small cap stocks are priced at the low of the day and some OTC BB and pink sheet stocks penny stocks are marked to market less frequently than daily Symbol CUSIP Account Type Trade Position 28 Options are displayed at their last trading price unfortunately thinly traded contracts may not have been traded for days or even weeks Always check a current quote to get an idea of a contract s true value Margin Calls Day trading uses margin to leverage a portfolio in order to control a larger portion of the market however in doing so a trader can find themselves in a call There are three main types of calls a Trader is likely to see Q Day trading call Q Reg T or Fed call Q Maintenance call or Special Maintenance call The following is an explanation of each type of call an example of how it is generated and what a trader can do to get out of the call Most importantly you will learn how to avoid the call When an account receives a margin call the customer is sent an email describing the type of call and manner in which it was generated We may also attempt to contact a call recipient by telephone For these reasons it is very important to keep account contact information accurate and current Accounts have been frozen and positions have been liquidated due to disconnected phone numbers and inactive or unchecked email accounts Day trading call A day trading call occurs when a trader exceeds
16. to DOT orders you may also send Island orders Your Island order is independent of the NYSE market and trading You will notice that there are not many Island orders on NYSE stocks and thus it is not as easy to get your trade executed Remember when trading listed stocks you can only enter DOTM DOTL DOTS or ISLD orders Confirmations and cancellations using DOT may take longer than NASDAQ since NYSE orders are sent to an archaic trading floor You cannot trade DOT after normal market hours except through ISLD ISLD liquidity for listed securities is usually low Order execution on the AMEX is similar to the NYSE You will see several quotations on the screen but the AMEX quote is dominant Use DOT to send your orders They will be routed electronically to the AMEX trading floor The AMEX hours are the same as the NYSE 9 30 to 4 00 EST There is no after hours trading of AMEX securities except through ISLD To identify an AMEX security look for an A as the Exchange Symbol ID For more information on understanding AMEX stocks please read the NYSE section To identify a NASDAQ stock look for a Q as the Exchange Symbol ID NASDAQ trading is decentralized there is not a centralized trading floor You route your orders directly to other traders or market makers SOES AUTO Selectnet Island and other ECNs can be used for trading NASDAQ stocks e You can trade directly with market makers and ECNs using SelectNet e Trade with market ma
17. 110 000 100 000 2 When multiple calls are generated on a single account on the same day the largest call amount is required and will settle all the lesser calls on the same account Like the day trading call the trader is required to satisfy the call within 3 days by transferring securities valued at twice that of the call or depositing cash equal to the size of the call In either case the additional deposits may be withdrawn after 24 hours This call is a Fed call and if not met will result in a 90day restriction being placed on the account If a restriction is taken the position that created the Reg T call must be liquidated If any call is generated on a restricted account and is not met the following business day Penson will freeze the account for 90 days Frozen accounts cannot open new positions Maintenance Call Unlike the previous calls a maintenance call occurs when a trader s margin equity falls below the maintenance requirement The maintenance requirement for most stocks is 2596 however low priced stocks valued below 5 per share have a 10096 requirement There are two separate maintenance levels in an account The first deals with fully marginable securities These securities require a 25 maintenance requirement that is held as collateral for the account The second set is special maintenance securities These predominantly Internet stocks have a 5096 maintenance requirement To determine the level of maintenance equit
18. AUTO orders in extended hours trading Especially DO NOT place AUTO stop orders in extended hours If you get a rejection when sending an AUTO order it is likely that you are attempting to do one of these things AUTOM Market An AUTOM order does not specify a price Your order states that it wants the next available price CANCELING Auto Orders is not as simple as SOES or Island cancels The computer must back track to find your order before it can cancel therefore AUTO cancels may take longer ECNs are Electronic Communication Networks ECNs are designated on your Level II screen with a symbol after their 4 letter acronym Here is a list of ECNs ISLD ARCA BRUT INCA BTRD REDI STRK ATTN NTRD To preference ECNs on your trading platform you will need to use SelectNet For example if you want to trade with INCA you will need to SelectNet Preference INCA The Trading Platform currently has direct connections to Island and ARCA You can place your own bids and offers in the market place using the Island option in the order entry pull down menu ECN share size is an actual reflection ECNs match orders So any size listed by an ECN is an actual order Market makers are banks and other financial institutions They are responsible for making markets in NASDAQ stocks They are listed in the NASDAQ Level II by a 4 letter acronym in the MMID column You can trade with market makers by using SOES or Selectnet Market maker sha
19. IC the Pacific Exchange PACI the Boston Exchange BOST the Cincinnati Exchange CINC and the NASDAQ NASD The NYSE quote is dominant when trading listed securities NYSE security transactions go to the NYSE not the regional exchanges You can highlight the NYSE so you can easily identify their prices Right click in the quotation area In the window that pops up enter NYSE in the BrokerToMonitor box and then click ok Now you can easily see the NYSE prices A DOTL order needs to specify a price before sending The L is for limit order A DOTM order is a market order The Exchange will give you the next available price A DOTS order is a stop order If the price drops and your stop order is triggered then the NYSE will sell the stock for you All NYSE stop orders are sent as market stop orders Meaning once the stock hits your price the Exchange will get the next available price for you 16 The NYSE is the oldest Stock Exchange in the United States and technologically they are years behind the NASDAQ When sending orders and cancel attempts to the NYSE it is important to understand that it may take significantly longer to report than it would take for a NASDAQ order The NYSE is open from 9 30 a m EST New York time until 4 00 p m EST There is no after hours trading for NYSE traded securities unless you send an Island order The NYSE is allowing the Island network to trade many of its stocks So in addition
20. SE and AMEX determine the inside bid and offer ask the inside can be found within the trading window s task bar This is the best possible price to immediately attempt to sell or buy shares of a particular stock Many stocks will be listed on multiple exchanges but the New York and American are the exchanges that our trading platform executes against NASDAQ stocks display Level II quotations which show current bids and offers of all the major market makers and ECNs Electronic Communication Networks To identify an ECN look for the sign after their 4 letter acronym Each of the Exchanges requires different methods of trade execution The section titled Trading Stocks in this manual will explain in detail the actual trading process and methods available to execute your trades To identify the Exchange of the stock you are trading you need to look at the letter that is listed above the dark blue button in your Trading Window You will see one of the following letters Q NASDAQ SOES SELECTNET ISLD AUTO N NYSE New York Stock Exchange DOT ISLD A AMEX American Stock Exchange DOT ISLD U NASDAQ OTCBB Over the Counter Bulletin Board You must call Trader Support to place an order for these stocks S NASDAQ Small Cap SELECTNET Island AUTO SOES may work depending on whether or not the security has registered SOES participants R next to a NASDAQ symbol indicates a restricted stock For more about each of these Exch
21. Trading Platform Trader DEMO18 File Trader Config Manager Logon Help fl TradeManager 2251 71 10945 3 4 A 10581 49 416 315 6 123 32 500 x 10 113 52 20 93x15 1716 315 32 191x5 31M6 3x40 7M6 DELL T H201 8 L171 16 PCL17 1 2 27 16 Vol 51462300 Q 19358 19546 20 201 2 S72 1914 EE is 19 27 Pid 207 58 380 181316 41 21172 100 16 38 46 18154 16 38 33 Im 181346 1100 2214 100 T User Manual l 2 3 oo 109 tA Table of Contents Introduction Entering the Trading Platform The Trader Menu 3 Trading 3 2 Chart 3 3 Time Sale 3 4 ECN Book 3 5 News 3 6 Top List 3 7 Mailbox 3 8 Market Minder 3 9 Option View 3 10 Position Manager 3 11 Trade Manager 3 12 Account Manager 3 13 Level 1 Ticker 3 14 Level 2 Ticker 3 15 Trade Ticker 3 16 Market Search The Configuration Menu Trading Stocks Orders Tips amp Extras Margin 101 Introduction The following User Manual is intended to provide the first time user a comprehensive overview of the functionality regarding our system The manual will inform the User and guide them through several topics ranging from opening the application to transacting trades Please review this manual prior to trading on the platform so that you can take advantage of the full functionality of our system The trading platform itself is an extremely pow
22. ader pull down menu options lists every trade that occurs for a particular stock To get your Time and Sales window running you will need to link the window to a Trading window Once you have a trading window open open a TimeSale window Then link the trading window of your choice with the TimeSale window Every time you type in a new symbol the TimeSale Window will automatically adjust The TimeSale window will display the price of the last trade the number of shares that were traded at that price and finally the exact time of day that the trade took place You will need to multiply the number of shares by 100 to get the correct number the last 2 zeroes have been dropped off Some market makers print late trades If you see a trade run by on the TimeSale that is away from current prices it is most likely that a market maker is late in reporting a trade that occurred earlier in the day or somebody erred in typing in a limit price 3 4 ECN Book 3312 50 35239 2 100 3812 1186 401 2 100 Within the current trading platform the EcnBook is the Island ECN Book An ECN is an Electronic Communication Network that matches individual buyers with sellers This allows traders to display their limit orders on the Level 2 display without representation by a market maker Traders use Island to place their limit orders in the market for execution against other Island traders The EcnBook will show you the Island Book for any stock symbol you
23. an reset all the info in your trading window to the defaults you have specified either by typing in a symbol and pressing enter or clicking DEF in your trading window It is also possible to set defaults for individual trading windows Right click in the bottom section of the trading window you wish to set up In the window that pops up click on DefaultOrder The window that pops up will allow you to set defaults for that specific trading window The Network Window is the technical pathways for connecting to the trading networks and markets You should not interfere with these numbers If a change is needed you will be notified by Trader Support This is a list of the major ECNs You can also identify ECNs by looking for the sign in their MMID acronym ECNs will only be listed in NASDAQ quotes ISB Island book quotes can be added to your NYSE or AMEX quotes A quick way to send orders is by using the Hot Keys Hot Keys are keys you can set up on your keyboard to quickly send default orders that you otherwise would use the order entry screen to place You may customize your hot keys whichever way you choose You can use any of the letters or you can use the function keys F1 to F12 The function keys can be used on their own or with either the Shift key or Ctrl key in combination Number or letter keys will require a Shift key or Ctrl key combination There are many possible hot keys that can increase the efficiency of order entry Pl
24. anges check the Trading Stocks section You may want to change the colors in the bottom portion You can do this by right clicking in the quotation area A configuration box will pop up Click on Level2Color to make adjustments The same steps can be used to adjust the font If you make the font larger you may want to adjust the width of the columns by grabbing the little icon that appears when you hover over the ends of the column listings 3 2 Chart DELL 1 Minute Chart To open a chart click on Chart in the Trader pull down menu A box will appear As long as the top bar is blue you just need to type a stock symbol and then press enter Nothing will happen if you have entered an invalid symbol A default chart will appear You can then move the chart and expand or contract it to fit in a position on your screen You can open multiple charts To adjust the chart simply right click anywhere within the chart This will open up the ChartConfig window Here is where you can adjust colors time frames technical indicators and all the other functions of this versatile charting window After any changes you make within this ChartConfig window you will need to click on apply and then exit so that the chart will reflect your changes There are several options for personalizing your chart e The pull down menu titled chart is the time frame you want to look at A 1 minute chart means you have set the perio
25. best to maximize it by clicking on the Maximize button found on the right hand side of the Title Bar The Title Bar Once you have maximized the screen you should see a Title Bar at the top of the screen which will list important information that you will need to know First you will see the name of the application on the left side of the Title Bar followed by the account that you used to log on to the trading platform Next to the account is the version number of the software that you have downloaded Additionally once you have logged in you will see the ticket and share amounts detailed The Ticket number indicates the number of trades you have placed while the Share number indicates the number of shares you have traded today If you receive mail from the Mail Box feature you will get a message in the Title Bar indicating new mail The Menu Bar Below the Title Bar are the menu options for the application which will allow you to choose the function that you would like to perform The image below shows the Menu Bar File Menu allows you to Save and Open saved screen layouts Print the screen or individual windows Exit the application The File Menu allows you to save screen layouts and open screen layouts which have previously been saved By selecting Open Screen a Window will open which will allow you to select the screen of your choice Once you have selected the screen you will have the ability to make the changes you would like
26. case the additional deposits may be withdrawn after 24 hours 29 Caution Margin regulations have established a Strike system for day trading calls that are not met The account is accessed one strike for each call not met The first day trading strike remains on the account for 1 year The second strike restricts the account for 90 business days Restricted accounts function normally except that If a restricted account receives another call daytrading or Regulation T that call must be met the following business day not within the typical 3 business days A restricted account that does not meet a daytrading or Reg T call is frozen for 90 days A frozen account cannot open new positions until the 90 day freeze ends Once the 90 day freeze is over regular account activity is resumed Reg T or Fed call Regulation T requires initial margin of 50 for opening buys and 150 for opening sales however 100 of the 150 short requirement is generated from the proceeds of the short sale Le a short sale of 100 000 of ABC will require a deposit of 150 000 100 000 of this amount can come from the short sale proceeds Regulation T has no margin requirements for day traders per se Regulation T requires the calculation of the position s at the end of the day If the trader was to begin the day with 100 000 in overnight buying power and purchased a position for 110 000 and held the position overnight he would also incur a Reg T call totaling 5 000
27. d of your chart at 1 minute So each bar or line on your chart will represent 1 minute of activity A 15 minute chart means each bar or line represents 15 minutes of activity And a 1 Day chart means each line or bar represents one day of activity So a 1 Day chart will show you a specified number of days which you specify in Size e The Size is the number of these periods you want to appear in your chart You can manually type this in or adjust it with the arrows directly to the right The maximum number of periods you can display is 400 In the pull down menu if you select Day you will see a chart of activity just for today s trading activity Tip For example if you have chart set at 1 day and size set at 200 you will get a chart of the last 200 days If the chart is set at 15 min and size at 200 you will get the last 200 15 minute periods e There are 3 different types of charts commonly used and you can select them from the Type pull down menu Tip A Line Chart connects the dots from one period to the next A bar chart shows the highest price lowest price and opening and closing price for each period The candlestick chart basically fills in the bar chart with colors red indicates downward movement in prices and green indicates upward movement e To change colors click once on the color box A new window will open giving you a range of colors to choose from Whatever colors you chose be sure there is enough contra
28. e of the rows Then type in a symbol and press enter Then by right clicking once on a symbol you can update your Trading window The arrow in the next column indicates whether the ast tick read the most recent bid is up or down The next column is the opening price The bid and ask columns list the current highest bid and ask prices Last is the most recent price the stock traded at Change is whether or not the stock is up or down on the day and by how many points Volume is a running total of the actual volume for today The High and Low columns represent the highest and lowest prices reached during today s trading Size indicates the number of shares on the current bid and offer this is not always reliable 11 You can also track indexes in the MarketMinder The most recent price is actually displayed in the Ask column By right clicking anywhere within the market minder open field you will pull up the ConfigMarketView window Here you can update colors and add alerts The alert will update in color when your stock reaches the price you entered The Flash color will flash once in the last column of a stock that changes in price Tip You can rearrange the orders of the rows Left click once at the top of the column you want to move Then left click again A little box will appear Now click hold move and drop the column where you want it To remove any column place your mouse at the top of the column and hover ov
29. e worksheet has been divided into three sections e The specific call type e How to avoid generating the call e How to satisfy a call Margin is the idea of buying securities on credit this credit is calculated by the amount of equity within your account When you engage in day trading you will use your equity coupled with margin to maximize your buying power Your daily buying power is based on the previous business day s closing position values For example margin equity and closing position values for Monday the 1 will be used to calculate the buying power available for use Tuesday the 2 We advise you to log into Trader Resources within our website each morning prior to the day s trading You are responsible for knowing your positions and purchasing limitations Day trading software is not perfect The areas to pay special attention to are the following a Buying Power MAINTENANCE REQUIREMENT Account Number Symbol CUSIP Position Closing Price Market Value Maint Req Maint Excess DAYTRADING BUYING POWER C Your buying power is divided into two separate calculations day trading buying power and overnight buying power Your daytrading buying power value will be displayed at the bottom of the above columns REG T BUYING POWER VERNIGHT BUYING POWER C This figure is a product of your margin equity A less maintenance requirement B times 2 A B X 2 This is all the money you have available for the day Intrada
30. ease practice your hot keys extensively in training mode before placing live orders with them We take no responsibility for misplaced orders through the use of hot keys NOTES e FOR HOT KEYS BID and ASK mean THE NASDAQ LEVEL ONE INSIDE MARKET e For Buy Sell Isld Plus or Minus Plus means 1 256 above the bid and the best ISB Minus means 1 256 below the ask and the best ISB 5 Trading Stocks Types of Orders Market No price is specified You specify a number of shares and then say buy or sell at the next available price In a fast moving market it is common to fill at a price significantly away from the market at the time the order was placed Limit You specify a number of shares and a price The order states to fill only at this price or better 15 Stop Stops are safety parachutes If you bought a stock at 51 you could enter a stop order to sell if the stock reached 47 This would limit your decline These are helpful in protecting gains and limiting losses You can use stop orders on the AMEX and NYSE NASDAQ stop orders use AUTO AUTO does not guarantee an execution Stop orders will not work in after hours they are only active during normal market hours There are 3 different major Exchanges in the United States e New York Stock Exchange NYSE e NASDAQ e American Stock Exchange AMEX Trades execute differently on these Exchanges Quotes disseminate differently also NASDAQ releases Level II quotes Level II s
31. er the direction arrow to the right of the column you want to remove and in between the next column over Click once and hold and then shrink the column line until it is no longer visible You can use this to adjust the width of the columns as well 3 9 Option View This is a window for option quotations To view the quotes type in the underlying stock symbol and click Get Option Option View displays quotations in accordance with your customized settings 3 10 Position Manager The Position Monitor will track changes in stocks that you currently have an open position in Any time that the bid or offer changes for the stock you have a position in the Position Monitor will reflect that change The Position Monitor tells you whether the change in the stock was up or down You may also color code this By right clicking you can customize the colors in your Position Monitor This window scrolls with the most recent updates at the bottom The number of shares you are long or short is shown in the first column as a reminder 3 11 Trade Manager TradeManager gt N Order ATrade ALog A Symbol The Trade Manager tracks and records all the orders you currently have open and all the trades and activity recorded throughout the day Once you have placed a trade the TradeManager becomes your focal point There are 4 tabs in the TradeManager Order Trade Log and Symbol Clicking on a tab provides specific information on
32. erful trading tool that enables users instant access to the latest stock market quotations from all market makers such as Goldman Sachs Morgan Stanley as well as ECNS including the Island ECN and Instinet The stock exchanges that are available to trade on are the National Association of Securities Dealers Automated Quotation System NASDAQ New York Stock Exchange NYSE and American Stock Exchange AMEX The quotes that this system bases it s trades upon are received via a direct connection originating from the National Association of Securities Dealers Automated Quotation System NASDAQ and New York Stock Exchange and American Stock Exchange Quotes are disseminated via a S amp P Commstock feed from their respective markets From this data the trading platform creates the information that you need to make your decisions Briefly you can open multiple charts track lists of your favorite stocks see level Il and ECN market depth track real time gainers and most actives on the NYSE and the NASDAQ The following section will walk you through some of the basic functions regarding the system 1 Entering the Trading Platform Opening the Application Following the download process from Trader Resources you should find the trading platform listed in the Start Menu for Microsoft Windows Please select the Trading Platform from the list so the application will launch itself onto your desktop The application will open in a minimized form it is
33. es placed If you have multiple accounts they would be listed here e Acno is the account for that row e Type indicates the type of account you have open Type 1 is a cash account Type 2 is a margin account For more information on margin visit the margin worksheet on the CD or on the Trader Resources section of the web site e Buying Power Funds available for purchasing new securities at the open of the trading day Realize and Unrealize which is the profit and loss total for your account Any positions you have closed will reflect under Realize Open positions will be tracked in the Unrealize column e OpenBuypower Buying power still available for opening new positions e OverNight amount of buying power available to purchase securities to hold overnight Ticket the number of total trades you have made This total will include every buy and every sell including partial fills This is not always an actual reflection of your commission able trades e Share the total number of shares you have traded in that account today e Status and Flag are unused fields 3 13 Level 1 Ticker The Level Ticker will update changes in the bid or offer for stocks you wish to track The Level Ticker behaves the same as the Position Monitor You must customize this window in order for it to function Right click in the window to add a list of stocks you wish to monitor You can set up to 9 different sets of stocks to track 3 14 Level 2 Ticker
34. he Level Il NASDAQ Level II currently shows price increments of 1 1 6 of a point or higher note stocks under 10 may show fractions of 1 32 For Islands inside market displayed on Level 2 orders sent at small fractions will be rounded to the appropriate price buy orders are rounded down and sell orders are rounded up displayable on level 2 The Island book will show orders of all sizes and all prices If you placed an order to buy 130 shares at 28 1 32 you would see your exact order in the Island book however on the NASDAQ Level II quote the order would be displayed as 100 shares at a price of 28 3 5 News The News feed will update as this feature becomes available Itis in the process of being added 10 3 6 Top List ActiveHasd GainMasd om AOL REI NT EMC PFE NOK MOT cPa GLW JPM AMT PCS HD TXN KX CIX GPX REI Il SUT SFA TCP SCH GX EMC FMO TNL TIF TOO VSL WCG KEI I TopList M Loseiasd Activelyse Gainiyse Losenys EDE KP EIX MDG PCG SP SGR EYG CAM KG PBG ORN MO EOG CRL SEN D CPN The TopList function is a very useful and extremely detailed real time update of stocks that are active and or moving on both the NASDAQ and NYSE Exchanges There are 6 columns Starting from the left the first three are the most active biggest percentage 96 gainers and biggest percentage 96 losers on the NASDAQ Exchange The next three columns are the most
35. he market makers to see ECNs will not see this order A market maker will choose to execute a Broadcast order only if it is in their best interest to do so Only Market Makers will see your SelectNet Broadcast order SelectNet Orders General Minimum Time in Force TIF is 3 minutes Orders with a lower TIF will be rejected Once you have entered an order you can cancel it before 3 minutes are up but you cannot cancel it before 10 seconds have elapsed Market makers have 10 seconds to look at your order All SelectNet orders must be entered as Limit orders There are no SelectNet market orders SelectNet orders can be entered as AON all or none but only when sent to market makers Be very careful before sending any order If you are sending a Preference order be sure that the correct acronym is in the preference box and that the number of shares and price are correct If you leave the preference box empty you are sending a Broadcast order If the price box is also left empty then your broadcast will automatically be sent at the corresponding inside market price asking price if you click buy and bid price if you click sell To send a SelectNet order all you need to do is click on the appropriate MMID This will automatically load the correct price and load their acronym in the preference box Additionally SNET will automatically appear as the order route Once you have specified the correct number of shares you can then press buy or sell to
36. hows full market depth with the prices that each market maker and ECN wishes to bid and offer The NYSE releases just the best bid and best offer All NYSE orders are sent to the NYSE trading floor for execution AMEX is similar to the NYSE An N in the Exchange Symbol ID represents a stock traded on the NYSE NYSE stocks have just 1 3 letters in their symbol The NYSE uses an electronic order routing system called DOT or SDOT It is the Designated Order Turnaround System DOT electronically routes orders directly to the NYSE trading floor You can place DOTL limit DOTM market and DOTS stop orders for NYSE stocks The NYSE has also begun allowing ECN trading of its stocks You can place Island orders on many NYSE stocks Liquidity for listed securities on Island increases daily When looking at the quote window on an NYSE stock you will see just a few acronyms in the Market Maker ID column NYSE will be one of these The other MMID s represent the different regional exchanges The bottom line on the NYSE is that your trades are either routed to or executed against NYSE quotes only Island trading takes place strictly between Island traders To view Island quotes on NYSE stocks right click in the quote section of the Trading Window select Show ISB and then click ok There are several regional exchanges in the U S which make markets in listed securities These include the Philadelphia Exchange PHIL the Chicago Exchange CH
37. ill take different amounts of time to cancel e Island cancels are basically instantaneous e Selectnet orders cannot be canceled until 10 seconds have elapsed but are generally quick if canceled thereafter e SOES cancels are basically instantaneous e DOT orders may take 30 seconds or more to cancel e AUTO orders vary depending on how long the order has been in the market AUTO cancels are not instantaneous and may take several seconds 23 7T Tips amp Extras Short Selling Short Selling is the sale of borrowed securities with the strategy of repurchasing them at a lower price in order to make a profit In short selling you click SHRT to sell first Later you buy back the position you originally sold Short orders must be entered in compliance with NASDAQ and SEC regulations The trading software has built in safeguards that attempt to prevent you from breaking the rules The stock must be available In order to short sell you must locate shares to borrow in order to sell You can visit the Trader Resources section of the web site each morning for a list of stocks available for short selling This list usually includes between 3800 and 4100 different securities The list changes daily If you wish to short a stock that is not on the list contact Trader Support and they can attempt to locate shares for you from other clearing firms You may only short sell a NYSE stock on an uptick To short a NASDAQ security a trader must sh
38. k ECN direct coming at a future date BRUT Brass Utility ECN direct coming at a future date GNET OTC BB securities view book at www globenet com NASDAQ SNET SOESL SOESM ISLD ISLDN AUTOL AUTOM AUTOS ARCA GNET OTC BB only REDI coming at a future date BRUT coming at a future date NYSE amp AMEX DOTL DOTM DOTS ISLD Only the most active listed stocks trade with any liquidity on island You can trade extended hours through ISLD for listed securities P This will automatically load your share size box to the amount of shares you currently are holding in the stock you have selected For example if you have 575 shares of DELL you could click P and it would automatically load 575 shares in the share size box If you do not have a position in the stock then nothing will happen when you click P CXL Cancel the last order you sent This will not work if you have switched to a different stock symbol in the meantime PRICE Box This is located directly to the right of the P button You can specify a price by typing itin You can also adjust the price in increments of 1 32 of a point using the arrow keys to the right of the price box The quickest and simplest way to enter a price is to click on a price in the Bottom Portion of the Trading Window DAY TIF pull down box This is the Time in Force TIF window A DAY order remains in the market until the end of the day Other times in the pull down menu are in min
39. kers using SOES e You can use Island to place your own bids and offers e You may also place orders directly with the ECNs that are listed such as ARCA Archipelago ECNS which allow direct access posting of bids and offers will be added to the platform as they become available While INCA REDI and BRUT have been added to the list of Order Entry options they are not currently available SOES SelectNet and AUTO orders will only work on NASDAQ traded stocks The NASDAQ also has a Bulletin Board and Small Cap market e A U indicates a Bulletin Board stock You may be able to pull up Level Il quotes on these Stocks However you cannot place trades on Bulletin Board stocks using the trading platform You will need to contact Trader Support e An S indicates a NASDAQ Small Cap stock You can use SOES and SelectNet on these stocks Market makers may or may not fill your orders and some may not accept SOES orders NASDAQ stocks have 4 or more letters in their symbols The NASDAQ is a decentralized Exchange and a negotiated market there are different methods for executing orders All orders are not routed to one central trading floor They are routed to the different market makers and ECNs On the NASDAQ Level II screen you will see Market Makers and ECNS listed in the MMID column ECNs have a sign after them To place a trade with anyone on the screen you would preference the participant and route your order
40. ly 25 shares If you display the ISB quotes on your Level II you will often see that ISB will cross the market NASDAQ does not permit crossed markets where the bid is higher than the offer and vice versa however Island is its own network You can enter orders that cross the market using Island Certain ECNs only search for a match for your limit order within their own system In contrast Archipelago s outbound order preferencing software searches all available pools of liquidity to find the best price It works like this Once your limit order becomes marketable Archipelago first determines whether the best bid or offer in the market currently resides in its system If the best price is not available in ARCA s book Archipelago routes your order to the market participant with the best price If there are multiple participants at the best price Archipelago routes it to the participant s with the best order execution ratio based on the participant s history of successfully filling past orders and the time and size shown Best execution means that Archipelago actively seeks out the best price for your order by matching internally or routing out to the best bid or offer Archipelago uses technology to bring buyers and sellers together seamlessly without market intermediaries giving all investors regardless of order size and identity fair and equal access to the marketplace ARCA fills in round lots only ARCA s MMID shows up frequen
41. m or you can link an EcnBook to your Trading window The EcnBook will show the top 40 Island bids and offers on the stock symbol you have entered If you are not the highest Island bid or lowest Island offer you will see your order listed here You can also display Island book bids and asks on your Level Il Right click in the bottom section of the trading window A Level2Config window will pop up Click Show ISB Then click ok Press the enter button to refresh your quote All Island book trades will display in your Level Il as ISB Note There will be a double listing at the best Island prices if you have clicked Show Island and Show ISB You can place Island trades from 8 00 a m EST until 6 30 p m EST In extended hours trading prices usually fluctuate a lot more and spreads are usually wider Double check your price and share size before sending orders In the Island book you will notice a column of buy orders and a column of sell orders If you enter to buy at a price equal to or higher than a price in the ask column sell orders your order will be instantly matched if there are enough shares listed If you entered an order to buy on Island at 44 and there was an Island sell order listed in the Island book at 43 34 you would get the better price You will get lots of partial fills trading on Island This is because not all traders enter the same amount of shares Some trade 1 000 shares per order while others trade on
42. mpty Account indicates the account holding the order Multiple accounts can be traded within this platform e Seqno indicates the sequence number for the order for internal tracking purposes The Trade Tab records your trades for the current trading day You may want to print this list at the end of the day Most of the columns in the Trade Tab are similar to those in the Order Tab However there are a couple notable differences Status will have an O indicating that the order is open Comm stands for commission this box does not populate All your trades and profit and loss will tally without subtracting commission costs Type is the type of account you are trading in This will either be Type 1 for a cash account or Type 2 for a margin account Solicit and Capacity will not populate The Log keeps track your daily activity Activity includes when orders were sent and when they were cancelled All orders placed and cancelled will be recorded in the log in chronological order You may want to print this for your records Sending indicates a trade was placed and is on its way to the market sent indicates it is at the market Then you will either see canceled for cancelled orders or buy for stocks you have bought or sell for stocks you have sold or sold short The log displays the number of shares the stock symbol price route and the time of your action The Symbol Tab allows you to check to see if you can
43. n the ASK column SOES sell orders go to market makers in the BID column As the inside market changes your SOES order will move to a new group of market makers SOESM orders can be risky because the market can fluctuate rapidly Remember to keep an eye on the changes If you don t like the new inside market prices then cancel your order 2 SOESL SOES Limit When sending limit orders you must specify a price SOESL orders will function just like a market order however you will not get a price worse than the price you specify To senda SOESL order you must enter an amount of shares then select SOESL in the order routing pull down menu and then select a price You cannot enter prices that are better than the inside market use Island or AUTO to do this For example if you wish to buy and the offer is 53 you cannot enter a SOESL order to buy at 52 The trading platform has a direct connection to the Island ECN Island is an Electronic Communication Network All Island orders and trades are executed with other Island traders Island allows you to place your own buy and sell orders in the market By entering an Island order you will show up in the Island Book NASDAQ Level II displays only the best Island bid and best Island offer for over 100 shares These will be shown on your screen as ISLD If your order is the best price than you will see your order on the NASDAQ Level II quote 19 You can see the Island Book at www isld co
44. ng window sizes is the same as any other Microsoft Windows application To move a window click and hold the top bar Than move the window where you want to and let go of the mouse button To adjust the size of a window carefully grab a side or corner of the window Your cursor will change to an either or direction arrow Click and hold and expand or contract the window to your suiting and then let go of the button At times your internet service provider may cease proper connectivity A split second of broken connection can disturb your trading platform If you should become disconnected from the network you will receive a prompted message on your screen indicating that you have been disconnected You can quickly refresh your trading platform by logging off and logging back in 24 The ticket count reflects your number of trades A buy order and a sell order are two separate tickets Your trading will be subject to partial fills For example you may enter an Island order to buy 500 shares but one trader may only sell 200 to you and another will sell 150 and another will sell you 150 This means that your order was broken into 3 partials This will count as only 1 commissionable trade as long as all 3 partials filled within 3 minutes however if you cancel your order after only receiving the first two partials and then you enter a new order to buy the other 150 shares then your new order will be counted as a different ticket Your commi
45. nsidered volatile and because of this volatility can cause an account to become subject to a call To protect the investor positions held overnight that are posted on the Special Maintenance Stock list are subject to a 50 maintenance requirement This list is posted on the Trader Resources Section of the website Both the Federal Government and the National Association of Securities Dealers NASD have established margin rules and a copy of them can be found online at their respective websites For any questions please contact Trader Support and we will be happy to assist you 31
46. of the High Low indicator is the PCL section which details the closing price for the previous day s trading Underneath the Exchange Symbol ID field is the Last field which details the most recent price traded for that particular stock To the right of the Last field is an indicator that details the change in the stock price from the previous day s close To the right of this field is the Volume traded for the stock during that day s trading session Finally to the right of this field is the primary exchange where this security is traded The numbers in parentheses reflect the largest size on the inside market by any one market maker The light blue bar is used for linking windows Click and hold down the left mouse button drag the circle onto the window that you would like to link to the Trading Window Release the mouse button when the cursor is over the window that you wish to link Each time you change securities in the Trading Window it will now change securities within the linked windows also Any time that you have placed an order it s status will be listed here in the light blue bar until you change securities Once you have changed securities you will have to follow your pending orders within the Trade Manager Next to the light blue bar is a darker blue button that functions as a safety for your Trading Window If your button is blue this means that your Trading window is enabled to trade If you click on the dark blue button it will turn
47. ort above the current inside bid One way to accomplish this is to add 1 16 to each order If you receive an error message you may be breaking one of these rules You may want to set up the screen the way you like it and save it as default The platform will always automatically open the default file If you rename the default file you can save your new layout as default Once the two windows are open that you would like to link hover your mouse over the light blue bar in the trading window Then click with the left mouse button and hold A circle will appear While holding the mouse button down move the circle into the window you want to link and then drop the circle by releasing your hold on the mouse button Now the 2 windows are linked and whenever you type in a new symbol both windows will update You can link a trading window to multiple windows You may also open a different trading window that can be linked to its own set of windows The inside market is the highest bid price and the lowest offer price The inside market may also be called a Level quote AUTO and SOES buy orders will be sent to the inside offer lowest offer top of right column AUTO and SOES sell orders will be sent to the inside bid highest bid top of left column Looking at your trading window you will see the inside market prices listed in the top bar The inside market is color coded in yellow in the quote display Moving and adjusti
48. ot guaranteed and they will not work after hours AUTO only executes at the inside market price There are 3 types of AUTO orders AUTOL Limit You may enter AUTOL orders at any price The key with a limit order is that you specify a price Remember that all orders will only be executed at your limit price or better If you specify a limit price to buy sell which is higher lower than the current inside market then your AUTO order will track the market up down to the price you specified It will attempt to execute your order at the best possible price but no worse than the price you specified If you specify a limit price to buy sell which is below above current market prices than you are trying to get a better price Your AUTO order will reside in the Island book as an Island order until the market drops rises to your price Once your price is reached AUTO will attempt to execute the order at that price against whatever market makers or ECNs are available AUTOS Stop Most NASDAQ Trading Platforms will not allow stop orders AUTO because of its artificial intelligence capabilities does allow stop orders AUTO Stop orders are not guaranteed AUTO seeks 9 times for an execution During fast and volatile markets it is possible that the AUTO order may not find a fill causing the order to cancel To enter an AUTO Stop order make sure you have selected AUTOS in the order entry pull down box Then specify a number of shares A s
49. re size may or may not be an accurate reflection of their intentions GlobeNet GNET is similar to an ECN for bulletin board securities GlobeNet s order book can be viewed at www globenet com GNET routing accepts limit orders only Commissions for orders placed through GNET are subject to the 10 000 shares per ticket rule 6 Order Entry Placing Orders It is important to double check your orders before sending them There are certain steps you should take when placing an order Go through these steps then recheck your order before you place it Check out the situation and determine the best way to send the order Select the order route Enter the correct number of shares Enter a price Boo To check e s the correct account number highlighted e sthe order route share size and price entered correctly Once satisfied 22 Click the appropriate button If you want to buy click BUY If you want to sell click SELL The computer will not let you sell more than you own If you want to short sell click the SHRT button To cancel e tis best to left click once on the order in the Order tab of your TradeManager Then click to cancel the order e You may also click CXL in your trade window Though this will not work if you have jumped around i e changed to a different stock etc e You may also set up a cancel hot key You can quickly set up a Selectnet preference by just clicking on the appropriate MMID The
50. screen Many of the screens are essential to trading while some are ancillary and can be accessed as data when needed Traders may find different windows more important than others based on personal preferences The following three windows are essential to trading and should always be open Trading Window Trading Trade Manager Window Trade Manager Account Manager Window Account Manager 3 1 The Trading Window E IWOY 30 174 40 30 15 16 1 Ioj x Woy H323 4 L19 15416 PCL 25 63 64 Last 30 1 2 433 64 Vol 7313900 Q arent ee een eee oo le efl 4 ber REDI pv any gt sp RrERROR 1220 E MSCO 30146 1 HRZG 293 4 1 FLIT 2958 1 NDBC 29315 1 NFSC 32 1 8 1 The top third of the Trading window displays level data regarding the equity that you have designated The Title Bar of the window will display the Inside Bid and Ask showing the best bid and the best offer for the stock Below the Title Bar is the Exchange Symbol ID field where you can enter the stock symbol for the information that you desire To the right of the Stock Entry field is a Tick Indicator that monitors and displays the direction of the last trade that was executed The Tick Indicator is used to indicate whether a stock is trading on an uptick or downtick To the right of the Tick Indicator is the High Low section which indicates the highest price and the lowest price that the stock has traded thus far today To the right
51. ssion rate is counted per 10 000 shares Extended hours trading is activity that takes place outside normal market hours before 9 30 and after 4 00 Pre market is defined as any trades taking place before 9 30 a m After hours generally refers to trading taking place after the market closes at 4 00 p m Extended hours trading tends to be extremely volatile and NOT liquid There are fewer traders and fewer orders Spreads can be wider All orders still remaining at the end of the day are automatically canceled You may place Island and ARCA orders for NYSE stocks in extended hours however the liquidity may be low or nonexistent You cannot place DOT orders for NYSE stocks in extended hours You cannot use SOES in extended hours You cannot place AUTO orders in extended hours By reading this manual and double checking orders before you send them you are taking steps to ensure greater accuracy and fewer mistakes Pre market Price Finding Pre market is defined as any trades taking place before 9 30 a m A Specialist at the NYSE trading floor trades NYSE stocks The Specialist is responsible for determining the opening price NYSE stocks will not trade before the open In fact sometimes the Specialist will take an extra minute or two to open his or her stock Stocks with a news announcement may take significantly longer to open at the NYSE NASDAQ stock trading is negotiated This negotiation takes place in the morning as well Some of these
52. st so that you can actually see and read the chart Once you select a color click ok e Below these options is the Overlay feature This allows you to track how a certain stock is performing relative to other stocks or indices Simply click to place a check in the overlay box and type in the symbol you want to track against e Next you will see the Study windows You may add up to 3 different technical analysis studies to your chart These will display at the bottom of your chart Click on the pull down menu to select a study such as volume You can change the configuration of each study including time frames if pertinent and colors by clicking on Config below the study you selected e You may also draw trend lines on your charts Click DrawTrendLine and then apply and exit In the chart left click once where you want the line to start and then hold the button down and let go once you mouse your cursor to the point you want the line to end Once you let go the line will appear You can adjust the color of the line in the ChartConfig menu and when you want to remove lines click CleanLine e On the top of the right side on the ChartConfig window are moving averages These will track the average price over a corresponding number of periods For example a 15 moving average will track the average price over the past 15 periods So if you have a 5 minute chart open it will be the average price during the last
53. stands for Small Order Execution System SOES orders are executed during normal market hours ONLY SOES is only for NASDAQ stocks All SOES orders are sent only to market makers SOES orders are executed at the inside market only ECNs do not receive SOES orders If only ECNs are available at inside market prices then your SOES order will wait for the price to change or for market makers to join the ECNs NASDAQ specifies Tier Levels SOES Tier Size limits the number of shares you can execute using SOES Small Cap stocks may have SOES Tier Sizes of only 200 shares This means you can only trade up to 200 shares on these stocks using SOES SOES orders are executed on a first come first serve basis The price may change between the time you send your order and when it is executed You can cancel SOES orders Once you click cancel SOES orders are almost instantaneously cancel SOES orders have a Time in Force TIF of just 90 seconds If your order has not filled after 90 seconds it can automatically cancel In this case you will need to re enter the order and maybe choose a different route You may get partial executions when using SOES There are 2 types of SOES orders 1 SOESM SOES Market All you need to do is specify SOES enter a correct number of shares and click buy sell or short sell SOES will randomly send your order to market makers at the inside market asking them to accept your order SOES buy orders go to market makers i
54. the subject with regard to today s activity The Order Tab is the default and this is the window you should keep open at all times Current live orders will be listed here The following list supplies the vital information available referencing your order Time exact time when the order was first entered Symbol stock s trading symbol Side Buy orders will show a B and sell or short sell orders will show an S Qty indicates the quantity of shares you entered to buy sell or short sell on the original order Open shares not yet bought or sold Price your order limit price Route indicates the method used to send your order For example AUTO SNET ISLD SOES Type indicates type of order sent L for limit order S for stop order or M for market order Status indicates the status of the order A Sent confirms that your order is at the market Sending means the order is in transit to the market Canceling means the order is not cancelled but a cancel request has been sent 12 e Short indicates if the order is a short sell The column will either have a Y for yes or an N for no Tinfs indicates the time in force for your order The original amount of time you specified for the order Day indicates that your order will remain for the day or until it is cancelled or executed A number specifies an amount of minutes The Broker column will always be e
55. tly as TNTO ARCA orders are all set for the day only specific minutes may be specified but these are ignored and the order will not timeout ARCA frequently cancels day orders at 4 pm ET If this happens to your order you would need to replace it for the order to remain active in the aftermarket ARCA can be used to trade listed securities but liquidity is very low AUTO is only for NASDAQ stocks AUTO orders use artificial intelligence to route your orders to market makers or ECNs for execution at the best possible price AUTO orders may be placed as Market Stop or Limit orders during normal market hours 20 AUTO makes 9 attempts to execute your order AUTO searches all market makers and ECNS at the inside market price AUTO will execute the order with whoever is there and in whatever quantity they can execute Therefore your orders may be executed against ECNs that have higher fees and extra charges Additionally AUTO takes what it can get so there may be partial executions In short AUTO is Smart but artificial intelligence is still in its infancy AUTO orders are not guaranteed After 9 attempts it is occasionally possible that the order may not have been executed If this is the case simply re enter the order If you enter an AUTO stop order do not assume that you can leave and the computer will take care of things for you Itis possible that the AUTO stop order will make 9 attempts with no success AUTO stop orders are n
56. to make Following any changes to your screen please select the File Menu then Save and finally select Ok Upon reentering the application select Open Screen and then highlight the screen of your choice to open your new layout You can print the information from any individual window on the trading platform For example you could print out the Top List at the end of the day To do this click on the top bar of the Top List window so that it is highlighted in bright blue Then click on File in the Menu Bar Select Print This will print the information in that individual window You can do this to preserve market information or more importantly to save records of your trading activity Click on Trades in the Trade Manager and then follow the same steps to print the information Always be sure that the box containing the information you want to print has been appropriately highlighted Print Setup will allow you to customize how you print it Print Preview will identify what exactly you are printing before you actually print it To exit print preview click on the X in the appropriate box Trader Menu lists the available windows that you can open and display on your screen Config Menu allows you to customize and configure your trading platform for the following e Configuration of Default order size route type time in force etc e Configuration of the application s current list of ECNs available for execution
57. to them via SelectNet Another method to enter a trade is SOES SOES is the Small 17 Order Execution System SOES routes orders only to the market makers and attempts to execute your order quickly at the best possible price You may also enter AUTO orders AUTO utilizes artificial intelligence to route your order to market makers and ECNs seeking the best possible price Finally you may place your order via an ECN You would use Island to route your order to Island and ARCA to route your order through Archipelago Your order would be listed in Island s book for execution with other Island traders Each market maker is basically running their own independent market Level Il simply integrates these bids and offers into an efficient trading market SelectNet is used to place orders with any buyer or seller displayed on level 2 The two types of SelectNet orders are Preferenced and Broadcast SelectNet Preference A Preference order is one in which you pick a specific market maker or ECN to send your order There is a preference box located in your trading window By clicking once on any of the market makers or ECNs their 4 letter acronym will load into box Only the market makers or ECNS listed in the level 2 screen of your Preference Window will accept orders through SNET for that security SelectNet Broadcast Broadcast orders are SelectNet orders sent at a certain price but the preference box is left empty This type of order is for all t
58. top order is entered to protect a profit and to limit losses So you may enter an AUTOS buy order to buy a stock you short sold earlier or you could enter an AUTOS sell order to sell a Stock you had previously bought Stop market List only a price in the market box indicating the price you wish to sell buy the stock at should it reach that price A market order means that once the stock reaches that price it will attempt to execute your order at the next available price Stop limit You must enter a price in the market box This is the trigger price Then in the limit box specify a worst case price For example in this case you might enter the AUTOS sell order at a market price of 54 meaning when it reaches 54 you want to sell and a limit price of 53 1 2 meaning you will not take a price lower than 53 V2 In fast market conditions this order decreases the chances of a fill Stop trailing Some traders prefer to lock in a profit or limit their losses according to the market s performance Here you specify the negative dollar change in relation to your situation You could enter 1 00 indicating you don t want to lose more than 1 point If the stock rises to 60 before ever dropping 1 point then it will sell the stock when it drops to 59 The price is calculated according to the inside market prices so spikes on your chart will not cause erroneous executions You cannot place trailing stop orders after hours 21 DO NOT place
59. utes ANY AON pull down menu ANY means that although you may enter your order for 400 shares you will take whatever is available This means you may get partial fills All orders sent to ECNs Island SOES or AUTO orders must be sent as ANY Even if you select AON they will be sent as ANY orders AON can be used only for SelectNet market maker orders and DOT NYSE or AMEX orders AON all or none means you are telling the market makers to fill all of your order or nothing at all hence you will not accept partial fills DEF At any time if you click on DEF you will reset all the order entry settings to your default settings BUY Press this to send your buy order You buy to enter a trade or to close a short position ACCOUNT pull down menu Be sure that your account is highlighted here If you have multiple accounts you can use this to toggle back and forth between different accounts Be sure to always select the account after entering the security symbol otherwise it may refill the default Regarding the bottom third of the Trading window there are two groups of columns displaying Level II information The left side is the bid side representing buy orders displaying the Market Maker ID MMID the Bid and the Size hundreds The right side is the offer side which shows sell orders displaying the Market Maker ID MMID the Offer and the Size hundreds NYSE and AMEX disseminate Level quotes from the different regional exchanges The NY
60. y in your account look at Buying Power on Trader Resources If your maintenance requirement is less than your margin equity then your account is in a maintenance call MAINTENANCE REQUIREMENT Account Number Symbol CUSIP Position Closing Price Market Value Maint Req 30 There are four ways to get out of a maintenance call Q Depositing cash in amount of call Q Depositing stock of shares Call Price per share req Q Selling securities of shares Call per share req Market value shares X share price Q Capital appreciation of portfolio in the amount of the call If you do not have buying power you are in a maintenance call The maintenance requirement for each position may be 25 but the maintenance requirement on your portfolio is usually 30 This means that you must own 30 of your marginable positions and only borrow finance 70 of your portfolio An account is concentrated if the market value of any position held in the account exceeds the margin equity of the account If an account is concentrated than the maintenance requirement on your portfolio is 40 instead of the standard 30 You can figure out your account equity percentage by dividing the margin equity by the margin market value Special Maintenance Stocks Most securities command a maintenance requirement of 25 equity Certain volatile stocks or special maintenance stocks require a 50 maintenance requirement These securities are co
61. y losses will not be subtracted and gains will not be added to this figure To illustrate this point you begin the day with no overnight positions and 10 000 cash Your buying power is 20 000 You open a position of ABC for 20 000 and later close this position for 20 500 realizing a gain your buying power is still 20 000 If you chose to hold a position overnight your buying power is the lower of Reg T buying power or Day trading buying power The preceding matrix outlines how Reg T buying power is generated As you can see this figure is the product of SMA Money Fund Balance Cash Account Balance X 2 This figure is updated each night and is not affected by intraday trading It is very important to peruse your buying power daily Day trading buying power and overnight buying power are frequently different When you hold a position overnight and sell it the following business day the proceeds are not available until the next business day a Equity The margin equity used to calculate buying power is a product of the Total Market Value A Cash and Credits B Margin Debt C Again this is a static updated at the end of the business day POSITIONS MARKET YALUE Account Number Account Type Symbol CUSIP Position Closing Price Market Value CASH Account Number Account Type Cash EQUITY a Positions The Total Market Value of your account is the combined market value of your individual positions Most positions are valued at

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