Traders who execute orders in options are getting a tool that works based of their perception of the market – where it is and where it could be going.
The new software, dubbed “Trade Finder,” is billed by the mega-buyside investor as taking clients on the journey from ideation to order entry by answering four simple questions. The new system is available on TD’s Trade Architect system, its Web-based trading application.
Traders can breakdown and analyze each potential trade with precision and build confidence along the way with easy to use interactive walk-throughs, according to TD.
“As a leader in options trading, about 70,000 accounts placed their first option trade with us in the last year,” said Nicole Sherrod, managing director of trading at TD Ameritrade. “Experienced option traders utilize complex option strategies to manage their account in any type of market. Now navigating the options market has never been more straightforward for the novice trader. We’ve simplified what is perceived as a very complicated and difficult learning curve with an innovative new approach.”
Here’s how it works:
First, a trader enters the ticker symbol of interest. Then he chooses the perceived direction the stock is headed and how long it will take to get there.
After that, he selects probability of success to balance risk and reward and decides how much capital to allocate to the trade.
See a video on how the system works
He then click’s a “scan” button or function to display results tailored to the client’s approach. The trader gets a breakdown and can then analyze the risk/reward of any potential trade with interactive visuals and voice technology. If the trader decides to execute the trade, then the order can be entered into TD Ameritrade’s order system.
Trade Finder will be available on the main TD Ameritrade investing platform and on TD Ameritrade Mobile within the year.
