Strategy for an Existing Position

An Existing Position strategy is a strategy to sell a stock you already own. The Trade Strategies tool can help you create a plan to exit the stock for profit or minimal loss.

Create and Execute a Strategy for an Existing Position

1. Select Trade Strategies from the Features drop-down menu.
2. The Trade Strategies window will appear. Click the "Add" button to create a new trading strategy.
   
   
   
   
3. The Wizard-Select Strategy window will appear. Three strategy options are available: New Long Strategy (buy), New Short Strategy (sell short), and Existing Position (sell all or part of a position you already hold).
4. Select Existing Position. (Note: If your account contains no open positions, this option will not be available).
   
   From the "Existing Positions" drop-down list, select the position you wish to trade, and enter a quantity. (You can trade all or part of your holdings.)
   
   
5. Click "Next."
6. The Wizard-Exit Trade window will appear. This window helps you form a strategy to sell the stock once you own it. Set two "Exit" strategies: one to sell for a profit, and one to minimize loss should the stock move against you.
   
   "Profit Trade" is a strategy to sell the stock if the stock moves in a favorable direction. In the case of a "Buy," the price will be higher than the price at which you bought.
   
   "Protective Trades" is a strategy to sell the stock if the stock moves against you. This strategy helps minimize losses. In the case of a "Buy," the price will be lower than the price at which you bought.
   
   
7. Click "Finish."
8. The Wizard returns you to the Trade Strategies window, and the strategy you created appears in your "Trade Strategies" list. Select the name of the strategy you just created, and click Submit Selected ." "[Ready]" will appear next to the strategy's name.

Monitor Your Strategy

Your strategy can be monitored from the Trade Strategies window.

A Status indicator is provided next to the strategy name. If the strategy has been submitted, " [Ready] " appears next to the strategy name. Otherwise "[Not Submitted]" (strategy not sent to the Trade Strategies server and made active), "[Entering]" (initial order has been placed), "[Entered]" (initial order has been completed), or "[Completed]" (exit order has been placed) is listed. Errors such as "[Entry Failed]" and "[Exit Failed]" are usually followed by an explanatory message.

Strategy details (including the Entry Order, Exit Order for Profit, Exit Order for Loss, and any Abandon strategies) are listed in green. Executed Elements (parts of the trade that have been executed on the market) appear in bold print as they are completed. A unique Trade Order Number appears next to buy and sell orders as they occur.

View Positions and Trade Details

As with all other trades, information about orders executed through the Trade Strategies window can be found in the Portfolio. To access this information select Portfolio from the Feature drop-down menu, and click the Positions, Open Orders, Activity, or Trade Journal tab.