Trading stocks involves understanding various aspects of the market, including the relationship between supply and demand illustrated through bid and ask prices. These prices indicate the willingness of market participants to buy or sell a security. Thinkorswim, a popular trading platform, provides traders with the ability to view these prices and make informed decisions about their trades. By understanding how to show big ask and bid on Thinkorswim, traders can gain valuable insights into market sentiment and make more profitable trades.
Moreover, displaying big ask and bid on Thinkorswim helps traders assess the depth of the market. Depth of the market refers to the volume of orders available at different price levels. By visualizing the big ask and bid, traders can gauge the liquidity of a particular security and make informed decisions about their entry and exit points. A deep market with a wide spread between the bid and ask prices indicates lower liquidity, while a narrow spread suggests higher liquidity. This information is crucial for traders looking to execute large orders without significantly impacting the market price.
Furthermore, the ability to show big ask and bid on Thinkorswim is particularly useful for scalpers and day traders. Scalpers seek to profit from small price movements by entering and exiting trades quickly. By visualizing the big ask and bid, they can identify potential reversals and make informed decisions about their trades. Day traders, who hold positions for a single trading day, also benefit from this feature, as it allows them to assess market sentiment and potential changes in price direction, helping them make more informed trading decisions throughout the day.
How to Show Big Ask and Bid on Thinkorswim
To show the big ask and bid on Thinkorswim:
- In the Quick Trade Panel, click on the “Symbols” tab.
- In the “Symbols” field, enter the ticker symbol of the stock you wish to trade.
- Click on the “Trade” button.
- In the “Trade” window, click on the “Configure” button.
- In the “Configure” window, select the “Big Ask” or “Big Bid” option in the “Show Depth” section.
- Click on the “OK” button.
The big ask and bid will now be displayed in the Quick Trade Panel.
People Also Ask
How many ask and bid sizes are available in Thinkorswim?
There are 5 available ask and bid sizes in Thinkorswim
How can I change the number of bids and asks displayed on the chart?
To change the number of bids and asks displayed on the chart, go to the “Chart” menu and select “Settings.” In the “Chart Settings” dialog box, go to the “Bid/Ask” tab. Here, you can change the number of bids and asks displayed in the “Levels” field.
