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StreetSmart.com User Guide

1. Available only for Limit Orders of 200 shares or more Seurity Types Traded NMS OTC Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account Margin trading increases your level of market risk For more information please refer to your account agreement and the Margin Risk Disclosure Statement Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 139 Partial Fills Smart An order routed through Smart may have partial fills Schwab will continue attempting to fill the order until it s completed e Fora Day Limit order there is only one commission charge and generally one order number assigned unless you change your order regardless of the number of fills it takes to complete the order e Good Til Canceled orders have the potential for multiple commissions if the order takes more than one day to complete One commission will be charged for each day s combined fills based on execution prices and quant ities Direct Access If you have Direct Access enabled for your account it is your responsibility to make sure your order is filled to your satisfaction Partially filled orders require a decision on your part to either enter an additional order for the remaining shares or not For Direct Access orders there is always the potential that your order will not completely fill As the default settings have a maxim
2. Estimate of the change in option price pera 1 change in volatility of the underlying based on selected option pricing model Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 90 Options Days until Exp Expiration Date Intrinsic Value Open Int Strike Time Value Underlying Symbol Underlying Last Extended Quotes 52 Week High 52 Week Low After Hours Chg After Hours Chg Avg Vol 1 month Dollar Volume The number of days until the Expiration Date Date the option expires All holders of options must indicate their desire to exercise by this date The value by which the option is in the money calculated for calls as underlying price strike price or for puts as strike price underlying price The number of outstanding option contracts per option series Option strike price the price at which the owner of an option can purchase call or sell put the underlying security The value of the option that is not attributed to the intrinsic value calculated as Midpoint Intrinsic Value The symbol of the underlying security or index upon which an option is based The last trade price of the underlying stock of an option Highest price at which the security has traded over the last 52 weeks Lowest price at which the security has traded over the last 52 weeks Change from today s close to last after hours trade price
3. Exe Cost Per Share What cutions the Pos itions Tab Dis plays 5 17 04Se 32 as the remaining 400 shares are from the II 600 DELL 600 32 purchase 34 1 17 04 400 DELL Cost 12 800 32 x 400 12 800 Important Information Regarding Cost Information and P amp L Calculations for Your Accounts Missing cost and P amp L information will be represented with an N A Incomplete cost and P amp L information will be represented with either the word Incomplete or an asterisk in the Cost column and P amp L columns If lot level data is not available for your account but cost data is displayed it will exclude commissions and transaction fees and will not reflect corporate actions including but not limited to stock splits stock dividends spin offs mergers and name changes If lot level information is available for your account the cost and resulting profit and loss data will include commissions and transaction fees but may also be incomplete because it may exclude manual adjustments and corporate actions including but not limited to stock dividends spin offs mergers and name changes Please note that cost and resulting profit and loss data displayed in StreetSmart Edge is not the official record of your account Your statements and confirmations serve as your official records Realized Gains Losses Realized Gain Loss The Realized Gain Loss tab displays realized profit or loss information for
4. From built in template 1 Click the Conditional Orders tab in the Trade tool or Symbol Hub Click or create a Conditional Orders tab if using the All in One tool Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 256 2 Choose the template you want to base your new template on from the Tem plates drop down and click Load 3 Make any changes you want to the template including entering the Order instructions as only conditions are included in the built in templates 4 Change the Conditional Order Name you cannot save over the built in templates 5 Click Save as Template You may save up to 20 conditional order tem plates if you need to save more see Saving a Template to File below 6 Next time you create a conditional order your new template will display in the Templates drop down TIP In both cases be sure to give your template a name in the Conditional Order Name field that gives an indication of the purpose of the behavior of the conditional order This will make it easier to find the correct template later on when you want to use it again Otherwise unnamed conditional orders are given a system generated name using the current date and a sequential num ber Saving a Template to File In addition to saving templates into the software you can save them to a loc ation other than the default template folder This enables you to share the file with other StreetSm
5. If lot level data is not available for your account but cost data is displayed it will exclude com missions and transaction fees and will not reflect corporate actions including but not lim ited to stock splits stock dividends spin offs mergers and name changes If lot level information is available for your account the cost and resulting profit and loss data will include commissions and transaction Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 84 Positions fees but may also be incomplete because it may Cost Share Day Chg P amp L Day Chg P amp L Share exclude manual adjustments and corporate actions including but not limited to stock dividends spin offs mergers and name changes Please note that cost and resulting profit and loss data displayed in StreetSmart Edge is not the official record of your account Your statements and confirmations serve as your official records Quotes for mutual fund positions are based ona quote from the most recent closing price avail able For all other positions during market hours market value is derived from real time quotes After market hours market value is derived from the most recent closing price or last trade unless you have Update Equities Profit amp Loss during After Hours checked in your Account Settings Cost per share for the position Today s gain or loss for your equity and op
6. Qualified Spreads With a Qualified Spread the purchased option is required to expire on the same or later expiration date than the option sold When there is more than one pos sible way to pair available options in your Account Schwab has the discretion to determine the spread pairings Schwab may pair options in a manner that does not produce the lowest possible margin requirements Note For butterfly and condor spreads each option leg must have the same expiration date to qualify as those types of spreads Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Iron Condor An iron condor strategy combines a call spread and a put spread it involves two call legs and two put legs all with the same expiration date generally with con sistent distances between strike prices The strategy gets its name from its 4 part structure involving the two outer strikes or wings and two inner strikes representing the body The two inner strikes are typically positioned around the current price of the underlying stock Long Iron Condor A long iron condor is created by selling a lower strike Put purchasing a higher strike Put purchasing an even higher strike Call and
7. The following values are available for view in the Balances Bar Available Values Descriptions Total account value The Total Account Value is the sum of your securities unswept or intra day cash money market funds bank deposit accounts and net credit or debit balances in your account Today s change Indicates the change in account value from the previous trading day s close This includes your trading activity as well as deposits and withdrawals Today s change Indicates the percentage change in account value from the previous trading day s close This includes your trading activity as well as Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 72 Available Values Cash balance Available to trade Settled cash to trade Descriptions deposits and withdrawals The total dollar value of your unswept or intra day cash money market funds bank deposit accounts and net credit or debit bal ances you hold in the Schwab account you have selected to view The maximum amount of money in your account that you can use to trade without creating a request for the deposit of addi tional funds Trading in the Margin Account Trading on margin does not require settled funds If 100 of the trading activity occurs on margin there will be no difference between the settled funds to trade balance and the total available to trade bal
8. e A Primary Peg order to buy XYZ with a limit of 20 05 will be submitted at 20 e If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 05 e If the order is not executed it will not update beyond the limit price and will remain posted at 20 05 This field will display next to the Limit Price when a pegged order type is selected Added to the bid or offer to produce the actual order price Allows more flexibility in your order EXAMPLE To peg the offer minus 02 Peg Diff must equal 0 02 the neg ative sign is required Description Can be entered after 7 00 a m ET and expire at the end of the extended trading day 8 00 p m ET Portions of the order not filled immediately upon reaching the market are canceled Description A special condition that specifies the minimum execution quantity the client will accept with any amount up to the specified Quantity thereafter e Use only for orders over 300 shares e When checked the amount field can be changed but the amount must be at least 200 shares e Designating minimum shares applies to the first fill only Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 149 Special Description Conditions Max Floor Specifies the reserve size for the order Must be a round lot equal to or less than the order quantity Reserve size has no time priority in Market Depth Only the displ
9. How do I set up my lay outs with automatic electronic access to all primary listed Options exchanges Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve mul tiple commissions Please read the options dis closure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request With StreetSmart Edge you can customize up to 20 real time charts with up to 20 tabs to help support your research and strategy needs You can choose from multiple chart styles timeframes and technical indicators For additional information on the technical indicators available in StreetSmart Edge click here Chart pattern recognition in StreetSmart Edge is provided to users by a third party program from Recognia The application may help support your decision making by auto mating pattern recognition of more than 60 chart patterns indicators and standard oscil lators You are also able to set up custom screens and email alerts and monitor real time technical analysis Recognia Inc is not affiliated with Charles Schwab Schwab does not endorse any of the content or features made available to you in Recognia s tools Schwab does not recom mend the use of technical analysis as a sole means of investment r
10. e Logarithmic or percentage scaling will change the price scale s appearance by making the vertical spacing between two points correspond to the percentage change between those numbers So for instance the vertical distance between 10 and 20 and the vertical distance between 50 and 100 will be the same This helps provide a visual picture of charts with large vertical ranges Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 275 Location Choose whether to display the price scale on the left or right side of the chart Adjust Scale to Display Studies When unchecked default the price scale of a chart is based entirely on the security price range If checked the range of any studies overlaid on the chart will impact the chart price range and can skew the display Use Price Scale with Overlay e If checked the price chart and overly will display in the same space without scaling to show the relationship between the symbols e If unchecked a percentage scale will display to the left of the price chart and the chart and overlay will scale to display how they relate in terms of percentages rather than in terms of a raw price scale This helps you more fairly compare the per formance of symbols trading in different price ranges Line Widths Choose the line width for the price chart Applies to price chart regardless of chart style Element Display Options e Show Time Li
11. reyes f Acson gt T 04 00 PM NEW ZALA Open Story 0 PCT DECEMBER ON PVS MONTH 4 7 PCT ON Yi 03 27PM MARK PU Hide Preview engis Keryx Luna Innovations 03 05 PM Workeginju Print p tayipwn gofiner sources 4 News Provider Settings lt ON THE MOVE RBQ hir Help for News x 01 22 2014 03 00 PM L Jan 22 Reuters RBC Wealth Management the U S brokerage operation of Royal Bank of Canada said it had hired financial adviser Kelly Kerr from UBS Kerr has 14 years of industry experience with more than 115 million in assets under management He joined earlier this month in the company s San Antonio Texas office RBC Wealth said on Wednes day Professional users do not have access to Thomson Reuters news Breaking News Tab The Breaking News tab gives you streaming real time general market news headlines Click a headline to display the article in the preview pane Double click on a headline or right click and select Open Story to open the article in its own window News Provider Settings You may enable or disable specific news providers from streaming news to your News tool To make changes to these settings right click in any of the news tabs or click the Actions drop down and select News Provider Settings This is a global setting so it is also available from the main Settings menu at the top of the software Check or uncheck news providers as you wish and click Save to enable the c
12. ta i 3 T iz z al lt 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Calendar Spreads The most common form of calendar spread involves the purchase of a longer term option and the sale of an equal number of shorter term options of the same type and strike Most spreads with the exception of spreads on underlying securities with very high carrying costs will initially be placed for a debit because of the greater time value of the longer term options This strategy can potentially be used to generate income and or to reduce increase the cost basis of an eventual stock purchase sale Using c
13. 1015 6153 202 Buy Write Gain Loss at Expiration 1 000 800 stock covered call 600 400 200 0 200 400 600 600 1 000 15 an 19 21 23 25 27 29 31 33 335 STOCK PRICE in dollars o 3 5 n l lt Unwinds Unwind is the term used to refer to the order that closes out the positions opened in a buy write strategy The unwind for the example in buy writes above would be to sell XYZ and to buy to close the 30 short call Unwinds should be viewed more as a closing transaction than as a true option trading strategy Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Sell Write amp Unwind Of the k
14. AMDM PDM is High High if gt 0 0 otherwise MDM is Low Low if gt 0 0 otherwise If both are gt 0 the smaller is set to 0 1 The basic Directional Movement trading system involves comparing the 14 day DI Directional Indicator and the 14 day DI This can be done by plotting the two indicators on top of each other or by subtracting the DI from the DI The study indicates buying when the DI rises above the DI and selling when the DI falls below the DI You can change the periods used in the calculation from the default of 14 2 The basic Directional Movement trading system involves comparing the 14 day DI Directional Indicator and the 14 day DI This can be done by plotting the two indicators on top of each other or by subtracting the DI from the DI The study indicates buying when the DI rises above the DI and selling when the DI falls below the DI You can change the periods used in the calculation from the default of 14 3 DX combines DI and DI Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 285 Exponential Moving Aver age EMA Geometric Moving Aver age GMA F Factor is related to an n day SMA by the formula F While similar to the SMA simple moving average the exponential moving average uses a smoothing factor to give more weight to recent prices while allowing all prices in the window to in
15. Close ow High Close Vol High Low imt x 1 Money Flow Percent normalizes the Money Flow calculation above by dividing by the cumulative volume for the period You can change the periods used in the calculation from the default of 14 Formula The formula for an n period Money Flow Per cent is t ioh A MoneyFlow 1 p 5 Low High cemo Vol gt Pai i t x l High Low ti Shows the number of puts divided by the number of calls based on open interest for individual stocks or indices The ratio is often used as a contrary market indicator which means that a high ratio may be a bullish indicator while a low ratio is often Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 280 Relative Strength Index interpreted as a bearish indicator The put call ratio study can display the P C Actual value where each individual data point represents the raw put call data or the P C SMA simple moving average the average of the raw data over the selec ted time period of the study Available for daily weekly and monthly charts for optionable securities Indicates the degree of positive and neg ative movement by the stock ona scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 14 days using today s current price for the 15th day divided by the sum of the average up
16. Difference between the near month SPS and the index of the S amp P 500 S amp P 500 Index SPX S amp P 500 PM Settled SPXPM S amp P Barra Value Index SVX TICK AMEX Up Down Ratio TICA TICK Cincinnati Stock Exchange up down Ratio TICC TICK CBOE up down Ratio TICCO TICK PSE Options up down Ratio TICPO TICK NASDAQ NMS Equities up down Ratio TICQE TICK NASDAQ Listed Stocks up down Ratio TICT TICK NASDAQ OTC Bulletin Board up down Ratio TICUE TICK Philadelphia Stock Exchange up down Ratio TICX TICK Philadelphia Options up down Ratio TICXO TICK Dow Jones Composite up down Ratio TIKC TICK Dow Jones Industrial up down ratio TIKI Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 421 TICK Dow Jones Transportation up down Ratio TIKT TICK Dow Jones Utility up down Ratio TIKU CBOE Interest Rate 10 Year Index TNX NASDAQ OTC Transportation Index TRANX TRIN AMEX Short Term Trading Index TRIA TRIN AMEX Options Short Term Trading Index TRIAO TRIN Boston Short Term Trading Index TRIB TRIN CBOE Short Term Trading Index TRICO TRIN Midwest Short Term Trading Index TRIM TRIN NYSE Short Term Trading Index TRIN TRIN PSE Short Term Trading Index TRIP TRIN NASDAQ NMS Short Term Trading Index TRIQE TRIN NASDAQ Listed Short Term Trading Index TRIT TRIN NASDAQ OTC Bulletin Board Short Term Trad TRIUE ing Index TRIN Philadelphia Short Ter
17. Following are the conditions you can specify when creating an Alert or Condi tional Order on a stock or option symbol See more on Creating Alerts or Condi tional Orders Overview Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 55 For a demonstration and more information on using Alerts or Conditional Orders visit the Training page If Stock ETF Call or Put Click Stock ETF for conditions using an equity sym bol Select Call or Put when using an option symbol for your condition Symbol Enter the symbol you want to monitor Click the drop down arrow in the symbol field to select from the symbols in which you hold positions Avoid placing alerts or conditional orders on any stock that does not have bid ask quotes including Pink Sheet securities Such alerts will not fire TIP For option symbols you can copy and paste the symbol from the option chains located in the All in One tool Trade tool or Symbol Hub by right clicking on the Option symbol and selecting Copy then Paste into the desired field again using right click Variable Select the type of data you wish to monitor for the symbol e Bid Bases your conditions on the inside Bid price e Ask Bases your conditions on the inside Ask price e Volume Bases your conditions on the daily cumulative volume e Trade Price Bases your conditions on the last sale price reported A It is
18. GLD Google GOOG and SPDR S amp P 500 ETF SPY As their name suggests mini options are a smaller version of the standard option contract These options were primarily introduced to accommodate investors who own fewer than 100 shares of these high priced stocks and ETFs There are two primary differences between mini and standard options e Contract size Mini options represent 10 shares of the underlying security instead of the standard 100 In other words the exercise of one mini option results in the delivery of 10 shares of the underlying security long call hold ers receive 10 shares at the strike price and long put holders deliver 10 shares at the strike price Premium multiplier The mini option premium multiplier is 10 rather than the standard 100 This means that the quoted price for a mini option is mul tiplied by 10 in order to determine the cost For example if a mini option is quoted at 5 consider this to mean 50 5 x 10 per contract In com parison a standard option quoted at 5 would be 500 5 x 100 per con tract not including commissions How can I identify mini options Mini options can be identified by a number 7 at the end of the underlying security symbol Here s an example e Standard option symbol AAPL 04 20 2013 500 00 C e Mini Option symbol AAPL7 04 20 2013 500 00 C Similarly any mini options that have been adjusted due to a corporate action merger spinoff stock split etc will be deno
19. Inc All rights reserved Member SIPC 1015 6153 89 Greeks TIn the Positions tab Greek values are multiplied by the position quantity and multiplier Gamma IV IV Ask IV Bid Rho Theta Vega For equities delta will be the same as quantity because the price will change dollar for dollar with the stock price Measures the change in delta for a change in the underlying security price Implied Volatility based on the option midpoint price and underlying price as calculated with selected option pricing model IV is a theoretical value in designed to rep resent the forecast volatility of the security or index as determined by the prices of multiple call and put options using the Black Scholes pri cing model Other variables usually include security price strike price risk free rate of return and days to expiration If all other variables are equal the security with the highest volatility will generally have the highest option prices Implied Volatility based on the option ask price and underlying price as calculated with selected option pricing model Implied Volatility based on the option bid price and underlying price as calculated with selected option pricing model Estimate of the change in option price pera 1 change in interest rates based on selected option pricing model Estimate of the change in option price per one day passing based on selected option pricing model
20. TIP The Profit value on the Y axis only relates to the P amp L lines not to the underlying probability chart Customize colors Right click on the color square for each graph element shown below to change the color of the element or to hide the element You can also click the element name to toggle between viewing and hiding the ele ment E Probability 04 21 2013 E E peL 11 57 03 22 2013 E pat 40 41 04 06 2013 E I P amp L 200 00 04 21 2013 Probability Calculation The solid curve plots the underlying symbol s price probability at the expiration date for the option strategy selected using a lognormal distribution based on the expiration date or another date of your choosing current trade price and implied volatility Each point along the curve has an associated price which you can see along the X axis and probability of expiring at that price e The two vertical sliders at the top of the chart are the Lower and Upper Tar gets that can be adjusted from the default 1 1 standard deviation by drag ging side to side The blue Prob Expiring bar at the top of the calculator shows the probability of the option expiring Below the lower slider Between the sliders and Above the upper slider e The price at the bottom in the center of the chart is the price of the under lying when the calculation was initiated Update the underlying data by click ing Refresh below the chart e T
21. e Securities held in a cash account will dis play as or Not Marginable e N A will display if margin requirement data is unavailable e Maintenance requirements for multi leg options will display with the short leg s that has have the higher requirement s A list of maintenance requirements across secur ity types can be found here with maintenance requirements listed on the far right under the heading Schwab Maintenance Req The Margin Maintenance Requirement Lookup tool can be found here login may be required Maintenance Requirement Disclosure Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 373 Positions Cost Total 1 Maintenance requirement data updates every 15 minutes or upon an event that changes your balances or positions such as a trade execution debit transaction etc 2 If you have a special maintenance require ment on your account that is greater than the equity specific requirement then the account level maintenance requirement will supersede the equity specific requirement 3 Stocks trading for less than 3 00 are not marginable 4 Margin requirements may be changed due to concentrated positions non diver sification changes in market conditions or at Schwab s discretion The cost for the position For more information on Cost and Trade Lots see Trade Lot Details Important Information Regarding Cost Informatio
22. ted to account for any corporate actions that would currently adjust cost basis Examples include forward splits reverse splits etc However it is NOT adjusted by wash sale processing Trans Cost Share Reflects cost inclusive of any fees commissions of the original opening trans action on a per share basis This value is adjusted to account for any corporate actions that would currently adjust cost basis Examples include forward splits reverse splits etc However it is NOT adjusted by wash sale processing Trans P amp L Reflects the profit or loss based on the ori ginal opening transaction that had not been adjusted by wash sale processing Disallowed Loss The total dollar value of a disallowed loss for a lot that has been wash sale pro cessed Cost Basis Method The Cost Basis Method CBM determines how non option closing transactions choose which of your shares to sell whether it s First in First out or you use the Tax Lot Optimizer to have the software figure out the most beneficial cost basis configuration Within StreetSmart Edge you can set your cost basis method for individual orders from the Cost Basis Method column of the Order Status tab or from the Special Conditions drop down when placing an order lt 10 learn more about the cost basis methods available to you and how cost basis affects your tax circumstances log on to Schwab com and go to Guid ance gt Taxes gt Cost Basis Repo
23. ting up a Smart order see Placing Equity Trades e Trading is available during standard market hours 9 a m to 4 p m ET Users who want more control over the routing of their orders may wish to enable Direct Access trad ing for their accounts Direct Access allows you to place trades via ARCA and NSDQ See the Direct Access Route Comparison to see how the two venues differ e Trading is available from 7 a m to 8 p m ET and does not have separate sessions for pre or post market trading e Direct Access trading entails certain risks and responsibilities As a result we have estab lished special eligibility requirements for Direct Access trading Orders can be entered from 8 05 p m on the pre vious trading day to 9 25 a m ET but trades are not eligible for execution until the session officially opens for trading at 8 00 a m ET e For much more on pre market trading see Extended Hours Trading After Hours Orders can be entered from 4 05 p m to 8 00 p m ET but trades are not eligible for execution until the session Officially opens for trading at 4 15 p m ET e For much more on after hours trading see Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 126 Routing Venues Extended Hours Trading Customizing the Level I Display You can customize what if any Level I displays in the Trade tool putting the most important information for your
24. 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 120 ditions Unlike All or None AON or Fill or Kill FOK instructions IOC orders may result in a partial execution 9 Depending on your order settings certain Special Conditions may be avail able Choose these from the Special Conditions drop down Available Special Conditions o Min Quantity Specifies the minimum execution quantity the cli ent will accept with any amount up to the specified Quantity thereafter Use only for orders over 200 shares When checked the amount field can be changed but the amount must be at least 200 shares Designating minimum shares applies to the first fill only o AON All or None Attempts to fill the entire amount of an order or none of it during the time limit specified AON orders do not require immediate execution o DNR Do Not Reduce This instruction only pertains to a reg ular Cash Dividend event Corporate Action Types ie Cash Dividends This condition is used to keep the order price from being adjusted when a reg ular cash dividend event occurs A domestic equity or ADR can be marked DNR to prevent this adjustment All GTC buy limit and sell stops will have their price adjusted on the ex date if the order is not marked DNR Pink sheets and foreign securities with 5 letter symbols ending in F are not adjusted Stock Dividends All GTC buy limit and sell stop orders will have th
25. 3 Click Add or press Enter to populate the list with the symbols you ve entered TIP To make entering option symbols easier use the copy and paste feature Start a trade from a Watch List Watch lists offer two ways to load a trade ticket with a Watch List symbol e Click the bid or ask quote to load the All in One Trade tool order ticket The symbol will load along with a limit order at the price you clicked If you click the bid quote the order action will automatically choose Sell if you hold a position in the stock or Short if you do not Clicking the ask quote will set up a Buy order if you don t hold a position in the stock e Right click on the symbol row and select Load Trading Tool with sym bol or Load Symbol Hub with symbol Name or Rename a Watch List 1 Double click on the tab name You can also right click on the tab name and select Rename tab name Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 362 2 The name field becomes highlighted and editable and you can type a new name 3 Press Enter to finalize the new name TIP You can also rename one or more saved Watch Lists by right clicking on the tab name and selecting Manage Saved Watch Lists Click the pencil icon gt next to the list you wish to rename Grouping Symbols in a Watch List Organize your Watch List symbols by grouping them together There are two primary ways to group symbols in your Wa
26. 424 Futures Symb ls o ea EE EEA ESEE ES PREI EIE 424 Trader s Marketplace oo ccecciccecct sees oeusddc4ch abeeccace dodaeteedocaveedencesetcdedessa 425 ive Tess See se Abeer icce cote hat cee caus oe eadaceaa todas she pin ceadeteewiea ene asmesies 426 TEAMING oea ere te aie pee cei ise eee eon eee 426 System Requirements 2 0 0 2 e cece ccc ecccccccccccececeeeseesceseeetsetssessees 427 BPW eer eee eae es ee ca ee ee 428 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 6 Welcome to StreetSmart Edge StreetSmart Edge is designed to think like a trader to help you take on the mar ket It is intuitively designed with innovative tools that work together making it easy to use and flexible to grow with your needs while retaining the soph istication and power you expect from a Schwab trading platform In StreetSmart Edge you ll find e Integrated tools within easy reach and common workflows to help you go from opportunity to action quickly e Greater account and order control to monitor performance easily and better manage market exposure e Flexible trading environment that is easy to configure yet versatile enough to adapt to changing needs e Enhanced research and analysis tools that provide information at your fin gertips reducing the fatigue of repeated jumps from a desktop application to the web or Schwab com e Approachable intuitive design so you spend less ti
27. Advancers Boston ADVB Advancers CBOE ADVCO Advancers Midwest ADVM Advancers NYSE ADVN Advancers Pacific Options ADVPO Advancers NASDAQ NMS ADVQE Advances NASDAQ Listed Stocks ADVT Advancers NASDAQ OTC Bulletin Board ADVUE Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 418 Advancers Philadelphia ADVX Advancers Philadelphia Options ADVXO ISE Spot AUD USD AUM ISE FX Australian AUX NASDAQ OTC Index Banks BANK S amp P Bank Index Bix BIX KBW Bank Index USD KBX BKX Block Trades AMEX BLKA Block Trades NYSE BLOK PHLX Computer Box Maker Index BMX ISE FX British Pound BPX ISE FX Brazilian Real BRB AMEX Biotechnology Index 15 Stocks BTK ISE FX Canadian Dollar CDD S amp P Chemical Index CEX CEX Morgan Stanley Consumer Index CMR CMR NASDAQ Composite Index COMPX Decliners AMEX DECA Decliners AMEX Options DECAO Decliners Boston Stock Exchange DECB Decliners CBOE DECCO Decliners Midwest DECM Decliners NYSE DECN Decliners Pacific Stock Exchange DECP Decliners Pacific Stock Exchange Options DECPO Decliners NASDAQ NMS DECQE Decliners NASDAQ Listed Stocks DECT Decliners NASDAQ OTC Bulletin Board DECUE Decliners Philadelphia DECX Decliners Philadelphia Options DECXO AMEX Drug Index 1 10 Value DGL Dow Jones Composite Index Actual Value DJC Dow Jones 30 Industrial Index Actual Value DJI Dow Jones Transportation Index
28. Analyst Ratings S amp P Earning amp Dividend Ranking Recommend Buy Recommend Buy Hold Recommend Hold Recommend Hold Sell age performer and fall in price Measures the historical growth and stability of a company s earnings and dividends for the past 10 years The ranking system has various grades e A Highest e A High e A Above Average e B Average e B Below Average e B Lower e C Lowest e D In Reorganization and e NR No Ranking NOTE An NR designation no ranking is given to common stocks with insufficient historical data or because the stock is not amenable to the ranking process As a matter of policy Standard amp Poor s does not rank the stock of foreign companies investment companies and cer tain finance oriented companies So as not to be biased by future expectations the rankings are based on past events only The S amp P Ranking System does not use earnings and dividend estimates An S amp P ranking is not a recommendation to buy or sell the stock of a company S amp P common stock rankings should not be confused with debt quality ratings Percentage of Buy recommendations from ana lysts covering the issue Percentage of Buy Hold recommendations from analysts covering the issue Percentage of Hold recommendations from ana lysts covering the issue Percentage of Hold Sell recommendations from analysts covering the issue Copyright 2010 2
29. Co Inc All rights reserved Member SIPC 1015 6153 363 e Open watch lists created in or provided with StreetSmart Edge by select ing one of the choices in the Open Watch List menu item e Open a watch list that has been saved to a file by selecting Open Watch List from File then find the file where it is saved on your computer Select the file and click Open Reordering Symbol Lists Manually organize the symbols in a list by dragging and dropping symbols within a list Click a symbol and drag it to a new position in the list A black bar indicates where the symbol will be located when you release the mouse button Duplicate a Watch List If you want to open another tab identical to an existing Watch List right click on the tab at the top of the Watch List and select Duplicate tab name Close a Watch List Tab Click the X in the tab to close it or right click on the tab name select Close tab name Closing a tab removes it from your Watch List window but does not per manently delete it Delete permanently a Watch List Delete one or more saved Watch Lists by selecting Manage Saved Watch Lists from the right click menu and clicking the x next to the list you wish to delete Clear ALL symbols from a Watch List 1 Right click on the tab of the Watch List you want to clear and select Clear All Symbols 2 Confirm that you wish to permanently delete all symbols from this list Export a Watch List 1 Right click
30. Divergence Histogram MACD His togram A variation of the MACD that plots the difference between the signal line and MACD line Changes in the spread between these two lines may be spotted faster using the histogram display potentially leading to earlier trading signals Multiplier The premium is multiplied by the multiplier multiplied by the number of contracts to determine the actual cost of an option purchase The multiplier is 100 in the case of standardized options for both equity and index options however stock splits can change the multiplier The multiplier is the number of shares that an equity option will convert to if exercised Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 405 NASDAQ Formerly known as the National Association of Securities Dealers Automated Quotations system designed to facilitate over the counter stock trading The NASDAQ is now an exchange and is no longer an acronym NASDAQ Composite Index The NASDAQ Composite Index is a market capitalization weighted index of over 5000 stocks Because it is weighted by market capitalization large companies such as Microsoft Intel WorldCom Sun Microsystems Dell Computer and Oracle dominate the index With such large portion of the index dominated by tech nology stocks the NASDAQ Composite is more a barometer for the technology sector than the broader market NASDAQ Exchange Consists of More than 3 900 co
31. Interest total number of puts by the total number of calls for an underlying stock or index based on open interest Put Call Ratio Volume Calculates the Put Call ratio by dividing the total number of puts by the total number of calls for an underlying stock or index based on the trading volume of the current or most recent trading session Ratio Total number of shares available at the Inside Bid vs the Inside Ask Spread Difference between the bid and the ask Volume Number of shares or contracts traded for the day Customizing the Market Depth Display There are several Market Depth display settings you can customize to see exactly the information you need All can be found in the All in One tool Trade tool or Symbol Hub by right clicking in the Market Depth or Time amp Sales area and selecting Market Depth Settings e Scroll bars To display a scroll bar in the Bid Ask or Time amp Sales columns right click in the column and select Show Scroll Bars e Colors 1 From the right click or Actions menu select Colors 2 Inthe Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to the ori ginal colors e Font 1 Adjust font settings by right clicking in the Market Depth display Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 128
32. Member SIPC 1015 6153 112 Stock amp ETFs Tab Features Market Depth Bid Ask tings window Hover your mouse pointer over the Estimated Cost to open a pop up with a link to Edit Fee Calculation You can also access the fee calculations under Settings in the main menu Shows the depth of all bids and offers in a stock Each line shows the market center the price at which they are bidding or offering and the num ber of shares they are making available at that price Market Depth data is available to you for a fee if you wish to subscribe to the service However the fee may be waived if you meet certain eli gibility requirements For additional inform ation please contact your Schwab Active Trader Team NASDAQ quotes and ECN quotes are in upper case and ECN book quotes when the book is turned on are in lower case Other non NASDAQ quotes are noted with an asterisk Customize The Market Depth and Time amp Sales display is customizable To learn more see Cus tomizing the Market Depth Display Exchange Codes BSE Boston Stock Exchange CIN Cincinnati Stock Exchange CSE Chicago Stock Exchange NSDQ NASDAQ NYS New York Stock Exchange OTC Over the Counter OTCBB Over the Counter Bulletin Board PHS Philadelphia Stock Exchange PSE Pacific Stock Exchange ARCA CBOE Chicago Board Options Exchange BATS BATS Exchange BATY BATY Exchange EDGA EDGA Exchange EDGX EDGX Excha
33. Member SIPC 1015 6153 370 Extended Quotes by the total number of calls for an underlying stock or index based on the trading volume of the current or most recent trading session After Hours Chg Change from today s close to last after hours trade price After Hours Chg Percent Change from today s close to last after hours trade price Today s Close Today s closing price If before market close shows VWAP Volume Weighted Average Price measures the average price of a stock s trades for the day over a given period of time VWAP is calculated by adding up the dollars traded for every trans action price multiplied by number of shares traded and then dividing by the total shares traded for the day Dollar Volume The dollar amount of shares contracts traded for the day ona security or options contract Cal culated as VWAP Volume Weighted Average Price multiplied by the day s total volume Imbalance Information NASDAQ Only Open Imbalance Number of opening shares that would remain unexecuted at the current reference price and the side of the imbalance buy sell or none if there is no imbalance Open Far Open Crossing price at which orders in the open ing book would clear against each other Open Near Open Crossing price at which orders in the open ing book and continuous book would clear against each other Open Ref Open price within the inside at whi
34. Order Status it will completely replace the column that was there If it is already in the Order Status display the two columns will swap places e You can also arrange column order from the Columns and Settings window available in the right click menu Check the columns you want to display in the Order Status tab All chosen fields display in the Column Order display on the right with the most recently selected column at the bottom of the list Click a column name and use the Up Down buttons to move the column Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 47 into a new position e For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window For more in depth descriptions of each column see Order Status Column Descriptions Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current Order Status tab or to a current and future Order Status tabs The default is to apply the settings only to the current tab but if you prefer the settings to apply to all select Apply to all Order Status tabs at the bottom of the Columns and Settings window before clicking OK Messages Use the Messages tool to stay informed about changes to order status market status notifications from Schwab and more You may have up to 8 Messages tools open at a time The tool consists of tw
35. Percent Change from today s close to last after hours trade price Average daily volume over the last month 1 month 21 days The dollar amount of shares contracts traded for Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 91 Extended Quotes the day ona security or options contract Cal culated as VWAP Volume Weighted Average Price multiplied by the day s total volume P C Ratio OI Open Interest Put Call Ratio calculates the Put Call ratio by dividing the total number of puts by the total number of calls for an under lying stock or index based on open interest P C Ratio Vol Volume Put Call Ratio calculates the Put Call ratio by dividing the total number of puts by the total number of calls for an underlying stock or index based on the trading volume of the current or most recent trading session Today s Close Today s closing price If before market close shows the last trade Volume Weighted Average Price measures the average price of a stock over a given period of time VWAP is calculated by adding up the dol lars traded for every transaction price mul tiplied by number of shares traded and then dividing by the total shares traded for the day Trade Lot Details Lot Details shows a breakdown of each lot that comprises an open position amp Open this window by right clicking the next to a position in the Positions tab of
36. Periods with multiple different corporate events will be displayed as ce e Hover your mouse over the corporate event flags to see a pop up with more details on the event s e Earnings Announcements and Earnings Restatements will dis play onthe dates they were made public so you can see the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 277 effect of each individual event on the price action Announce ments and Restatements are differentiated in the pop up that displays when you hover your mouse over the Earnings flag E Apply Settings to All Charts e Applies the current chart s settings to all existing charts in your application All new charts will use these settings by default as well e The software will ask you to confirm this decision as clicking OK will overwrite all other chart settings you may have estab lished Chart Studies Chart Studies use a stock s price movements volume and other historical information to attempt to find patterns that may indicate shifting price trends By learning what a particular study may be indicating and then applying that study to your charts you may be able to identify trading opportunities points of support or resistance at certain price thresholds price trends and more Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its paren
37. Sold Price Prev Close short positions as Prev Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 75 Available Values Unrealized P amp L Bank Sweep Margin Equity Equity Percentage Descriptions Close Bought Price e If calculated from open calculated for Long positions as Sold Price Open Price short positions as Open Bought Price e Ifthe position was entered today then the P amp L here follows the Today s Net Realized P amp L calculation above EXAMPLE Position XYZ has 150 unrealized profit com ing into the day During the day the profit on XYZ increases to 400 and the position is closed out Today s Realized P amp L would reflect 250 if this were the only position closed for the current day 400 total profit minus 150 profit not from today The total change gain or loss for all your equity and option positions from the original entry prices this is the difference between the cost and proceeds The cash balance of funds that have been moved into the Schwab Bank Sweep feature The dollar value of marginable securities in your margin account less the amount you owe Schwab plus any cash in your margin account This is the liquidation value of your margin account but does not include option positions segregated money market funds or cash not held in the margin account Mar gin Equity represents the total amount
38. an up arrow will appear 2 Shows the current status of the Market Maker K closed O open L open non refreshed in the morning and closed in the evening Displays in Market Depth the time that the price server received the quote 4Displays the time of each print Highlights bid ask quote changes in the Time amp Sales panel SDisplays the venue in which the trade was reported Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 130 Market Depth Settings Time amp Sales is color coded e Green Prints at the inside Ask e Red Prints at the inside Bid e Gray Prints in between the inside Bid Ask e Yellow Prints above the inside Ask e Purple Prints below the inside Bid Gray Highlight Inside quote change Watches Watch ARCA and Highlights ARCA and NSDQ quotes in the Market NSDQ Depth Watch Market Par ticipants Enter up to 4 market makers or ECNs to highlight in the Market Depth Apply settings to this instance or If you have multiple Market Depth displays and want All instances different settings for each choose Apply to this instance To have these settings apply to all Market Depth dis plays in your layout and all future Market Depth dis plays you add choose Apply to all instances Trading Settings Access the Trading Settings by going to File gt Settings in the main menu or by right clicking in the Trade Ticket area of the S
39. creating a request for the deposit of additional funds Cash Borrowing Also known as Margin Buy ing Power this is the amount of money you can use to trade marginable equities using cash and the margin feature of your account Click Buying Power Details to understand this value for all security types This value is only shown in accounts with a margin feature You will be charged interest on any amount you borrow that exceeds the Available Cash in the account Using cash The maximum amount of money you can withdraw without accessing margin bor rowing The amount is a combination of credits in the account less any cash on hold Cash Borrowing The maximum amount you can withdraw from your account to by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the maximum amount you can bor row against marginable securities held in your margin account Note that recent deposits earn interest and are available for most types of trading activity but are not reflected in your authorization limit until they are cleared This value is only shown in accounts with a margin feature You will be charged interest on any amount you borrow that exceeds the Available Cash in the account Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 65 Balances Fields Settled Cash Avail able to Trade Descriptions Trading
40. if you bought 10 shares of ABC at 90 a share the price would be 90 For monetary trans actions this field will display 0 00 Amount This indicates the total amount of the transaction Numbers inside indicate money was deducted from your account Numbers without the brackets mean money was deposited into your account Commission Displays the commission paid for a specific trans action If no commission applied or if the trade was executed today you will see an asterisk Settlement Date The date by which an executed securities trans action must be settled either by paying for a pur chase or by delivering a sold asset In a regular way delivery of stocks the settlement date is usually trade day 3 business days T 3 Notes If a symbol in the Transactions tab has a note asso ciated with it in the Notes tool the Notes icon F will display Click the icon to see the note s Transactions Columns and Settings The StreetSmart Edge Transactions tab found in the Account Details tool is customizable allowing you to choose which columns of data to display for the transactions in your account as well as the order of the columns Access the Transactions tab Settings window by right clicking in the Transactions display and selecting Columns and Settings or access it from the Actions drop down menu See Column Descriptions for details about each available column Sorting Rows Sort rows by clicking the
41. meters that affect option pricing as calculated in that model in order to see how those changes would affect the prices and Greeks of the options in that chain More on Theoretical e Covered Calculator view shows calculations for Covered Call aka buy write or Covered Put aka sell write trades Commissions and dividends are not included in the calculations so be mindful of their effect and timing More on Covered Calculator View Strike Range The option chain will show potential trades where the difference between the two contract prices is equivalent to the strike range you specify Position to Close For Rollouts select the position you want to roll for ward to a longer term expiration date Near Far Months For Calendar Spreads choose the near month and far month expiration dates Call Put Display View calls and puts either stacked or side by side gu Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Option Chains Columns and Settings Option chains in StreetSmart Edge found in the Trade tool or Symbol Hub are customizable allowing you to choose which colu
42. puts worthless For use when investor anticipates e Upward market direction security appreciation Financial Characteristics e Maximum Loss The difference between the strike prices less the amount received to establish the spread e Maximum Profit Net premium received Objective e Speculative gain The maximum loss on a bull put spread is limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exer cises the low strike put the maximum loss is no longer limited to the premium outlay There is an additional risk associated with the expiration weekend If the short put is assigned while the long is not auto exercised because for example the stock closes between the two strikes the investor ends up witha long position in the stock Bad news during the weekend could force even greater losses on the investor before he can exit the long equity position EXAMPLE Bull Vertical Put Spread Currently XYZ trades at 25 share The investor employs the spread strategy selling one in the money put Strike 30 for 6 00 share and buying one out of the money put Strike 20 00 for 1 00 share Using this strategy the investor receives a cash credit of the difference between the premiums received and the premiums paid 6 1 5 or 500 and this is the maximum profit the investor can earn If the stock rises to 30 00 share the long and short put positions expire worthless and t
43. uses natural workflows and brings commonly used features to the forefront to deliver a sophisticated yet easy to use experience Layouts are more user friendly easier to navigate and more visually appealing Many Traders will benefit from the improved workflow and great new tools Some of the new features you will see are e Symbol Hub which links the most pop ular trade tools together so you can get started without having to add individual tools to your layouts Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 14 What type of help and guidance can I receive for the StreetSmart Edge platform e The Mini Chart Carousel at the bottom of Symbol Hub that allows you to flip through the list of most recently viewed symbols e You can save Chart tabs Watch Lists and layouts as individual files that you can keep as a record or email to friends e You can drag individual tools to other monitors to create secondary layout con tainers on other monitors This gives you the flexibility to customize your work space to best meet your needs and sup port your strategy e StreetSmart Edge has integrated fun damental data in the platform so you do not have to navigate to Schwab com You can access data like P E ratio dividend yield and earnings quickly when you need it e Option traders can now chart Options get Options Participant Top of Book data and view customiz
44. you may do so Only applies to alerts or conditional orders where the variable is Trade P amp L or Share P amp L e Ifthe variable is Share P amp L enter the average share price you paid for the position e It the variable is Trade P amp L enter the total dol lar amount you paid for the position Works only with the Gains and Loses operator and can be applied to a point value or a percentage Trailing Stop Alert or Conditional Order example You are long 1000 shares of XYZ which was pur chased at 20 per share If you have a risk threshold of 10 you would want to be alerted or send an order if the bid for XYZ decreases to 18 per share or 2 less than the highest price reached after the Trailing Stop was entered You enter an Alert or Conditional Order with the Trail ing Stop enabled when the bid is at 20 to trigger when the Bid loses 2 Assuming the bid then increases to 25 per share the Trailing Stop will trig ger when the Bid decreases to 23 per share 25 2 23 per share If the stock never moves above 20 per share for the same type of Alert or Conditional Order it will only trigger if the Bid loses 2 20 2 18 Click Add Another Condition to add up to 2 addi tional conditions to your Alert or Conditional Order e When you select And all conditions must be met at the same time for the alert or order to trigger e When you select Or any condition can trigger the alert or order indepen
45. 00 PM ET 1 order a E File PCX Order E E Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 245 and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients 2 Find the order and right click on it or any of its associated contingent orders to select Edit Conditional Order 3 Inthe window that opens make edits and click Review Order to verify your changes before confirming the order Deactivating Conditional Orders 1 Deactivate conditional orders from the Order Status tab of the Account Details tool 2 Find the order and right click on it to select Deactivate Conditional Order The order will remain in the Order Status tab and can be activated from the right click menu at a later time Removing Conditional Orders 1 Deactivate and delete conditional orders from the Order Status tab of the Account Details tool 2 Find the order and right click on it to select Remove Conditional Order This will deactivate the order and all associated contingent orders and delete it from your Order Status tab TIP You can remove individual contingent orders one at a time by right click ing on those orders instead of th
46. 160 n document titled Characteristics and Risks of Standardized Options Member SIPC All in One Trade Tool The All in One trade tool is the most dynamic advanced trading tool in the StreetSmart family of software offering unprecedented flexibility particularly around option trading workflow While similar to the Trade tool and the trading interface found in the Symbol Hub the special features spelled out below help make the All in One tool especially valuable to option traders amp Open the All in One tool by going to Launch Tools and selecting Trade All in One Tabbed Interface Like most tools in StreetSmart Edge the All in One trade tool has a tabbed interface where you can customize the contents of each tab If you often trade for instance calendar call spreads you can create a Calendar Call tab rather than having to set the Options tab up for calendar call spreads each time e Add a New Tab Click the next to the tabs and select a strategy Strategies available to trade will vary depending on your option trading approval level e Change a Tab Click the drop down arrow next to the tab name and select a different Equity Option Spread or Combo order type or Conditional Order x Vertical Call Iron Butterfly Calls Puts 2 Options Approval Level 3 Equity Option Spreads Combinations Stock ETF Vertical Call Buy Write Calls Puts Vertical Put Sell Write Calls Ca
47. 20 call for 6 00 share and buying an out of the money strike 30 call for 1 00 share Using this strategy the maximum loss is the dif ference between the option strikes less the call premium received 30 20 5 5 or 500 see above The maximum profit an investor can receive is the premium received from selling the call less the premium paid for the out of the money call 6 1 5 or 500 The breakeven price of 25 is calculated by adding the net credit of the spread to the strike price of the short option Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 239 Bear Call Spread Gain Loss at Expiration w G 5 2 z l lt 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will in
48. 205 strike price strike price strike price 0 45 67 50 Los Lower Stock price gt Higher Note Chart depicts strategy at expiration e Maximum Gain 65 00 62 50 0 45 2 05 e Maximum Loss 0 45 e Lower Break Even Lower Strike Price Net Debit 62 50 0 45 62 95 e Upper Break Even Higher Strike Price Net Debit 67 50 0 45 67 05 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 215 Note Commissions have been excluded to simplify the calculations Short options can be assigned at any time and therefore option sellers assume the risk of assignment at any point up until and including expiration Short Butterfly Calls A short butterfly is created by selling a lower strike Call purchasing double the quantity of a consecutively higher strike Call and selling a consecutively higher strike Call In order to be considered a standard butterfly the 3 strike prices involved should be equidistant Example e Sell to Open 1 XYZ 01 17 2015 90 00 Call e Buy to Open 2 XYZ 01 17 2015 95 00 Call e Sell to Open 1 XYZ 01 17 2015 100 00 Call If the strike prices are not equidistant from each other the butterfly is con sidered to be a broken wing butterfly The premium received from selling the outer strikes typically exceeds the cost to purchase the double quantity middle strike therefore a short butterfly is typ ically establish
49. 408 XYZ is currently quoting at 20 bid x 20 05 ask A Primary Peg order to buy XYZ with a limit of 20 05 will be submitted at 20 If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 05 If the order is not executed it will not update beyond the limit price and will remain posted at 20 05 Proxy A proxy is a security or index whose correlation with another security or index is so strong that it is used as a substitute for the other Put Option An option contract that gives the holder the right but not the obligation to sella number of shares of the underlying security at a specified price until the option s expiration date Put buyers hope the price of the underlying security will fall Puts may also be purchased to protect an investment in case the price of the under lying security goes down Put sellers hope the price will stay the same or go up Put Call Ratio Based on CBOE Chicago Board Options Exchange statistics the Put Call Ratio equals the total number of puts divided by the total number of calls All stock and index options traded on the CBOE are included in the calculation Typically there are more calls traded than puts so the ratio is usually below 1 When more puts are traded than calls the ratio will exceed 1 As an indicator the Put Call Ratio may be used to measure market sentiment Quantity The number of shares you want to buy sell or sell short AIBICIDIEIFIGIHILTIJTKILIMINIO
50. Action but tons Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 35 Trade Settings Stock ETF Calls Puts Conditional Orders Actions v Quantity Venue Order Type Limit Price Timing Brackets Special Cond Buy Sell Short Price Incre Controls the increase or decrease in price when using the ment up down arrows for the price fields in the Trade Ticket Auto Cancel The number of seconds that direct ECN amp NSDQ orders are ECN NSDQ live before the system auto cancels them A value of 0 dis ables auto cancel The Auto Cancel is disabled by default Cancel But You can specify whether the Cancel button within all Trade ton Selec tools will cancel the last submitted order for the current tion symbol or cancel all equity orders for the current symbol Com Use these fields to set the equity and option commissions missions to use when estimating the cost or proceeds that will result from the trade You can set commissions per trade or per stock contract depending on your commission structure Tool Limits in Layouts Each tool in StreetSmart Edge can be opened a limited number of instances across all open layout tabs Tools that utilize tabs also have a limit on the num ber of tabs that can be opened in each instance Finally tools that allow you to save templates also have a limit on the number of
51. All rights reserved Member SIPC 1015 6153 17 Troubleshooting FAQ of the picture of the mouse and choose Secondary Button Your mouse is now set up to display the right click menu Here are some frequently asked questions about troubleshooting StreetSmart Edge Why is the download so big I have saved my layouts on the Schwab servers but they are not coming up when I log in from a different computer Why can t I see my saved lay outs Why am I getting admin istrator upgrade requests when using Windows 7 For most clients the download of StreetS mart Edge will be approximately 20MB To ensure a stable easily customized plat form StreetSmart Edge was created within the NET Framework In order for StreetS mart Edge to work on your computer you must have the NET Framework installed This portion of the download is approximately 197MB however if you already have NET Framework it will not be reinstalled You may not always be able to see your com plete layout when you logon depending on the individual computer For example If you saved a layout with the maximum number of Watch Lists while you were working on your primary PC it may not be accessible on your laptop if the system specifications are different In this example if your laptop has less memory and speed than your primary PC you may see a scaled down version of your layout when logging on from your laptop The
52. Co Inc All rights reserved Member SIPC 1015 6153 219 For use when investor anticipates e Neutral outlook e Little to no movement in security price e g sideways channels e Low volatility Financial Characteristics e Maximum Loss Initial Net Debit paid e Maximum Gain Difference between middle strike price and outer strike price less net debit e Loses value with time Objective e Gain from correctly predicting price range at expiration EXAMPLE Long Condor Assume it is June 26th 2014 and Rachael an options trader has identified XYZ as a Stock that she believes will trade within a relatively confined range over the next month Therefore Rachael decides that a Long Condor is an appropriate strategy given her neutral outlook XYZ is currently trading at 85 41 and she believes over the next month or so the stock will trade within a range of approx imately 85 00 88 00 Therefore Rachael decides that the 85 00 and 87 50 Calls are appropriate middle strike prices In addition since the distance between these two strikes is 2 50 she feels that the 82 50 and 90 00 strike prices are appropriate outer strike prices Lastly Rachael selects the July expir ation since it is 24 days away which is in line with her timing forecast Strikes Symbol LastTrade Change Bid Ask Delta Theta Iv y Calls Jul 19 2014 24 days gt 80 00 07 19 2014 80 00 C 5 10 5 55 0 8354 0 0207 24 1549 gt 82 50 07 19 2014 82 50 C 2 97
53. Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 238 option strike prices involved in the transaction less the net premium received when putting on the spread For use when investor anticipates e Declining market security depreciation Financial Characteristics e Maximum Loss The difference between the strike prices less amount received when establishing the spread e Maximum Gain The net premium received e Cash credit Objective e Speculative income generation The maximum loss on a bear call spread is limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exer cises the high strike call the maximum loss is no longer limited There is an addi tional risk associated with the expiration weekend If the short call is assigned while the long is not exercised for example the stock finishes between the two strikes the investor ends up witha short position in the stock Good news during the weekend could force even greater losses on the investor before he can exit the short equity position A margin account is required EXAMPLE Bear Vertical Call Spread Currently XYZ trades at 25 share The investor believes the stock will fall and wants to earn income but does not want to simply sell calls because of the risk involved Instead the investor employs the Bear Spread strategy selling an in the money strike
54. Eastern Time Change in the price from the Open expressed as a point value Change in the price from the Open expressed as a percentage i e difference between Open and Current Price divided by Open Difference between most recent open and close prices expressed as a point value Open Close Difference between most recent Open and Close prices expressed as a percentage 100 Open Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 322 Price Performance Chg from Beg of Mo Open Chg from Beg of Yr Open Chg from 5 day Avg Close Chg from 5 day Avg Close Chg from 6 Day Close Chg from 20 day Avg Close Chg from 20 day Avg Close Chg from 1 Mo Avg Close Chg from 1 Mo Avg Close Chg from 6 Mo Avg Close Close Close Difference between the beginning of the month open price and the Last Trade as of the screen s last update Difference between the beginning of the year open price and the Last Trade as of the screen s last update Difference between the average close for the last five days and the Current Price expressed as a point value Difference between the average close for the last five days and the Current Price expressed as a percentage i e difference between 5 Day Avg Close and Current Price divided by 5 Day Avg Close Change from the close price 6 days ago to the Last Trade as of the screen s last update expre
55. If it is already in the display the two columns will swap places e You can also arrange column order from the Settings window which is avail able when you right click in the tool or from the Actions drop down menu Check the columns you want to display All chosen fields display in the Column Order display on the right Click a column name and use the Up Down buttons to move the column into a new position e For brief descriptions of each column hover your mouse pointer over the column name in the Columns to Display section of your Settings window Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current Momentum tool tab or to a current and future Momentum tabs The default is to apply the settings only to the current tab but if you prefer the settings to apply to all select Apply Setting to all Momentum tabs at the bottom of the Set tings window before clicking OK TIP Because of the way momentum is calculated it may be valuable to have slower moving stocks in a separate tab from faster moving stocks so you can set your Market Speed setting accordingly and get more accurate feedback Momentum Column Descriptions Adjust the settings of your Momentum tool to make it work better for you by click ing the Settings menu option in either the Actions drop down or in the right click menu For more on adjusting settings and managing columns in the Momentum too see Mome
56. Issues Traded NASDAQ NMS Equities ISSQE Issues Traded NASDAQ Listed Stocks ISST Issues Traded NYSE Listed Stocks ISSU Issues Traded NASDAQ OTC Bulletin Board ISSUE Issues Traded Philadelphia Stock Exchange ISSX Issues Traded Philadelphia Options ISSXO S amp P Insurance Index IUX NASDAQ Computer Index IXCO NASDAQ Financial 100 Index IXF NASDAQ Telecommunications Index IXTC AMEX Japan Index JPN S amp P Midcap 400 FLEX OC Settle MDO S amp P Midcap 400 FLEX OCHL Settle MIA Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 420 S amp P Midcap 400 Index MID S amp P Midcap 400 FLEX HL Settle MIH Mini NASDAQ 100 Index MNX AMEX Morgan Stanley High Tech 35 Index MSH AMEX Mexico Index MXY ISE Spot NZD USD NDO CBOE NASDAQ 100 Index NDX NYSE Composite Index NYA ISE FX New Zealand NZD S amp P 100 FLEX Opening Exercise Settle Value OET S amp P 100 Index OEX NADAQ OTC Index Other Financial OFIN PHLX Euro Style Oil Service Sector Index OSX CBOE Crude Oil Vol OVX NYSE ARCA Technology 100 Index PSE ISE FX Mexican Peso PZO Russell 2000 Opening Ex Settle Value RLS S amp P Retail Index RLX CBOE Russell 3000 Index RUA CBOE Russell 1000 Index RUI CBOE Russell 2000 Index RUT Russell 2000 Vol Index RVX ISE Swiss Franc Index SFC S amp P 500 Citigroup Growth Index SGX ISE FX Swedish Krona Index SKA PHLX Semiconductor Sector Index SOX S amp P 500 Spread
57. L variable this P amp L amount is based on the difference between your Original Trade Price and the current bid price times the number of shares you own if you are long on the stock or the ask price if you are short Referencing the example in Share P amp L above your Trade P amp L would be 300 00 If you want to be alerted or send an order to exit your pos ition with a 600 00 profit the Trade P amp L would need to Increase to 600 00 Note P amp L Alerts do not consider com missions or other transaction account costs Change delta variable that is the result of a cal culation e The P amp L variables are the difference between the cost to you and the current price As such you can only use the P amp L variables for secur ities in which you hold a position e Change From Open Close are the difference between the price of the security at the open or the close and the current price Operator The following operators are available depending on the variable e Increases to or above e Decreases to or below e Gains e Loses e Increases from open by e Decreases from open by Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 252 If e Increases from close by e Decreases from close by For the Time variable choose from e is the alert or order will trigger at the specified time e is earlier than alert or order will only trigger prior to this
58. Low 8 69 Close 8 88 Volume 6 171 883 Quick Jumps gt Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 300 Research Tools Symbol Hub The Symbol Hub is a one stop shop for information on a specific symbol where you can get quotes charts fundamental data and news in addition to placing trades It combines many of the tools you can open individually in StreetSmart Edge into one tool so that when you identify a security that interests you you can do all your research and place your trade from one tool if you wish TIP You may display up to 12 Symbol Hub windows across all open layouts at one time Below is a look at each panel of the Symbol Hub from top to bottom Many of the panels in the Symbol Hub have identical features to their stand alone tools such as Charts or news For those panels there is a link for you to jump to that indi vidual tool s section of the help Title Bar and Level I n csco x cy 23 29 4 Cisco Systems Inc After Hours 23 32 Open 23 25 Close 23 395 Vol 39 164 300 High 23 36 Low 23 03 Size 300 X 1000 Bid 23 10 Ask 23 83 Spread 0 73 Stocks amp ETFs Conditional Orders Actions v Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities ref
59. Market Max Floor ted OTC Arca Market Peg Diff Peg Discretion Primary Peg Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 143 Order Type of Hours of Order Order Secur Destin Channel Oper Types Condi ity ation ation tions Types Eastern Traded Time NSDQ Exchang 7 00 a m Limit Day IOC NNM Lis NASDAQ e 8 00 Limit ted p m Invis ible Mar ket Placing a Direct Access Order To place a Direct Access order follow the steps for placing any other equity order but include ARCA or NSDQ as available Venues You must meet Direct Access Eligibility to place Direct Access orders Fractional Shares Direct Access venues do not offer fractional share trading As the quantity field does not allow the input of fractional shares using the Close All checkbox in combination with the Smart or Schwab Pre Market After Hours venue is the only way to send orders to sell fractional amounts Partial Fills If you have Direct Access enabled for your account it is your responsibility to make sure your order is filled to your satisfaction Partially filled orders require a decision on your part to either enter an additional order for the remaining shares or not For Direct Access orders there is always the potential that your order will not completely fill As the default settings have a maximum value of 180 seconds for ECN NSDQ orders it is very possible
60. Market Depth Ask Time amp Sales Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients Stock amp ETFs Tab Features Title Bar Enter the symbol you potentially want to trade and click Go or press Enter The Title Bar is available in several tools and includes some basic price data as well as the Tool Link Icon For more on these features see Title Bar Order Position Indic This area indicates whether your account has an ators order or a position in the current security regard less of security type Order Status Indicator e 6 indicates you have one open order for Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 110 Stock amp ETFs Tab Features this symbol in your account Click the indicator to display a list of all option and equity orders in your account for the underlying symbol The list shows the details of each order price venue quantity etc order number and quantity filled It also gives you quick access links to Cancel Change or Add Edit Brackets for each order Buttons at the top of the list also allow you to Cancel All symbol Equity Orders or Cancel All Open O
61. Pacific Stock Exchange VOLP Volume Pacific Stock Exchange Options VOLPO Volume NASDAQ NMS Equities VOLQE Volume NASDAQ Listed Stocks Third Market VOLT Volume NYSE Stock Exchange VOLU Volume NASDAQ OTC Bulletin Board VOLUE Volume Philadelphia Stock Exchange VOLX Volume Philadelphia Stock Exchange Options VOLXO CBOE Emerging Market Volatility Index VXEEM Brazil ETF Volatility Index VXEWZ CBOE NASDAQ 100 Volatility Index VXN AMEX Airline Index XAL PHLX American Gold and Silver Index XAU AMEX Securities Broker Dealer Index XBD AMEX Computer Technology Index XCI PHLX Australian Dollar XDA PHLX British Pound XDB PHLX Canadian Dollar XDC PHLX Euro Index XDE PHLX Japanese Yen XDN PHLX Swiss Franc XDS PHLX New Zealand Dollar XEO Euro S amp P 100 Index XDZ AMEX Institutional Index XII AMEX Major Market 1 10 Value XLT AMEX Major Market Index XMI AMEX Natural Gas Index XNG AMEX Oil and Gas Index XOI Mini S amp P 500 PM Settle XSP Mini S amp P 500 XSPAM North American Telecommunications Index XTC ISE FX Yen Index YUK Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 423 Futures Symbols The following tables list the Monthly Code and Root Symbols for Futures con tracts available in StreetSmart Edge NOTE Futures symbols in StreetSmart are created in four parts root sym bol month code year code The year code is displayed
62. Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Ratio Spreads A strategy consisting of simultaneously buying and selling an unequal number of option contracts with different Strike prices but with the same underlying secur ity type long and short call options or long and short put options and expir ation date When a ratio spread has more short options than long options simply called a ratio spread it has substantial or unlimited risk of losses In a ratio back spread the long side has the higher number of contracts and the risk is lim ited Ratio spreads may be opened at a credit or debit and may have a bullish bearish neutral or dual nature Bull Call Ratio Spread This strategy requires the investor to purchase call options at a particular strike price and sell a greater number of higher strike calls with the same underlying and expiration date Thanks to the extra short calls it is often opened at a small debit to slight credit This strategy is often used when one is slightly bullish A bull call ratio spread delivers maximum profit when the stock trades at the higher strike price at expiration For use when investor anticipates e Moderately rising price of underlying security if short calls out of the money at open e Decreasing volatility Financial Characteristics e Maximum Loss Unlimited e Maximum Gain Sui h7 Siow number
63. Review Order to review the order and then Place Order to send the order Main Menu The main menu at the top of your StreetSmart Edge window provides access to global tasks in the software such as managing your layout and general settings It also has easy linking to Schwab com and both Live Help and software help FILE Login If the software is open but you are not logged in and a login window is not open this will open a login win dow for you Once you are logged in if you have multiple accounts associated with your login you can switch between them via the account number drop down in the title bar of the window This area also indicates whether you are in Live or Demo mode Live Demo Mode Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 28 FILE Logout Save all Layouts and Settings You can log in to Live Mode or choose Demo instead and take advantage of using the software with real time data without the risk of making mistakes in your live account e Get familiar with all aspects of the software indicators chart confirmation messages set tings etc e Practice entering orders quickly including chan ging share size price and execution venue e Observe the Market Depth information the movement of Market Makers and ECNs e Correlate price movements on a stock with mar ket or sector movements e Learn what momentum may look like in th
64. Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 158 Multi Leg Options e Inthe All in One tool you can add legs to equity or single leg option orders to create strategies and the strategy will adjust as you change the contents of the trade ticket You can also select a strategy from the drop down menu in the tab name and the trade ticket and option chain will reflect the new strategy e The Trade tool or Symbol Hub place multi leg orders in the Options tab by changing the Strategy Selector from Calls amp Puts to one of the multi leg strategies provided Using the defined StreetSmart Edge Option strategies orders can be entered more quickly and with potentially less mar ket risk than by legging in to the strategy e For step by step instructions on placing multi leg option orders see Placing Option Trades Multi Leg TIP The types of option strategies available to you will depend on your options approval level which is displayed in the upper right corner of the Options tab To inquire about raising your options trading level contact a Client Service Rep resentative lt For a demonstration and more information on Option Trading visit the Train ing page The basics of option trading in StreetSmart Edge are as follows click the links to get more information on each area Pick your Strategy Vertical Call Iron Butterfly Calls Puts 2 Options Approval Level 3 Equit
65. Share may be useful in comparing com petitors within the same industry Growth in annual Earnings Per Share year over year Compounded EPS growth over 5 years Compounded earnings growth rate pro jected for the next 5 years Trailing 12 month Price to Earnings ratio divided by 5 year projected growth rate Growth in dividend payouts year over year Growth in quarterly sales year over year Growth in annual sales year over year Growth in annual sales compounded over 5 years Trailing 12 month total sales for a secur ity Sales per weighted average share out standing for either the previous fiscal year or trailing 12 months EBITDA ttm Earnings before interest taxes depre ciation and amortization revenue expenses excluding interest taxes depreciation and amortization Earnings Before Taxes Earnings before taxes revenue expenses excluding taxes Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 358 FINANCIAL METRICS Net Income Normalized Earnings Before Taxes Normalized Net Income Total company earnings after all expenses are subtracted from revenue Earnings before taxes normalized or smoothed over a period of time Net income normalized or smoothed over a period of time EPS excl extraordinary items Earnings per Share excluding extraordin EPS Normalized Cash Flow Share ttm Cash Share Book Value Share T
66. Shows a simple line chart based on the Close price Mountain e Shows a line chart with the space beneath the line shaded in Also based on the Close price Point amp Figure e This unique style of chart provides you with an alternative to time oriented charts by giving a view of the symbol based purely on price movement e When selected you can choose how to display the following items for Point amp Figure Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 269 o Box size The price range for each box Enter a price increment between 01 and 1000 or choose ATR average true range ora pre set interval o Using either High Low or Close method which determines the price point used as the basis o Reversal amount from 1 to 5 which determines how many boxes the stock price has to move in the opposite direction to warrant a column reversal When a reversal happens a new column starts next to the current one and moves in the opposite dir ection until it hits another reversal o You can also turn the grid on or off by checking or unchecking Display Grid e Within the rising and falling columns of daily Point amp Figure charts there are letters and numbers Since Point amp Figure charts technically don t include time these designations are used for reference January through September correspond with 1 9 and A B C are assigned to October through Decem ber r
67. Special Conditions o Min Quantity Specifies the minimum execution quantity the cli ent will accept with any amount up to the specified Quantity thereafter o AON All or None Attempts to fill the entire amount of an order or none of it during the time limit specified AON orders do not require immediate execution 13 Similarly to enable Brackets for your order click the Brackets drop down See Brackets Overview for more information on the Brackets feature 14 Click Review Order if you have not turned off order verification 15 If the order settings are correct click Place Order To edit the order click Edit Order To start over completely click Do Not Place Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Placing Option Orders Multi Leg The steps for placing a multi leg option order vary depending on the strategy you are using but following are the general steps with links to more details When one or more of the strategies requires further explanation on a particular step it is called out beneath the step Some steps are different between the All in One tool vs t
68. Status Displays the current status of your order filled open cancelled etc Open orders display a green indicator filled or canceled orders display a red indicator and con tingent orders are indicated by an orange indic ator The parent row for an open bracket order will display a blue indicator 1The most common instance when this may occur is when liquidating the under lying security where the position is held as either an equity right warrant con vertible or a restricted stock In these circumstances the securities are not in an acceptable form for delivery on settlement date Note that you must file an exer cise for the right warrant convertible or restricted stock before your order to liquidate the underlying security can be marked as Short Sell Exempt Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 44 Order Status Symbol Action Change Yes No Cost Basis Method DRI Notes Order Number Price Quantity Quantity Filled At For orders with brackets and for conditional orders click the arrow to view the contingent portions of the order The unique 1 5 characters used to represent the security Symbols are defined by the different markets or exchanges Sometimes a security might not have a symbol in which case an internal Schwab reference will be used Displays the action type of the order Buy Sell Buy to Open etc Indi
69. Studies panel of Chart Settings remove the check next to the name of the study You can always check it later if you want to display it again Remove a study e Right click either on the study line or the study name at the top of the chart or pane and select Remove You can also mouse over the overlay symbol and click the X next to it Colors Built in Colorsets e The software comes with Light and Dark colorsets which you can choose from the Load Colorset drop down and click Load to apply the change to your chart Custom Colorsets e You can also customize the colors yourself Each object for which you can change the color is listed Click the colored square next to the object name to view your choices Select a different color if you wish e Save your custom colorset by typing a name in the Save Col orset field and clicking Save e Load your custom colorset from the Load Colorset drop down when you want to use it again Study Colors 1 To change the colors of any or several of the studies you have open click Study Colors 2 The View All Studies window will open and in the Selected Studies panel you will see all your studies and symbol over lays listed You can click on each one and change their colors and any other settings Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 274 TIP You can also change a study s colors by right clicking on the study s char
70. Sub Industries GICS Global Industry Classification Standard Sub Industry classification Sub Industry is the most specific category used Sectors are composed of Industries which are composed of Sub Industries Net income divided by the average number of shares outstanding for a company for the last 12 months Ratio of company s previous close to earnings over the last 12 months The higher the P E ratio the more the market is willing to pay for each dollar of annual earnings Estimated P E Ratio using forecasted earnings Opening price of the current market session Closing price of the previous market session Difference between high and low for the day Difference between 52 week high and 52 week low Volume Weighted Average Price measures the average price of a stock over a given period of time VWAP is calculated by adding up the dol lars traded for every transaction price mul tiplied by number of shares traded and then dividing by the total shares traded for the day Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 353 DETAILS Avg Volume 1 month Average volume for the stock over the last month Put Call Open Int Open Interest Put Call Ratio calculates the Put Call ratio by dividing the total number of puts by the total number of calls for an under lying stock or index based on open interest Put Call Volume Volume Put Call Ratio calculates
71. Volume Bid Size Ask Size Open Int Change Last Size Last Time Chg Open Chg Open Open High Option strike price the price at which the owner of an option can purchase call or sell put the underlying security Stock option or index symbol Price of last trade Change from Previous Close to Last Trade Current inside Bid price Current inside Ask price Midpoint between Bid and Ask Number of shares contracts the security has traded for the day The quoted size of the inside bid price The quoted size of the inside ask price Open Interest is the total number of outstanding options contracts that have not yet been closed Percent change from Previous Close to Last Trade Size of last trade Time of last trade Change from Open to Last Trade Percentage change from Open to Last Trade Opening price for the day Highest price the security has traded at for the day Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 176 Quote Data Low Prev Close Ending Ask Ending Bid Ending Mid Intrinsic Value Time Value Greeks IV IV Ask IV Bid Delta Lowest price the security has traded at for the day Closing price from previous market session Ending Ask price of the market session Ending Bid price of the market session Ending Midpoint price of the market session The value by which the option is in the money c
72. XYZ 20 strike option is sold for 6 and the stock closes under 20 the option expires worthless and the investor can pocket the entire 6 The break even point for the strategy occurs when the price of XYZ is at 26 Short Call Gain Loss at Expiration 5 0 5 GAIN LOSS in dollars 5 10 15 20 25 30 35 STOCK PRICE in dollars Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 198 Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Straight Puts Straight Puts refers to the purchasing or selling of put options to open a position This strategy is also commonly referred to as Long or Short Puts Generally thes
73. and choosing Show Current Session Message Sorting Because messages are presented in a fixed order based on date and time sort ing by columns is not available in the Messages tool Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 49 Alerts Alerts Alerts are designed to notify you when certain market conditions occur They can help you manage risk on open positions or alert you to opportunities as favorable market conditions appear depending on the type of conditions you include in the alert Alerts can also be a good stepping stone to using Conditional Orders as they can help you learn to set up condition statements without the risk of orders being sub mitted amp Alerts are managed from the Alerts tab of the Account Detail tool TIP The alerts tab does not initiate orders Use the Conditional Orders tab in the Trade tool or Symbol Hub if you want to send an order when your conditions are met lt For a demonstration and more information on using Alerts visit the Training page Getting Started e Before setting alerts please read the Alerts Guidelines topic for important information regarding alert behaviors you should be aware of e You can also customize the column display in your Alerts tab See Alert Columns for more information on column settings Create Alerts e Create an alert by clicking Create Alert at the top of the Alerts tab e You can also right
74. and close and OHLC open high low and close Bear Trap A bear trap occurs when prices break below a significant level and generate a sell signal q v but then reverse course and negate the sell signal thus trapping the bears that acted on the signal with losses Below the Market A limit order to buy or sell a security for a specific price that is lower than the cur rent market price Buy orders may be placed below the bid in an attempt to pur chase at lower prices However if the market does not reach these prices the order will go unfilled Below the Money Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 390 For straddles and collars strike prices of the call and the put are below the cur rent price of the underlying security Beta Beta is a measure of the security s systematic or market risk The level of the beta indicates the degree of correlation between a security and a market bench mark usually the S amp P 500 The market is the benchmark and has a beta of 1 A beta greater than 1 is more volatile than the overall market while a beta less than 1 indicates that the security s price is more stable than the market in gen eral and over a long time period Bid The bid price is the displayed price at which a market maker or specialist offers to buy a stock Black Scholes Option Pricing Model A model used to forecast the price of an option Blue Chip A
75. any pos itions closed during the current day TIP For historical gain loss data please log on to your account at Schwab com Go to Accounts gt History gt Realized Gain Loss under which you can view realized gain loss for a custom period of time amp Find the Realized Gain Loss tab in the Account Details tool lt gt Get a demonstration and more information on the Realized Gain Loss tab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 99 Columns As with most Account Detail tabs the Realized Gain Loss tab is customizable allowing you to choose which columns of data to display as well as the order of the columns Access the Realized Gain Loss tab Settings window by right click ing in the Realized Gain Loss display and selecting Columns and Settings or from the Actions drop down menu See Column Descriptions for details about each available column Sorting Rows Sort rows by clicking the header of the column on which you want to sort An arrow next to the column name indicates the sort direction ascending or des cending e If Auto Sort in Real Time is checked in Columns and Settings changes to data in the sort column will affect the current sort order in real time e For example if you have your Realized Gain Loss sorted alphabetically by symbol when you close a position it will display in the Realized Gain Loss tab and the list will automatically adjust it
76. arrange column order from the Columns and Settings window which is available by right clicking in the option chain Check the columns you want to display All chosen fields display in the Column Order display on the right Click a column name and use the Up Down buttons to move the column into a new position e For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current option chain display or to a current and future option chains The default is to apply the settings only to the current tab but if you prefer the settings to apply to all select Apply to all Option Chain tabs at the bottom of the Columns and Settings window before clicking OK Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 175 Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Options Chain Column Descriptions Quote Data Strike Symbol Last Trade Change Bid Ask Midpoint
77. as the aver age of all estimates The number of estim ates used in the calculation is displayed in the Est column Actual Annual EPS Actual annual Earnings Per Share Previous Annual EPS Earnings Per Share for the previous year Surprise Difference between estimated and actual earnings for the previous year DIVIDENDS Latest Quarterly Div Amount of latest declared dividend Payable Payment date of latest declared dividend Annual Dividend Yield Dividends paid by company over last 12 months as a of Previous Close Consecutive Dividends Year since cash dividends have been con Since tinuously paid Recent Dividends Shows up to the last 4 dividend payments in dollars per share MOST RECENT SPLIT Most Recent Split Date and rate of latest stock split GROWTH METRICS EPS Growth yoy Growth in annual Earnings Per Share year over year Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 355 GROWTH METRICS EPS Growth 5 yrs Compounded EPS growth over 5 years Projected EPS Growth 5 Compounded earnings growth rate pro yrs jected for the next 5 years Projected P E Growth 5 Trailing 12 month Price to Earnings ratio yrs divided by 5 year projected growth rate Dividend Growth yoy Growth in dividend payouts year over year Quarterly Sales Growth Growth in quarterly sales year over year yoy Annual Sales Growth yoy Growth in annual sales year
78. average as High Low Close Close 4 Istudy calculates the average as the midpoint between the high and low prices for each period Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 271 2 If you wish enter a name in the Label field to help you identify it on the chart 3 Make any adjustments you wish to the available settings 4 Draw your line or object on the chart 5 Click Exit Draw Mode or collapse the Chart Settings panel by gt clicking the handle t when you re finished Edit a drawn line or object 1 Right click on the line so it becomes bold 2 Inthe menu that displays choose Edit 3 Inthe edit window you can change the line color style weight and any other settings associated with that object Move or resize an object e TO move an object to a new position in the chart click on it to make it bold Then click and drag the object to a new location on the chart e For objects that are re sizeable like shapes and trend lines you will see square anchors that you can click on and drag to resize the object Hide an object without deleting it e Right click on the name of the object at the top of the chart and select Hide e If there are multiple instances of an object selecting Hide means all objects of the same type will be hidden So if you have 2 Segment Lines drawn and you chose Hide Segment line 2 both lines will be hidden Rem
79. be used on a Mac computer with either a Windows emu lator or a cloud based solution The cloud based solution uses the Internet to access StreetSmart Edge so the program can be used with non Windows based computers Call a Schwab Client Services Specialist at 800 435 4000 to inquire about accessing the cloud based version of StreetSmart Edge You can run StreetSmart Edge on your Mac by installing a Windows emulator which is a program that allows you to run Windows based programs on Mac OS computers Parallels Desktop 7 for Mac is an example of an emulator that allows you to run Windows Printing Printing is available in certain StreetSmart Edge tools Currently the Chart News Screener Plus Messages Web Browser Account Details and Watch List tools amp Access the Print feature via the right click menu of the screen you wish to print The Print menu has the following choices Page Setup Page Setup Format amp Options Orientation e Choose Portrait vertical or Landscape horizontal orientation for the page e Scale large images down or small images up to 200 for optimal printing e Choose Shrink to Fit Page Width to auto matically make the print area fit the size of the page being printed Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 428 Print Options Gridlines are enabled by default and will be included in your print jobs The rest of the Pri
80. brackets whether on an order or a position the starting price is based off the Bid or Ask at the moment the bracket becomes active e Quantity The quantity to be bracketed must be designated for brackets on positions Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 153 e Add brackets to positions from the Positions tab right click on the position and select Add Bracket to symbol or click on a Position tile HJ any where in the software and click the Add Bracket link You can have up to 10 brackets per position e Change or cancel brackets on positions from the Order Status tab O tiles throughout the software or from the Order flag displayed on a chart e All active brackets on a symbol will be cancelled if the position is completely closed If a position is partially closed any additional brackets on the sym bol will remain active e The total sum of the brackets on positions can exceed the current position quantity but will not sell more shares than you own at the time the bracket s are triggered Adding Brackets to a New Primary Order 1 Click Buy or Short for option orders click Buy to Open or Sell to Open in Trade tool 2 Set up the details of your primary order including order type quantity limit price timing and any special conditions 3 Click Brackets button to access the Bracket settings 4 In the Bracket settings choose which exit s you w
81. cece cece eee cece ee 255 Conditional Orders and Alerts Settings 00 0 0 0 0 20 2 c cece cece cee eec ec ee ees 255 Conditional Order Templates 220 0 0 o ccc cece ecccceccececcececsceceeees 256 Global Investing 0 02 0 2 cece cece ec ec eee ce cece ccceccececececeeeececceececseeee 259 ace ei ee i he Re 260 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 4 Charts OVervieW _ 2 0 ooo occ ccc cece ccc enc cece cece e ccc bee c cece eee ai d daaa 260 Chart Tasks nits toca aes abetted te ea eae doin a oa Meenas cs cece 264 Chart Settings sa cca tana scree addin dla tetas df Saltese oese piace 267 Chart Studies eve re ee ne aoe ee ee eRe ne 1a21aa2 278 Chart Lines and Objects 2202 02 0 ccc cc aana aL PA LDA L aLL aan nann 295 Chart Display TipS 2c2ete es G ae sce eh cokawee ess ddl suena daa tea dieusdee decks 298 Research Tools o oo cece cceccc cece cececececcceecececececeeesececececeeeeeeecees 301 SymbD l HUD ooo ho ed hac thas Be a tice aes eectene eletededaesatateaiak us eeuseusedadesoeces 301 Screener PluS a a 0000000000000000 00000000000000 1000 0001000000100001 Rusbdudceseaesendlosed 304 Creating Custom ScreenS 0 000 o oo 00a aoaaa 0000A LLDD D PLL D Lra 2222n 313 Sect rs Screenef n a Ea e L isea peal iaa E Eea ee he ei ial 315 Screener Plus Column Descriptions 0 0 0 0 20 20 0 2 ccc ccc ccecc ccc ceccececcececees 317 PAO toes a
82. click on a symbol almost anywhere in the software and select Create Alert on symbol to begin creating an alert on that sym bol e See Create Alerts for detailed instructions on setting up an Alert Edit an Alert 1 Click on the alert in the Alerts tab 2 Either from the Actions drop down or by right clicking on the alert choose Edit Alert 3 Make changes to your alert and click Update Alert Activate or Deactivate an Alert You can manually change the activation status of an alert regardless of the Expir ation date on the alert Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 50 1 Click on the alert in the Alerts tab 2 Either from the Actions drop down or by right clicking on the alert choose Activate Alert or Deactivate Alert Activate or Deactivate ALL Alerts e You can also activate or deactivate all alerts at once rather than one ata time e From either the Actions drop down or by right clicking in the Alerts display select Activate All or Deactivate All Remove Alerts e Delete alerts permanently by clicking on the alert and selecting Remove Alert in the Actions drop down or by right clicking on the alert and select ing Remove Alert e You can also delete all alerts at once by choosing Remove All Alerts either from Actions or by right clicking in the Alerts display Export Alerts 1 You can Export your Alerts data to x s for Office XP and lat
83. click on the arrow to open the Edit window and change the Label or color of the arrow Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 297 Chart Display Tips StreetSmart Edge charts offer a multitude of features in a relatively small space so knowing your way around the chart display features can help you get the most out of your Chart tool and your screen real estate Chart Settings Drawer The Chart Settings Drawer on the right side of your Chart display has 3 views mouse over each thumbnail to see full size Fully Open Icons Only Closed 3 920 600 mml Type Daily PY style Candlestick Hollow GO overlays Add F Extra Periods 0 500 ee gt al Draw b d studies 0 D HF Colors D XE Settings Help for Chart settings D yipo GRN E EEA S B To change the view from Icons Only to the more compact Closed view 1 Hover your mouse over the drawer tab until your cursor changes to a side ways arrow as shown circled in the Icons Only image above 2 Click and drag the drawer to the right to close it all the way Do the same and drag to the left to re open to the Icons Only view 3 Click the drawer tab to fully open the Settings drawer from either the Closed or Icons Only view Streamlined View The gg icon in the toolbar of the Chart allows you to switch between the regular and streamlined views of the Chart with a single click The streaml
84. close for the last year and the Current Price expressed as a percentage i e difference between YTD Avg Close and Current Price divided by YTD Avg Close Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the beginning of the cur rent fiscal year to the most recent full week of the fiscal year Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the most recent fiscal year Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the most recent 2 fiscal years Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the most recent 3 fiscal years Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the most recent 4 fiscal years Rate of return representing the price appre ciation of a stock with cash dividends reinvested Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 324 Price Performance Total Return 3 Mo Total Return 6 Mo Total Return 9 Mo Return on Equity Return on Assets Beta Value Daily High Count Daily Low Count High Prev Day on
85. closes and the average down closes for the same period This ratio is multiplied by 100 You can change the number of periods used in the calculation from the default of 14 and you can chose which Average price to base the study on Close Open etc from the study settings The initial value of an n period RSI is based on the price action for the first n periods Subsequent values are determined using an inductive formula analogous to the EMA for mula described earlier Formula The formula for the initial value of RSI is RSI 100 7 _ U D 1 N U J Close Close _ where al i ee for all Close Close gt 0 1 bid D Ch Close _ and neal TE for all Clase Close lt 0 Subsequent values of RSI are determined ai RSI 100 _ using the formula U D Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 281 1 U n DU _ UP where t mG t 1 4 1 and 2 o 1 D DOWN where V Close Close _ if Close Close gt 0 and 0 otherwise and DOWN Close Close _ if Close Close 1 lt 0 0 otherwise Stochastic RSI a Plots the Stochastic D line of the RSI Rel ative Strength Index to represent the level of the RSI indicator relative to its range over the number of periods you specify Default of 14 Stochastic and RSI periods as well as the default Slowing Factor of
86. code click the News Code button to view the available news codes and descriptions Choose a code and click OK e To narrow the list of news codes down you can use the Filter news codes by keyword or Filter news codes by Category feature Select a Timeframe Choose from Today Last 24 Hrs or a Custom search where you can enter a start and end date for the news search The Custom search can look for news up to 60 days back News Watch The News Watch tab allows you to watch for news on a list of symbols and or news codes Click a headline to display the article in the preview pane Double click on a headline or right click and select Open Story to open the article in its own window Adding Symbols to News Watch To get started adding symbols to the News Watch tab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 383 1 Click Edit News Watch at the top of the News Watch tab 2 Edit the news watch in any of the following ways o Manually enter symbol Type symbols in the Enter symbol field and click Add To add multiple symbols at a time adda comma between the symbols o Watch List Add all the symbols in a saved watch list by select ing it from the Select Watch List drop down Click Add to add the symbols to the list o Current positions To add all your current positions to the news watch list check Current Positions Your positions won t actu ally be listed in the New
87. covered put strategy if the target price is reached Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 181 Outputs Max Gain Shows in Dollars the maximum amount you could make Max Gain Static ROI Static ROI Target ROI from that trade This would assume that the option expires with an assignment If assigned on Calls you would be selling the stock and if assigned on puts you would be buying the stock back e Call Calculation Call strike price either Stock Ask or input stock price depending on stock price chosen call bid shares input option multiplier usually 100 e Put Calculation either Stock Bid or input stock price depending on stock price chosen put bid Put strike price shares input option mul tiplier usually 100 The return if the max gain is reached expressed as a of the initial investment price calculated as follows e Call Calculation Max Gain stock Ask or input cost Call Bid share quantity e Put Calculation Max Gain stock Bid or input cost Put Bid share quantity Static Return on Investment shows in Dollars the return if the stock price did not move from the current price and the option was to expire Calculations e If stock would be assigned uses the Max Gain cal culations above e If stock would not be assigned o Call Calculation Call Bid share quantity o Put Calculatio
88. date and strike price A long straddle offers an opportunity to make money when a stock or index moves substantially A short straddle Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 207 offers an opportunity to make money when a stock or index stays within a nar row range Long Straddles Long straddles may allow an investor to profit from dramatic price movements in a specific security or index An investor might employ a long straddle when he expects a Surprising movement by the security but is unsure of the direction Long straddles involve simultaneously buying calls and puts with identical strike prices and expiration dates typically at the money The investor may benefit from either a large increase or a large decrease in the price of the stock However the stock must move up or down further than the total premium paid for the investor to profit at expiration Prior to expiration if the underlying security moves substantially up or down the investor may choose to realize a profit by selling the in the money option before its expiration date In this case while the in the money option will have been los ing time value since it was purchased the losses in time premium are offset by the gains in intrinsic value The investor may continue to hold the out of the money option for the possibility to participate in any further opposite movement by the underlying security Howev
89. dis plays the main symbol s chart with your Type and Style spe cifications see Chart Settings e The right side of the chart shows the price ranges e Price Scale Adjustment You can adjust a chart price scale to optimize the visual results of the chart Move the mouse over the price scale and then click and drag the scale up or down to adjust the display scale e The bottom shows the time or dates the chart spans e The left side can show the percent change from the low est point to the highest point when displayed Across the top of the chart are Chart Keys which represent the symbol overlays studies or drawn objects you have added to the chart from the Chart Settings panel To Hide Show ALL overlays drawn objects and stud ies click Hide in the upper left corner of the chart Click Show to display them again For more on overlays drawn objects and studies see Chart Settings Study Panes Studies and overlays can display in a separate pane below the price chart if you wish 1 Right click on a study or overlay and select Edit 2 In the Edit window change the Show In setting to New Pane to separate it out from the price chart 3 If you want to add another study or symbol overlay to an existing pane choose the name of that pane instead Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 261 Chart Features Title Bar Tab Bar TIP You can move
90. display in the Watch List For brief descriptions of each column hover your mouse pointer over the column name For more in depth descriptions of each column see Watch List Column Descriptions Sorting Rows Sort rows by clicking the header of the column by which you want to sort An arrow next to the column name indicates the sort direction ascending or des cending e If Auto Sort in Real Time is checked in Columns and Settings found in the right click menu changes to data in the sort column will affect the cur rent sort order in real time e For example if you have your Watch List display sorted alphabetically by Symbol when you add new symbols to the list the new symbols will be inserted into the Watch List in the correct alphabetical order e Toreturn the list to its default order click the Custom Number column header Sorting by multiple rows can be accomplished by holding down the Shift Key while you left click on the headers of the columns which you want to sort Arranging Column Order There are several ways to rearrange the columns displayed in a Watch List tab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 378 e You can click the column headers and drag them to another spot in the Watch List display e You can also right click on a column header and choose from the list of all available columns TIP If the column you choose is not currently displa
91. display order See more on Customizing the Level I Display TIP At the bottom of the Level I Settings win dow you can also specify whether these set tings should apply to all Trade Tools in your layout or just this one Click the Stocks amp ETFs tab to display the Trade Ticket This is the primary order routing interface in the software and is also available in the Sym bol Hub TIP You can hide the Trade Ticket by clicking the double arrow tab fayin the upper right corner Click again to re display it e Calculate Shares Click s to calculate the maximum number of shares you can trade based on the dollar amount you specify See more on Placing Equity Orders and Equity Trading Venues e Trading settings such as enabling or dis abling order verification default quantities and commission estimates can be found by right clicking in the Trade Ticket area and selecting Trade Ticket Settings or under Settings inthe main menu For more inform ation see Trade Settings e Action Menu vs Buttons You can display your order actions either as a menu shown above or as individual buttons that initiate the order instead of a Review Order but ton Shows an estimation of the cost or proceeds depending on the number of shares and limit or market price The estimation does not include commissions or fees unless you specify them in the Trade Set Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved
92. erenced herein and may as principal or agent buy from or sell to clients 1 Enter the symbol in the upper left corner and press Enter or click Go to load the symbol Click the arrow in the symbol field to choose from a drop down list of the most recently entered symbols You can also click one of the sym bols in the Minichart Carousel at the bottom of the window to load that sym bol 2 Now you ll see the last trade price change direction and change from the open as well as the full name of the company or index and exchange The Title Bar is found in several tools so to read more about it see the Title Bar topic 3 Below the Title Bar is the Level I data as well as the Order Status and Pos ition Indicators which show whether your account has open orders or pos itions in the selected symbol TIP To make the Title Bar a little smaller right click on it and select Compact Title Bar Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 301 Trade Ticket Stocks amp ETFs lf Options Conditional Orders 2 Action es al COE ei Price TE k vane Cancel Last Order r Estimated Cost Place trades from the Symbol Hub exactly as you would from the Trade tool Just like in the Trade tool choose the appropriate tab for the action you wish to take e Choose the Stocks amp ETFs tab to trade equity shares e Choose the Options tab to trade single or multi leg
93. financial statements to determine if the stock price is correctly valued AIBICIDIEIFIGIHIIIJIIKIL NIOTPIQIRISITIUIVIWIX Gaps Gaps form when opening price movements create a blank spot on the chart Gaps may be especially significant when accompanied by an increase in volume An up gap forms when a security opens above the previous period s high remains above the previous high for the entire period and closes above it Up gaps can form on daily weekly or monthly charts and are generally considered bullish A down gap forms when a security opens below the previous period s low Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 398 remains below the previous low for the entire period and closes below it Down gaps can form on daily weekly or monthly charts and are generally considered bearish Good Til Canceled GTC Instructs the broker to keep an order open until it is either executed or expires At Schwab GTC orders remain open for 60 calendar days unless filled or you request that it be canceled before that time Halted Securities Occasionally trading on a given security may be suspended due to a variety of conditions including news and corporate actions If the security you are attempt ing to trade has been halted you can place an order but it will not be eligible for execution or in force until the trading halt is lifted If you have an open order fora security that subsequ
94. for one symbol right click on the symbol and select Cancel All Open symbol Orders e Order Status Indicator Click on the indicator and click Cancel All Open symbol Orders to cancel all orders for the current symbol Click Cancel All Open Orders to cancel ALL orders you have open for any symbol and any security type You can also access these by right clicking on the Order Status Indicator Changing an Order For open Smart orders you may be able to make changes to the order such as quantity type limit price and more Click the order you wish to change and click Change Order at the top of the window A window with the order entry fields will open with your original order settings Make the desired changes and click Review Order or Cancel Changes if you want to keep the original settings If the settings are correct upon review click Place Order Note that you cannot change a Smart order to or from a trailing stop order type after the order has been submitted You must first cancel the order and then resubmit with a different order type Orders with Brackets You can change the primary order using Change Order as described above but to change the bracket exits themselves right click on the contingent bracket in the Order Status tab and select Edit Bracket You can not change the order AND its associated brackets via the Change Order function NOTE Some orders including all Direct Access orders and market orders unless t
95. found in the Launch Tools menu You can also add and view notes throughout the software anywhere you see the Notes icon E You may display up to 20 Notes tools across all open lay outs Adding Notes In tools such as Charts Watch Lists Screener Plus and Account Details you can find the option to Add Note in the Actions or right click menu TIP If you right click on a specific symbol and select Add Note for instance in the Watch List it will pre fill the symbol in the Symbol field of the Create New Note window 1 Click Add Note and fill out the Symbol and Title fields as desired 2 Adding a Symbol to your note is optional and may not be needed for more general notes However using the symbol where applicable can help you organize your notes and view all notes for one symbol together 3 Enter your note with up to 1 500 characters You can adjust the font size for the entire note as well as formatting all or portions of the text by selecting the text and clicking the formatting buttons Bold Italics Underline and Color 4 Click Save when you are finished Viewing Notes in Notes tool The Notes tool has two tabs All Notes which shows notes regardless of sym bol and Symbol Notes which shows only notes for the symbol you enter in the symbol field e Timeframe View All Notes or you can see fewer notes by limiting the time frame between the Last 3 months and This week e Delete To delete a note put a check ne
96. from Close 50 Day average up closes and the average down closes for the same period This ratio is multiplied by 100 Relative Strength Index indicates the degree of positive and negative movements by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 29 days using today s Cur rent Price for the 30th day divided by the sum of the average up closes and the average down closes for the same period This ratio is mul tiplied by 100 Relative Strength Index indicates the degree of positive and negative movements by the stock ona scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 30 days not including today if prior to close divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 Relative Strength Index indicates the degree of positive and negative movements by the stock ona scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 49 days using today s Cur rent Price for the 50th day divided by the sum of the average up closes and the average down closes for the same period This ratio is mul tiplied by 100 Relative Strength Index indicates the degree of positive and negative movements by the stock ona scale of 0 weakest to 100 strongest Determined by figuring
97. from any bid above 26 25 23 75 2 5 the stop loss exit amount that would kick in first if the bid were equal to or below 23 75 Using All Three Profit Trailing Stop and Stop Loss Exits e Buy 100 shares Dell 25 00 e Profit Exit 10 2 5 pts and will trigger order if the bid reaches 27 50 e Loss Exit 5 1 25 pts and will trigger order if bid drops to 23 75 e Trailing Stop Exit 5 1 25 pts and will trigger order if the bid drops 1 25 points from any bid above 25 00 23 75 1 25 Loss exit would kick in first if the bid were equal to or below 23 75 or profit exit would kick in if the bid reaches 27 50 Options Options Overview Trade options from the All in One tool designed with option traders in mind to provide a dynamic streamlined workflow and customization to your needs You can also trade options from the Options tab of the Trade tool or Symbol Hub Option trading tabs in any of these tools display real time streaming options data and for clients approved for options trading automatic electronic access to execute trades via all primary listed options exchanges Both single and multi leg options are available in any of the trading tools Basic Options The default view is Calls amp Puts and the Option Chain reflects the underlying sym bol loaded in the trading tool For step by step instructions on placing single leg option orders see Placing Option Trades Calls amp Puts Copyright 2010 2015 Charles
98. ge in valu ein tim e Gain Strategy view of stock z ie Max Loss Max Gain Chan Puts Premium Net Paid Premium Short Bullish Strike Net Net Premium Premium Received Received Vertical Debit Bullish Net S Bull Call Ratio Spreads Spreads Credit Spreads Debit Spreads Credit Spreads Premium Paid Bearish Shigh S Net ow Premium Received Bearish Net Premium Paid Bullish S High Si ow Net ow Premium Received Slightly Bullish Unlimited High S Net ow Premium Paid Net Premium Received High S Net ow Premium Paid Net Premium Received Low Long Con tracts Net Debit Cre dit Paid Re ceived Gain Loss Loss Gain Gain Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 191 ge in valu ein tim e Loss Strategy Sub For use when Financial Characteristics Strategy view of stock z ie Max Loss Max Gain Chan Bear Put Slightly Bear S ow x Difference Gain Ratio ish Short Con in Strikes Spreads tracts x Long Long Con Contracts tracts Net Difference Debit Cre in Strikes dit x Long Paid Re Contracts ceived Net Debit Cre dit Paid Re ceived Call Extremely Unlimited Ratio Bullish Siow Ratio Short Con Spreads tracts Net Debt Cred it Paid Re ceived Put Ratio Extremel
99. har eS ee ee a eee ens oe 333 High Low Settings 22 co ce ec oos Sete c ates ecestadcgobarsidccesimacstcedeshiadecacewncbeded se 337 ig 6 0 14 116 i gee een mane oe Ee ne Se en ae er TT 338 Understanding the Momentum Tool 2 2 0 0 2c cece cece cece ec eccececeeceees 341 Momentum SettingS 0 0 2 0 occ n cece cnc ccccececcceceesteseesseseseeneeseeees 343 Momentum Column Descriptions 0 0 20 20 002 c ecco e cece ccc eccececcececeeceees 344 ETP SCr6 ner ccc scceccesoceuceadedseneve sendin sa apbectdebosesieedeet vel epee ese e 345 REGOGMAR oecon ecedgonews a obese biede Rebel saaa oa ieee 347 PRICE VY ca ah ganesh abcd eedneunie buseuueabdebeeueedecadedeuandcteas 348 Market EGCG eich aca sec a a a e a e ab a O e eGeuease 349 CNBC TV gt ot enh tet pees a acess ieee scsonne ae eee eeee a eebaee aussie 349 F ndamentals atte celotteetos eta oe r Ghee ae es 350 Research Fundamental Data 0 0 0 2 0 2 cece ccc ec cece ec ececececeececeeeee 350 Research Summary joc 2 c doe sees eee ye deeee cede de x sdeseedesudedabedyencccetesele 351 Research Earnings fot sscecs ot hence echo ars Reise a Jsledcis E tose seule 354 Research Ratings orseson cee Seesaw a eaten peel 356 Research Metrics ccccc to cco cases ao ek ceed ga kee gah ee skeess en eencecc ies 357 Trader s Marketplace 2 22 00 0 ccc ccc ccc cece ccc cccecccecceceeceeeeseesectecesteeestes 360 Watch Lists ooo ccc cece ec ec cece ce cecececececceccececec
100. high of 100 and then retraces to 75 the move from 100 to 75 25 points retraced 50 of the original move from 50 to 100 Measuring the percent retracement can be helpful when determining the price levels at which prices will reverse and continue upward Position Holdings in an account or portfolio Position Trading Position trading means holding open positions for an extended period of time Contrast this with day trading where a trader buys then sells before the market closes that day Preferred Stocks A class of stock that pays dividends at a specified rate and has preference over common stock in the payment of dividends and the liquidation of assets Pre ferred stockholders may have different or no voting rights Premium The total price of an option s intrinsic value plus time value Often erroneously this word is used to mean the same as time value Price See ask price bid price and last trade Price Earnings Ratio The price earnings ratio P E ratio is figured by dividing the price of a stock by the company s earnings per share Primary Peg Pegs the order price to the bid if buying or the ask if selling OTC securities or the best exchange bid ask for Listed securities The order price will automatically adjust as the bid or ask moves until the order executes or the stock trades bey ond your limit price EXAMPLE Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153
101. hours market value is derived from the most recent closing price or last trade unless you have Update Equities Profit amp Loss during After Hours checked in your Account Settings Cost per share for the position Shows if position is enrolled in Dividend Rein vestment Certain stocks and mutual funds pay a dividend which may be reinvested into additional shares of the security or can be paid to you in cash depending upon your instructions e Yes indicates that the corresponding secur ity s dividend is being reinvested e No indicates that no dividends are being reinvested for that security and that dividends will be paid in cash Quantity held in selected account For stocks or mutual funds this field reflects the number of shares you currently hold For fixed income securities this field reflects the face value of the securities For options this field reflects the number of option contracts Today s gain or loss for your equity and option positions The calculation is based on the gain or loss for your positions since the previous mar ket close Marked to market or your cost if pur chased today It includes estimated commissions on positions established today Please note that the change calculation for your Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 375 Positions positions established prior to today can also be Day Chg P amp L Share
102. in the upper right of the layout window Saving Individual Layouts Layout tabs can be saved by right clicking the tab and selecting either Save Lay out as a File or Save Layout as a Template e Saving as a file saves an xml file to a spot on your computer of your choosing The benefit of saving as a file is that you can access the file extern ally for the purposes of backing it up moving to another computer sharing with other users etc e Saving as a template saves the layout as part of the software The bene fit of saving as a template is that it is quickly accessible directly from the right click menu by selecting Open Layout Template You may save up to 20 templates to the software If you need to save more see Saving as a file above TIP For more on saving backing up all layouts and settings see Backup and Restore Opening a Saved Layout e Open a saved layout file by right clicking on a tab or on the to the right of the tabs and selecting Open Layout from File e Open a Saved layout template by right clicking on a tab or the and select ing Open Layout Template and then select the template you want to open Close a Layout Close a layout by clicking on the x in the upper right corner of the tab or by right clicking on the tab and selecting Close Layout TIP For layouts opened outside the primary window you will be given a choice to dock the layout back into the primary window close the layout completel
103. ing pane To resize the reading pane click on the divider bar between the panes and drag it up or down Notification Settings Coming soon To change how you are notified of new messages right click in the Messages win dow and select Settings Choose from e Show a system tray notification Displays the message or subject of the message for 5 seconds in the lower right corner of your primary monitor Double click the message in the notification to open the Messages tool e Bring the Message tool s to the front Makes the Messages tool the active window in your StreetSmart Edge display e Do both of the above Adjust Color Settings 1 From the right click menu select Colors 2 Inthe Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Match the order status square to match the color of the order mes sage to the color coded status listed in the Account Details Order Status tab 4 Click Reset to Default Colors should you wish to return to the original col ors TIP Check Apply to all Order Messages tabs at the bottom of the Colors window if you want the color settings to apply to all Order Messages tabs Session Display If you log off and back on multiple times during the day all messages in the Order Messages tab for the previous session s will display in italics You can show messages from the current session only by right clicking in the window
104. it is Each predefined screen is based on a different investment and stock selection philosophy e Screen for ETFs Choose from a variety of criteria to build a new ETF screen from scratch e My Saved Screens Lets you retrieve your previously saved screens as well as edit them once you ve opened them TIP You may open up to 8 ETF Screener windows across all open layouts at a time Using Predefined Screens e To simply view the results of a predefined screen click the View Matches button under the name of the screen you want to see results for OR 1 To see the criteria and or edit the criteria of a predefined screen click on the screen name in the left hand column The criteria used in creating the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 345 screen will display on the right Make any adjustments to the criteria as desired TIP Click Add Custom Criteria to add new criteria to the screen Choose from the list of criteria selections in the left hand column 2 When you are finished editing the predefined screen you can either click the View Matches button to see the results or click the Save Screen button to save your changes Creating a New Screen 1 Click the New Screen button 2 To add screening criteria select criteria from the Choose Criteria menu on the left side 3 Each criterion you select is then added to the panel on the right and can then be
105. line as well as in the Level 1 Data Bar Quick Add a study 1 If you know what study you want to use type the name of it in the Quick Add field of the Chart Settings panel 2 Matching choices will display and you can select the study you want to use 3 Click Add to add the study to the chart and open the study set tings where you can edit the study settings Edit a study 1 Right click on the line so it becomes bold 2 Inthe menu that displays choose Edit You can also right click on the name of the study at the top of the chart or pane to access the Edit window 3 Inthe edit window you can change the following attributes o Color Click ona color to replace the color assigned by the software o Line pattern Choose from solid dotted dashed and other line patterns o Weight Choose from varying line widths o Location In the Show In drop down choose whether to show the overlay on the price chart or ina New Pane below the chart Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 273 o Period Many studies have one or more period setting Refer to the Chart Studies topic for each study s unique settings 4 When you are finished editing click OK TIP You can also click the gear symbol gin the Studies panel to edit a study Hide a study without deleting it e Right click on the study name at the top of the chart or pane and select Hide or e Inthe
106. line Click on the chart to draw a green horizontal line where you identify a support level Resistance line Click on the chart to draw a red horizontal line where you identify a resistance level Horizontal line Click on the chart to draw a simple horizontal line Vertical line Click on the chart to draw a simple vertical line Trend line Draws a line with two anchor points and the line extends to infinity With your mouse pointer on the spot where you want to start the trend line click and drag the other end of the line to the angle you want To adjust the line click on it so it becomes bold and grab the square anchor and drag it to a new pos ition You can also change the location of the anchor at the beginning of the line Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 295 Draw type Trend line snap Linear Regression Trend line Segment line Annotation Fibonacci arc Fibonacci retrace Description Draws a Trend line that Snaps to the price point you specify Open Close High or Low A Linear Regression trend line uses the least squares method to plot a straight line through prices so as to minimize the distances between the prices and the resulting trend line Right click on the line and select Edit to configure how many standard deviations away from the cen ter trend line the upper and lower channel lines will be Similar to a
107. main screen to another monitor hooked up to your computer and it will open a new layout on that monitor with just the CNBC tool in it This can be done with any tool in StreetSmart Edge You may have one CNBC tool open ata time CNBC TV material is prepared by an independent third party that is not affiliated with Schwab Schwab does not edit or endorse any of this material and is not responsible for its content Fundamentals Research Fundamental Data Fundamental data for a company gives you a look beyond the price volume and other streaming indicators and may provide a more well rounded view of a com pany Fundamentals include earnings data analyst ratings and metrics around valuation growth financial strength and more amp StreetSmart Edge offers several ways to access research and fundamental data e In the Symbol Hub found in the Launch Tools menu click the Research Q button to flip from live data to research e Open the stand alone Research tool via the Launch Tools menu e Right click on a symbol in a screener or watch list and select View Fun damental Data for symbol The Research display has four tabs Click the links below for descriptions of the data in each tab Summary The Summary tab shows general company and security information like market cap basic earnings data price and volume data Schwab rating business sum mary and executives and more TIP Simple information like a high H
108. may display one instance of the Symbol Lookup tool per layout tab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 417 To look up a symbol 1 Enter the name or part of a name of the symbol you are searching 2 Choose how to search Contains will find any instance of your search term anywhere in the name or symbol or description if you check Search Description Starts with will only find instances of your search term at the start of a name or symbol 3 Select the types if securities to include in the search results Stocks Pre ferred Stocks ETFs and or Indices 4 Click Go to display a list of potential matches 5 Click the before the name of a company to view the full company descrip tion Once you find the symbol you re looking for click on it and then use the Actions or right click menu to make your next move From there you can load the sym bol into the Trading or Symbol Hub tools create an alert or conditional order access news or fundamental data or link out to do more research at Schwab com TIP Double clicking on a symbol in the results will broadcast the symbol to all linked tools Index Symbols The following table lists some of the indices available in StreetSmart Edge NOTE Chart not available for all indices StreetSmart Edge Index List Symbol AMEX International Market Index Adr ADR Mkt Con Cyc Amer ADVA Advancers AMEX Options ADVAO
109. middle strike Call and Put typically exceeds the premium received from selling the outer strike Call and Put therefore a long iron butterfly is typically established as a net debit position For use when investor anticipates Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 225 e Significant movement in security price in either direction e Higher volatility Financial Characteristics e Maximum Loss Difference between middle strike price and outer strike price less net credit e Maximum Gain Initial net credit received Objective e Gain from significant change in price of the underlying security either up or down by expiration EXAMPLE Long Iron Butterfly Assume it is July 17th 2014 and John an options trader has identified XYZ as a stock he believes will make a sharp move either higher or lower over the next month Therefore he decides that a Long Iron Butterfly is an appropriate strategy given his outlook and the limited risk that the strategy offers XYZ is currently trading at 34 43 and John decides that 34 00 is an appropriate middle strike it is around the money and John s outlook is slightly more bearish than bullish In addition John feels that the 32 00 and 36 00 strike prices create an appropriate wingspan since he feels that the underlying price will either be below 32 00 or above 36 00 at expiration Lastly John selects the August expir ati
110. new to StreetS mart alerts you learn about setting up conditions using the Alerts feature in the Account Details tool Getting Started Before setting Conditional Orders please read the Conditional Order Guidelines for important information regarding conditional order behaviors you should be aware of Placing Conditional Orders e amp Set up Conditional Orders either from the Trade tool or from the Symbol Hub by clicking the Conditional Orders tab at the top of either window or from the All in One tool by either clicking the Conditional Orders tab or cre ating a Conditional Orders tab e See Placing Conditional Orders for instructions on setting up conditional orders e See Conditional Order Templates to learn how to save conditional order set tings you use frequently for quick re use e Conditional Orders display in the Order Status tab of the Account Details tool once you activate them This differs from Alerts which display in the Alerts tab because they do not have an order routing component Editing Conditional Orders 1 Make changes to conditional orders from the Order Status tab of the Account Details tool Order Status Realized Gain Loss Cancel Order Change Order Actions Order Detail 44 Status Symbol Trade Type Action Quantity Price PCX Order Sell 10000 Market Cc Order IBM Order u 00 Y Active Conditional Order Buy C If C s Ask Decreases to 4 Points Expiration 11 1 2010 4 00
111. not start paying interest until trades are settled The net Open balance in your account arising from short sale transactions The net Cash balance in your Schwab account The total marked to market value of your long positions broken out by marginable and non marginable securities based on the last trade price If for some technical reason real time valu ations are not available the values displayed may be based on the prices from the close of the previous business day or on twenty minute delayed quotes The total marked to market value of your short Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 67 Balances Fields Options Market Value Long Short Total Securities Descriptions positions broken out by marginable and non mar ginable securities based on the last trade price Such positions will typically be shown in the mar gin account column Your options are typically held in the margin por tion of your account Option information only dis plays for accounts that hold option positions The total value of your long and short options pos itions based on their current real time market prices Options are not marginable securities but are normally shown in the margin account column for accounting purposes The total values of all long and short securities positions including options in the margin and cash accounts A combined net value for the
112. on Fridays except during the expiration week for regular options the third Friday of each month and typically have a lifespan of 7 8 days They are generally created on Thursdays and cease trading the Friday of the following week Thursday in the case of AM settled options Weekly expiring options may provide traders with more flexibility when assess ing targeted trading opportunities Not all stocks ETFs nor indices trade weekly expiring options the number is cur rently limited You can get the most updated list from the Options Clearing Cor poration Quarterly expiring options Quarterly expiring options expire on the last business day of the following cal endar quarter ending months March June September and December These options are generally created as far as 6 quarters in advance of their expiration and their last trading day is typically on the day they expire Quarterly expiring options may provide traders the ability to align their trading strategies to the calendar or business ending quarters How do I find and trade non standard expiring options Schwab com Page Help You can search for non standard expiring options in many ways From within the Option Chains page when an underlying security has non standard expiring options associated with it a Show Non Standard Expirations checkbox will appear next to the Expiration filters Checking this Copyright 2010 2015 Charles Schwab amp Co Inc All rights r
113. option symbols you can copy and paste the symbol from the option chains located in the All in One tool Trade tool or Symbol Hub by right clicking on the Option symbol and selecting Copy then Paste into the desired field again using right click Select the type of data you wish to monitor for the symbol e Bid Bases your conditions on the inside Bid price e Ask Bases your conditions on the inside Ask price e Volume Bases your conditions on the daily cumulative volume e Trade Price Bases your conditions on the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 250 last sale price reported A It is not uncommon for erroneous trade reports to come through the Time amp Sales dis play with prices away from of the market You will be responsible for any orders that are executed even if they are based upon inac curate information To minimize possible issues consider using the Bid or Ask variable when sending conditional orders This is nota guarantee that orders will not be sent based on bad prints and will not completely remove the risk of alerts firing based on inaccurate data e Change from Open You can set up an alert or conditional order to trigger based on the dif ference between the current price of a stock and the price at the open Note that the change amount itself is used as a basis for the calculation so that if the current Change f
114. options depending on the permission levels associated with your account and view Option Chains e Or to set up an order that triggers based on a set of criteria you specify choose the Conditional Orders tab TIP You can hide the Trade Ticket fields by clicking the double arrow button a next to the Conditional Orders tab If you have the Trade tool open sep arately in your layout and prefer to place trades there contracting these fields allows you to preserve some screen real estate Live Data amp Research Charts Option Chains News Research Q CSCO 1Year Daity Date 04 22 2010 Open 27 06 High 27 28 Low Close 27 23 Volume 28 917 142 Rivals T System SEN team up for global 04 23 2009 ESEA 04 22 2010 EDI partnership ox 3 rs 04 22 2010 07 07 AM Go Stock symbols and price and volume data shown hee and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients Toggle between the Live Data and Research panels by clicking the Research Q or Live Data Q buttons The Live Data panel consists of 5 tabs with streaming quote and news data Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 302 e Summary Gives a one glance view of the symbol s
115. order routing see Equity Trading Venues Option Trading The All in One trade tool is ideal for option traders thanks to the seamless stock and option trading workflow See the All in One Trade Tool to learn more In the Trade tool and Symbol Hub the Options tab provides you the tools to place both simple and complex multi leg option orders e Choose an option strategy from the Strategy Selector and the trade ticket and option chain will automatically be set up for trading the selected strategy e Within the Call amp Puts option chain click the arrow next to any option sym bol to see the contract specifications and Market Depth information for that contract For more information on Option trading see Options Tab Features Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Conditional Orders Conditional Orders are a way to place orders when the market conditions you define are met You specify up to 3 conditions as well as up to 3 orders that will be placed when those conditions are met The conditions operate just like Alerts with the added convenience of placing an order on
116. over year Sales Growth 5 yrs Growth in annual sales compounded over 5 years Research Ratings Research fundamentals on a symbol by opening the Research tool under Launch Tools or by clicking the Research button Research Q in the Symbol Hub Below is the data found in the Ratings tab of the Research tool ANALYST RATINGS Schwab Equity Rating Get more information on Schwab Equity Ratings on Schwab com Reuters Analyst Opinion Shows the number of analysts covering the company and their ratings at various points in time including red and green arrows to show where recommendations have changed Standard amp Poor s Opinion Six to twelve month appreciation poten tial e 5 Buy e 4 Accumulate e 3 Hold e 2 Avoid 1 Sell Standard amp Poor s Earnings amp Dividends Rank Measures the historical growth and sta bility of a company s earnings and Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 356 ANALYST RATINGS dividends for the past 10 years Other Ratings Shows an accumulation of where other analysts rate the company INSIDER ACTIVITY Prev 3 Mo Buy Transactions Number of insider buys over the past 3 months updated on a weekly basis Shares Bought Number of shares related to insider buys Sell Transactions Number of insider sells over the past 3 months updated on a weekly basis Shares
117. pane Study Open Study Hidden Hiding Study Lines While hiding study lines won t create more screen real estate it can help reduce visual clutter if you have multiple studies open in one study pane or price chart To hide a study line simply click the name of the study at the top of the study pane Click again to redisplay it Note Clicking the X next to the study name will remove the study from the chart completely Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 299 Viewing Orders amp Positions Display positions and or open orders in your chart to quickly visualize your activ ity in a stock without leaving the chart To turn this feature on or off open the Settings drawer then click Settings and scroll down to Activity Display Options Here you can check Orders or Positions to turn either on or uncheck to turn them off e Positions display a red or green line across the chart as shown below depending on whether your position is long green or short red Boxed positions are displayed in blue e Orders display as a flag next to the order price on the price scale You can see in the image below there is a Buy order at Market for this stock e If the limit price of your order is outside the displayed price scale the flag will display at the top or bottom of the price scale accordingly Alcoa Inc AA 1 Year Daily 12012 Open 8 70 High 8 90
118. per share NOTE P amp L is NOT calculated on a LIFO FIFO basis There are limitations on the reporting of transactions events that make up the P amp L amounts Unrealized profit or loss on the position as a per centage P amp Lis calculated based on an average Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 376 Positions price paid per share NOTE P amp L is NOT calculated on a LIFO FIFO basis There are limitations on the reporting of transactions events that make up the P amp L amounts P amp L Share Unrealized profit or loss based on the average cost per share Position Dollar Value Dollar value for existing position s in the account Calculation uses the bid price for long positions and the ask price for short positions Watch List Columns and Settings StreetSmart Edge Watch Lists are customizable allowing you to choose which columns of data to display for each symbol in your list as well as the order of the columns Access the Watch List Settings window by right clicking in the list and selecting Columns and Settings See Column Descriptions for details about each available column Applying Settings to Individual or All Lists You can choose to apply the settings changes you make to either just the current Watch List or to a Watch Lists The default is to apply the settings only to the current list but if you prefer the settings to appl
119. refers to the area on a price chart between two parallel trend lines that connect the highs and the lows of a prevailing trend Charting The set of techniques used in technical analysis in which charts are used to plot price movements volume and other indicators Close The price at which a security closed for trading on a given day Common Stock Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 393 Common stock is ownership of a corporation An owner of a company s com mon stock is considered to have an equity position in the corporate structure of that company Condor A condor is a four legged options strategy which combines two call spreads or two put spreads All four call legs or put legs have the same expiration date and generally maintain consistent distances between strike prices The strategy gets its name from its 4 part structure involving the two outer strikes or wings and two inner strikes representing the body The two inner strikes are typically positioned around the current price of the underlying stock Click here to read more about condors Confirmation Confirmation is a subsequent signal that validates a position stance Traders and investors sometimes look for more than one signal or require validation before acting For example confirmation of a trend change may entail an advance past the previous reaction high For an indicator such as MACD co
120. refined by clicking range buttons or entering text symbols Some cri teria allow you to enter an exact value rather than using the predefined choices to perform advanced screening TIP To include a criterion without filtering Select all the values by click ing them individually or click the Select All button 4 As you choose each criterion your list is filtered and the number of stocks that match all the current criteria is shown When you ve applied all the cri teria you wish you include in your screen click the View Matches button to view the results 5 The results will always show the symbol and name in addition to all the cri teria used in the screen Some columns may require you to scroll to the right to view All result columns can be sorted by clicking the column header Viewing Results The View by drop down lets you choose the data you want to see for your screen results The default is to see the columns you chose when setting up the screen but you can also see columns just for Risk Analysis or Valu ation or any of the other criteria groups Sorting Results Click the column header to sort by an individual column Click Advanced Sort to sort by multiple columns at once Start over Click the New Screen or Reset Screen button Save a screen Click the Save Screen button give the screen a name and click Save Modify a screen Click the Modify Criteria button or select new criteria from the menu on the left Copyrigh
121. reserved Member SIPC 1015 6153 209 selling one 25 put for 2 00 Since each contract represents 100 shares the investor receives a cash credit of 400 00 To break even or make a profit the stock must trade between 21 00 share and 29 00 share If the stock increases or decreases past these prices the investors suffers a loss The maximum profit the investor can earn 4 is if the stock closes at exactly 25 at expiration At that price the investor would retain the entire premium Short Straddle Gain Loss at Expiration on a G a ww ww l lt 4 4 18 20 22 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options M
122. select Open Story or you can double click on a headline to open it e When viewing the full story you can choose between three display modes At the bottom of the screen choose between B Page Mode View the story by clicking through the pages using the page number arrows image BBJ Two Page Mode View the story in two columns and click through the pages using the page number arrows ET Scroll Mode View the story in one page with a scroll bar on the right side allowing you to scroll down the whole story Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 380 e You can adjust the font size of the story using the Zoom function at the bot tom right of the news story window Drag the zoom tool left or right or click the or buttons to increase or decrease the text size Adjust Color Settings From the right click or Actions menu select Colors In the Colors window you can customize the colors of each element from background and highlight colors to font colors Click Reset to Default Colors should you wish to return to the original col ors TIP Check Apply to all News tabs at the bottom of the Colors window if you want the color settings to apply to all News tabs Tool Link Icon Link the News tool to other windows in StreetSmart Edge using the Tool Link Icon in the upper right corner For example by linking the News tool to the Trade tool any time you load a symbo
123. set up brackets e During order entry Click the Brackets button in the Trade Ticket when entering an order in the All in One tool Trade tool or Symbol Hub e From the Order Verification window Click the Set Exit Strategy but ton Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 150 e Onan open order In the Order Status tab right click on the order and select Add Bracket e On a position In the Positions tab right click on the position and select Add Bracket to symbol or click on a Position tile HJ anywhere in the software and click the Add Bracket link TIP For more information on and important differences between adding brackets to orders and positions see Managing Brackets lt Geta demonstration on using Brackets You may establish any of three types of exits e Profit Exit Specifies the increase or decrease for short orders in value from the average fill price required to trigger the profit exit The value can be a certain number of points pts or a percentage change from the exe cution price or the exit price itself EXAMPLE e Trailing Stop Exit Specifies the amount you are willing to let a stock or option price go against whatever gains it may attain This exit is valuable in helping you retain portions of your gain in a position before closing it out The value can be a certain number of points or a percentage of the exe cution price If you u
124. share Long Straddle Gain Loss at Expiration 4 2 0 2 w t Ss c T E 2 A l z i 18 20 22 STOCK PRICE in dollars Short Straddle Investors using the short straddle strategy anticipate that the underlying mar ket security of the options will trade in a narrow range and that large move ments in either direction are unlikely A short straddle will typically therefore involve the sale of at the money puts and calls with the same expiration date and strike price The investor receives the premiums for the calls and puts and hopes that at expiration neither the call nor the put will be more in the money than the total premium received The strategy exposes the investor to unlimited losses with the possibility of only limited profits The investor might also sell a straddle at a strike that he she expects the underlying security to move to by expiration For use when investor anticipates e Flat Neutral market for the security e Decreased volatility Financial Characteristics e Maximum Loss Unlimited e Maximum Gain Premiums received in the transaction e Benefits from time decay Objective e Speculative income generation EXAMPLE Short Straddle XYZ trades at 25 00 share An investor believes that the stock will remain flat in the near term He puts on a short straddle selling one 25 call for 2 00 and Copyright 2010 2015 Charles Schwab amp Co Inc All rights
125. software are for illustrative purposes Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 78 only Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities referenced herein and may as principal or agent buy from or sell to clients Rollout Position Quickly open a ticket to roll out an option position to a later expiration date by clicking the Rollout Position button or choosing the Rollout selection in the right click menu The ticket will open in the All in One trade tool You can also access the Rollout button from the P tiles throughout the software The above method for closing multi leg options also applies to Rolling out Spreads and Straddles To do so either click the strategy row or multi select the position to rollout Start a Trade from Positions There are multiple ways to initiate a trade ticket loaded with a symbol from your Positions tab For equities or single option positions Click the bid or ask quote to load the All in One Trade tool order ticket The symbol will load along with a limit order at the price you clicked If you click the bid quote the order action will automatically choose Sell likewise clicking the ask quote will set up a Buy order For multi leg option positions Group by Option Strategy view Click the strategy row s bid or ask quote to load the All In One trade tool w
126. specific trade In addition the calculations incorporate annualized dividend yields and do not consider ex dividend dates early assignment and other risks associated with option trading If an option expires before the estimated date it is treated as though it expires on the estimated date Investment decisions should not be made based solely upon values generated by the Trade amp Probability Calculator Covered Calculator View The Covered Calculator is a view on the Calls and Puts Option Chains which shows calculations for Covered Call Buy Write amp Unwind or Covered Put Sell Write amp Unwind trades Commissions and dividends are not included in the calculations so be mindful of their effect and timing Inputs Stock Price Choose to base the calculations using a stock price from the market Ask for Covered call calculations and Bid for Covered Put calculations or input a cost you want to use as the stock price e The input cost is loaded with an average cost from your account when that is available e If the Bid Ask Prices are chosen the calculations will stay updated based on changes in the stock price e Calculations will stay updated with quote changes in the option prices Shares Enter the number of shares you would like to run the cal culations with The calculations will assume 1 option is traded for every 100 shares Target Price Used to calculate the return on the covered call or
127. spikes and may help spot possible longer trends Set the time frame according to your par ticular trading style Market Speed Adjust the Market Speed slider to help the tool com pensate for how fast or slow the market is moving The default setting is geared toward tracking higher volume more active stocks To track less active stocks move the slider toward the slower end of the Market Speed setting Sorting Rows Sort rows by clicking the header of the column on which you want to sort An arrow next to the column name indicates the sort direction ascending or des cending e If Auto Sort in Real Time is checked in Settings changes to data in the sort column will affect the current sort order in real time e For example if you have your Momentum list sorted by Activity Rate as the Activity Rates change for each symbol the list will re sort itself to stay in order of Activity Rate Customizing Columns There are several ways to rearrange the columns displayed in your Momentum tool Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 343 e You can click the column headers and drag them to another spot in the Momentum tool e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the tool it will completely displace the column that was there
128. study panes around the chart While pressing CTRL on your keyboard click on the study pane Drag the pane up or down either to place it above the price chart or if you have multiple panes to place it above or below other panes Release the mouse when the pane is positioned where you want it Order Position and Note Indicators The chart can dis play Order Bracket B and Position P indicators as well as any Notes related to the symbol being viewed For more on these features see Activity Display Options in the Chart Settings Enter the symbol you want to view a chart for and click Go or press Enter The Title Bar is available in several tools and includes some basic price data as well as the Tool Link Icon For more on these features see Title Bar You can also Duplicate an entire Chart window by right click ing in the title bar and selecting Duplicate Chart Window Shows the tabs open in this Chart tool e Tab Names Charts are named by their SYMBOL DURATION TIMEFRAME by default but you can double click on the tab and it will change to a field that you can edit and supply a name of your choice e Add a new tab Click the symbol next to the tabs It will open a duplicate of the last tab in the window which you can then edit e Right click menu Right click on the tab label to see a menu of actions you can take on the tab including cre ating a chart template saving deleting duplicating and more More
129. tab the starting price of the bracket is based on the average fill price For trailing stop brackets the starting price is based off of the Bid or Ask at the point in time the bracket becomes act ive However when you establish a bracket AFTER the order fills from the Positions tab or a Position tile you will need to specify a starting price and quantity Long 100 AA Select Starting Price Bid 8 40 z Ask 9 59 O Other Last 8 42 Bracket Start Price 8 40 pa Cancel Changes mouse over to enlarge 1 Select a starting price from the Bid Ask Last or enter a custom price in the Other field If you are adding the bracket to a position with multiple fill prices the Avg Cost will also be an available selection Note Trailing Stop exits use the Bid or Ask at the time the bracket is added as the starting price and does not use the values specified in this step 2 Enter the portion of your position to which you wish to apply the bracket in the Quantity field Click the arrows to increase or decrease the quantity by 100 share increments or type a number in the field 3 Choose which exit s you wish to use in your risk management strategy for this position Profit Trailing Stop see note above and or Stop Loss See Brackets Overview for descriptions and examples of each 4 Set up the parameters for the selected brackets while confirming that the Est Price is in line with your expectations The estimated pri
130. templates you can save in the software You can save an unlimited number of templates by using the Save As File feature but templates saved as file will not display in the Open drop down menu These limits are spelled out below Click the link for the individual tool or feature to read more about each one Max Tool Feature max 2 ofTopl of max mor Notes Instances s Templates Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 36 Max Tool Feature Max A onTooI of Mak sof Notes Instances Tabs Templates eae eo TV Conditional Order EEF lates ETF ETF Screener E E a T E A P Max Layout Tabs Server Saved 5 Market Market Ede a r r EN mer p formance PredictWallStreet _ Pe E OEN EE a Berean a Screener Pus 12 202 symbole s jma mva OO Single Symbol Lookup instance per layout tab Trae fv e Trade ainone 88 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 37 Max Tool Feature Max of Tool of Max of Instances Tabs Templates Trader s Mar ketplace Watch List Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 38 Account Details Account Details From the Account Detail tool you can view pertinent details about your account by clicking one of the following tabs It is recommended that you integrate the Account D
131. the Momentum line drops below the center line a near term downtrend may be in effect One popular time period used for Momentum is the 10 day however any time period can be employed A shorter time period produces a more sensitive line with more pronounced oscillations extremes while a longer period results in a smoother line with less volatile swings Money Flow amp Money Flow Percentage Developed by Marc Chaikin Money Flow is one of several indicators available to measure the flow of money in and out of a particular security The Money Flow indicator is derived from the daily read of the Accumulation Distribution Line The basic premise behind the Accumulation Distribution Line is that the degree of buying or selling pressure can be determined by the location of the close relative to the high and low for the corresponding period closing location value The closing location value multiplied by volume forms the Accu mulation Distribution Value for each period Money Flow Percent is calculated by dividing the sum of the daily Accumulation Distribution values over a specified time period by the sum of the Volume over the corresponding period Generally accumulation or buying pressure is present when prices close in the upper half of the day s range and distribution or selling pressure is evident when prices close in the lower half of the day s range If prices consistently close in the upper half of their daily high low range on incre
132. the Put Call ratio by dividing the total number of puts by the total number of calls for an underlying stock or index based on the trading volume of the current or most recent trading session Updates intra day DIVIDENDS Dividend Yield Dividends paid by company over last 12 months as a of Previous Close Annual Dividend Dividends paid by company over last 12 months in dollars per share Quarterly Dividend Amount of latest declared dividend Research Earnings Research fundamentals on a symbol by opening the Research tool under Launch Tools or by clicking the Research button esearch Q in the Symbol Hub Below is the data found in the Earnings tab of the Research tool QUARTERLY EARNINGS Estimates for Quarter Estimated Earnings Per Share and Sales for the indicated quarter Shows the high and low estimates as well as the average of all estimates The number of estimates used in the calculation is displayed in the Est column Actual Quarter EPS Actual Earnings Per Share for the quarter Previous Quarter EPS Earnings Per Share for the previous quarter Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 354 QUARTERLY EARNINGS Surprise Difference between estimated and actual earnings for the previous quarter ANNUAL EARNINGS Estimates for Fiscal year Estimated annual Earnings Per Share and Sales for the year indicated Shows the high and low estimates as well
133. the Trade tool Check your Messages or Order Status to confirm success of cancel order If you create an equity order you want to send at a later time click Save for Later at the bottom of the order entry screen The order will save to Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 114 Stock amp ETFs Tab Features the Order Status tab of the Account Details tool where you can right click on the order and Sub mit Edit or Delete it Available in basic Trade tool only Not in All in One Trade tool or Symbol Hub Title Bar The Title Baris found at the top of all symbol specific tools in StreetSmart Edge The All in One Trading Charts and News tools as well as the Symbol Hub and Recognia tools each have the Title Bar at the top because the information they provide is related to one main symbol Compact Title Bar Right click on the Title Bar and select Compact Title Bar if you want the bar to take up slightly less space on your screen It will still show most of the information below minus the Exchange FSI Codes and Hard to Bor row indicators TIP The feature all windows in the software share whether they are symbol specific or not is the Tool Link Icon which allows you to specify which other windows update when you load or click on a symbol Title Bar Features Symbol To load a symbol click in the field type the new symbol and press Enter on yo
134. the X next to it 3 Confirm your wish to delete the template by clicking OK If you don t want to be asked to confirm the deletion next time check Do Not Show Again Built in Templates Ask Increases Buy In Day Alert Margin Equity Warning Stop Loss Straddle Trailing Stop Volume Alert Beeps and loads the Trade tool if the ask increases to the desired value You specify the symbol and value Beeps and loads the Trade tool if the ask gains the desired percentage You specify the symbol and value Beeps and loads the Trade tool if the Change from Open increases or decreases to one of the desired values You specify the symbols and values Beeps and loads the Trade tool when the trade price decreases to 3 05 At 3 00 marginability increases to 100 Beeps and loads the Trade tool when the Bid decreases to a specified value You specify the symbol and value Beeps and loads the Trade tool when the Bid decreases to a specified value or the Bid increases to a specified value You specify the symbols and top and bottom bid values Allows you to follow the price movement upward and beeps and loads the Trade tool when the Bid decreases by the amount spe cified More on trailing stops Beeps and loads the Trade tool when security volume gains the specified amount You specify the symbol and volume Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 61
135. the desired value You specify the symbol and value Buy In Beeps and loads the Trade tool if the ask gains the desired percentage You specify the symbol and value Day Alert Beeps and loads the Trade tool if the Change from Open increases or decreases to one of the desired values You specify the symbols and values Margin Equity Warning Beeps and loads the Trade tool when the trade price decreases to 3 05 At 3 00 and lower the margin maintenance requirement is 100 Stop Loss Beeps and loads the Trade tool when the Bid Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 63 Built in Templates decreases to a specified value You specify the symbol and value Straddle Beeps and loads the Trade tool when the Bid decreases to a specified value or the Bid increases to a specified value You specify the symbols and top and bottom bid values Trailing Stop Allows you to follow the price movement upward and beeps and loads the Trade tool when the Bid decreases by the amount spe cified More on trailing stops Volume Alert Beeps and loads the Trade tool when security volume gains the specified amount You specify the symbol and volume Balances Balances View vital account information in the Balances tab All balances are automatically updated every minute or after a transaction whichever happens first View detailed balance information in the Account Detail to
136. the market hasn t closed yet it uses the current price for today s close SMA 100 Day SMA 120 Day Average of the last 100 days close values including today If the market hasn t closed yet it uses the current price for today s close Average of the last 120 days close values including today If the market hasn t closed yet it uses the current price for today s close SMA 200 Day EMA 15 Day Average of the last 200 days close values including today If the market hasn t closed yet it uses the current price for today s close While similar to the SMA above the exponential moving average uses a smoothing factor to give more weight to recent prices while still allowing all data in the 15 day window to influ ence the average EMA 20 Day While similar to the SMA above the exponential Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 328 Technicals EMA 50 Day EMA 60 Day EMA 100 Day EMA 120 Day RSI 10 Day RSI from Close 10 Day moving average uses a Smoothing factor to give more weight to recent prices while still allowing all data in the 20 day window to influ ence the average While similar to the SMA above the exponential moving average uses a Smoothing factor to give more weight to recent prices while still allowing all data in the 50 day window to influ ence the average While similar to the SMA
137. the quantity using the arrow buttons or entering the quantity manu 9 10 ally Keyboard shortcuts o Up Down keys increase or decrease by 5 contracts o Left Right keys decrease or increase in increments of 1 o Shift Up Down keys to increase or decrease by 10 o Shift Left Right keys to increase or decrease by 1 Buy Write Sell Write These strategies have a stock leg and an option leg so when specifying quantity stock will have a 100 1 ratio to contracts Increasing the share quantity will increase contract quantity proportionately Ratio Spread Quantities for the two legs of a ratio spread are required to be in a 2 1 ratio Set the Limit Price Click the Net Credit Debit or Midpoint price in the Trade Ticket to use that price You can also manually enter a different price or use the arrows to select a new price Note that all multi leg option orders are sent as Limit orders Keyboard shortcuts o Up Down keys increase or decrease by 05 o Left Right keys to decrease or increase by 01 o Shift Up Down keys to increase or decrease by 005 o Shift Left Right keys to increase or decrease by 001 If applicable select the Timing for the order Available Timing Choices o Day Causes your order to be canceled at the end of the current day s trading if the order has not been executed All Market Orders are automatically Day orders Orders are generally con sidered to be day orders unless otherwise specified o G
138. to liquidate e Fractional shares Close All must be selected to liquidate a position s fractional shares Orders to sell only the whole share amount leaving the fractions behind will be rejected The Close All feature is also available when placing orders to close out a position from the Trade tool or Symbol Hub Close a Multi Leg Option Position From the Group by Option Strategy tab click on the strategy row and it will high light the entire position Click on the Close Position button or right click over the strategy row and click Close symbol strategy To close only a couple legs of a strategy select them using the Ctrl click method described above The Ctrl click method can also be used from the other two position views Group by Underlying or Ungrouped TIP You can select up to 4 unique option positions within the same underlying to close If it is not a recognized strategy the All In One trade tool will load it into the Custom ticket Account Details Order Status Alerts Balances ioe Posicion nonw Position y CAT Covered Calli Caterpillar Inc Covered Cr 41 92 Cr 41 92 Dr 42 83 CAT Caterpillar Inc 100 77 78 77 77 77 78 CAT 01 20 2017 42 50 Caterpillar Inc Jan 20 1 35 85 34 95 35 85 Realized Gain Loss Transactions Group by Option Strategy Actions v CBM Tax Lot Optim CAT 01 20 2017 45 00 Stock symbols and price and volume JHE shown here and in the
139. tool will not display high low alerts for symbols with a 5 day aver age dollar volume lower than the value spe cified here The Momentum tool can be used to observe the aggregate recent activity uptick downtick refreshed quotes etc of a security Rather than trying to Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 338 watch a symbol s market depth activity to get a feel for the security s momentum the Momentum tool summarizes that data for you These data can be viewed in a graphical and or numerical format e The graphical Momentum display provides bar graph style representations of information on market participant activity allowing you to determine the recent momentum of a security at a glance e The Score is the actual value the bar graph is representing and is determ ined by the Activity Rate amount of total market participant activity and Net Value the sum of increasing to decreasing quote prices from market participants over a period of time e Fora more detailed look at how StreetSmart Edge represents momentum see Understanding the Momentum Tool Create a new Momentum tab 1 Right click on the tab at the top of any Momentum tab and select New Momentum List or click the next to the tabs 2 Enter symbols in the Add Symbol s field Add multiple symbols at once by adding a comma between each symbol 3 Click Add or press Enter to populate the list wi
140. trade price change direction and change from the open as well as the full name of the company or index and exchange Below the Title Bar is the Level I data as well as the Order Status and Position Indicators which show whether your account has open orders or positions in the selected symbol Customize the Level I display by clicking on the E icon or contract hide the Level I data by clicking the up arrows B Options Tab Features In the Trade tool and Symbol Hub trade options via the Options tab as shown below In the All in One tool tabs are customizable to any strategy offered in StreetS mart Edge but you will find the same features below in all three tools See All in One tool for more on this dynamic option trading interface Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 162 Strategy Selector gt gt Trade Ticket senn gt sen 1 Onee Max Gain Uniimited Bresk Even 44 Cancel Last Order gt Save For Later Options Trading Approval Level Special Cond Review Onder Gain Loss 11 Marlos 6100 lt Calculations Estimated Com S6L00 Estimated Cost Calis and Puts Nearest 60 days Sires Around the Money ai Lo _ Bask View v Cas Puts Bom SS BB Actions Strikes Symbol Last Trade unge Bia Calls Aug 16 2064 16 days 4250 MSFT 08 16 2088 42 50 C 1 Option Chains ee 00 gt Calis Aug 22 204 Weekly
141. will be set at a percentage level above and below the average price of the security over the immediately pre ceding five minute period More information on what triggers a Regulatory Circuit Breaker can be found at NYSE or NASDAQ Reaction A temporary price reversal within the prevailing trend Regulation T Call Also called a Fed Call this is the amount an investor must deposit if buying on margin or selling short as required by the Federal Reserve Board s Regulation T Current Federal Reserve requirements are 50 of the cost of the trade Relative Strength A comparison of an individual stock s performance to that of a market index Most times the S amp P 500 or the Dow Jones Industrial Average are used for com parison purposes A rising line indicates that the stock is doing better than the market A declining line indicates that the stock is not doing as well as the mar ket Relative Strength Index RSI Developed by J Welles Wilder in 1978 the Relative Strength Index is one of the more popular momentum indicators Its name Relative Strength Index is slightly misleading as it does not compare the relative strength of two secur ities but rather the internal strength of a single security The RSI is a price following oscillator that ranges between 0 and 100 Wilder argues that the RSI usually tops above 70 and bottoms below 30 and that these tops and bottoms usually form before the underlying price changes direction When
142. with conditions that have already been met or are imminent will not activate and you will be presented with an Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 247 opportunity to make changes to your order e After a conditional order is triggered and the order is sent the conditions are deactivated The same conditional order cannot trigger more than once without being reactivated first e If you are not logged on when a conditional order fires a message indicating that the order triggered in your absence will display in the Messages and as a pop up message at the bottom of your screen at login Placing Conditional Orders Place Conditional Orders to send orders to the market only when certain market conditions occur They can help you manage risk on open positions or help you take advantage of opportunities as favorable market conditions appear depend ing on the type of conditions you use to trigger the order amp Conditional orders can be placed from the Conditional Orders tab of the Trade tool or Symbol Hub In the All in One tool if a Conditional Orders tab isn t already open you ll need to create one See the All in One help topic for more inform ation Check the status of or edit your conditional orders from the Order Status tab in the Account Details tool 1 In the Conditional Orders tab either in the All in One tool Trade tool or Sym bol Hub enter a Conditional Orde
143. you invested in securities plus any excess cash minus funds borrowed on margin Your margin equity divided by the market value of your margin account This amount reflects the percentage of the current margin account value you would receive if you liquid ated the margined securities paid off any margin debt and withdrew the funds Options cash account positions and segreg Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 76 Available Values Descriptions ated money market funds are not included when calculating the equity percentage Day Trade BP This field will only applies if we identify you as a pattern day trader there are rules gov erning this designation For information about Day Trading Buying Power DTBP please consult your Schwab Trading Services Broker Positions Positions Open the Positions tab to view a list of all open positions in your account amp Positions can be found in the Account Detail tool lt gt Get a demonstration and more information on the Positions tab Other ways to access Positions information e Several tools in the software such as the Trade tool Symbol Hub and Option Chains will display a small position indicator tile PR if you hold a pos ition in the symbol being displayed Click the tile to display a pop up window showing the positions held in the security You also have the option of clos ing the position from this po
144. your inquiry The interest period begins on the second to last day of each month Margin Call If your margin equity falls below the percentage level required under Schwab or regulatory require ments if you make a purchase for which you have insufficient equity to meet the Fed s require ments or if you have insufficient cash to cover your open uncovered option or spread positions you will be subject to a margin call If there is a margin call on your account it may be displayed in the Balances Bar at the top of your application and immediate action on your part is required However Schwab reserves the right to initiate immediate liquidation procedures without notice Option Requirements Cash Secured Put Displays the Cash Secured Requirement 100 Assignment of assignment value of the put position when a Cash Secured Equity Put is in the account This balance will only display if there is a cash secured equity put requirement on your account Spread Requirement Amount of Cash set aside to cover the spread margin requirement This balance will only dis play if there is a spread requirement on your account Unsettled Funds How do I cover my trades If your purchase exceeds the funds available in your account in most cases you can cover your trade by making a deposit of funds or marginable securities on or before trade settlement If you choose to cover the amount due by selling a dif ferent sec
145. 0 0 0140 43 6487 gt 27 50 09 20 2014 27 50 P 1 60 0 80 155 1 70 0 4601 0 0167 41 2128 gt 30 00 09 20 2014 30 00 P 2 93 1 23 3 00 3 30 0 6893 0 0143 39 6997 gt 32 50 09 20 2014 32 50 P 4 90 1 70 5 10 5 30 0 8486 0 0096 39 9716 gt 35 00 09 20 2014 35 00 P 7 40 7 60 0 9390 0 0049 39 6164 Source StreetSmart Edge Trade Setup Here is the breakdown for Michelle s setup and trade e Current XYZ Price 27 98 e Current Bid Price XYZ 09 20 2014 25 00 Put 0 65 e Current Ask Price XYZ 09 20 2014 27 50 Put 1 70 e Current Ask Price XYZ 09 20 2014 30 00 Call 0 85 e Current Bid Price XYZ 09 20 2014 32 50 Call 0 30 e Michelle s Trade Sell to Open 1 XYZ 09 20 2014 25 00 Put 0 65 Buy to Open 1 XYZ 09 20 2014 27 50 Put 1 70 Buy to Open 1 XYZ 09 20 2014 30 00 Call 0 85 Sell to Open 1 XYZ 09 20 2014 32 50 Call 0 30 Net Debit 0 65 1 70 0 85 0 30 1 60 The Profit Loss profile for this trade is as follows Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 230 Profit Short Put Long Put Long Call Short Call strike price strike price strike price strike price 90 160 27 50 30 00 32 50 Loss Lower Stock price Higher ote Chart depicts strategy at expiration e Maximum Gain 27 50 25 00 1 60 0 90 e Maximum Loss 1 60 e Lower Break Even Long Put Strike Price Net Debit 27
146. 0 14 2 84 2 97 0 7508 0 0182 16 6483 gt 85 00 07 19 2014 85 00 C 1 24 0 11 1 21 1 25 0 4894 0 0234 14 9510 gt 87 50 07 19 2014 87 50 C 0 50 0 08 0 42 0 45 0 2263 0 0195 15 5271 gt 0 00 07 19 2014 90 00 C 0 19 0 01 0 18 0 20 0 1039 0 0139 17 9003 gt 92 50 07 19 2014 92 50 C 0 06 0 11 0 0480 0 0087 19 9088 Source StreetSmart Edge Trade Setup Here is the breakdown for Rachael s setup and trade Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 220 e Current XYZ Price 85 41 e Current Ask Price XYZ 07 19 2014 82 50 Call 2 97 e Current Bid Price XYZ 07 19 2014 85 00 Call 1 21 e Current Bid Price XYZ 07 19 2014 87 50 Call 0 42 e Current Ask Price XYZ 07 19 2014 90 00 Call 0 20 e Rachael s Trade e Buy to Open 1 XYZ 07 19 2014 82 50 Call 2 97 e Sell to Open 1 XYZ 07 19 2014 85 00 Call 1 21 e Sell to Open 1 XYZ 07 19 2014 87 50 Call 0 42 e Buy to Open 1 XYZ 07 19 2014 90 00 Call 0 20 e Net Debit 2 97 1 21 0 42 0 20 1 54 The Profit Loss profile for this trade is as follows Profit Long Short Short Long strike price strike price strike price strike price 96 0 154 82 50 85 00 87 50 90 00 Chart depicts strategy at expiration e Maximum Gain 85 00 82 50 1 54 0 96 e Maximum Loss 1 54 e Lower Break Even Lowest Strike Price Net Debit 82 50 1 54 84 04 e Upper Break Even Highe
147. 0 Day RSI e Return on Equity is greater than 15 00 e Avg Vol 5 Day is greater than Avg Vol 1 Month Search Volume Over 1 Month Avg Vol List for Top 30 stocks whose Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 309 Screen Name Strong Stocks with 20 Retracement 15 Day SMA Crossing Above 50 Day SMA Pre Defined Criteria Current Price is greater than 20 00 Current Price is greater than 5 Day Low Avg Vol 6 Month is greater than 250 000 15 Day SMA is greater than 50 Day SMA P E Ratio is greater than 50 00 Avg Vol 5 Day is greater than Avg Vol 1 Month Search Relative Strength List for Top 30 stocks whose Current Price is greater than 10 00 Avg Vol 6 Month is greater than 250 000 15 Day SMA is greater than 50 Day SMA 50 Day SMA is greater than 120 Day SMA 50 Day SMA is greater than 200 Day SMA Difference between 52 Wk High and Current Price is less than 0 5 Current Price is greater than 50 Day SMA Search Relative Strength List for Top 30 stocks whose Current Price is greater than 25 00 Avg Vol 6 Month is greater than 250 000 15 Day SMA is less than 50 Day SMA 50 Day SMA is greater than 120 Day SMA 50 Day SMA is greater than 200 Day SMA Difference between 15 Day SMA and Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 310 Screen
148. 010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 118 choose your action at the point of submitting the order in lieu of Step 12 below 4 Adjust the quantity using the arrow buttons or entering the quantity manu ally Keyboard shortcuts o Up Down keys increase or decrease in increments of 500 o Left Right keys increase or decrease in increments of 100 o Shift Up Down keys increase or decrease by 10 o Shift Left Right keys increase or decrease by 1 TIP If you want to base your order quantity on a dollar amount rather than a number of shares click the button above the Quantity field Enter the dollar amount and click OK to show the number of shares that amount will buy whole shares only 5 Select a Venue Most common will be Smart but other choices may include Pre Market and After Hours If you are approved to trade via Direct Access you will also have ARCA and NSDQ as choices See the Equity Trad ing Venues for more information 6 Choose an Order Type Available Order Types o Limit An order to buy or sell a security at a specific price or better As opposed to a market order limit orders might not be filled quickly or at all if the market moves away from the spe cified price A limit order guarantees price but not execution o Market An order to buy or sell a security at the prevailing market price Sometimes referred to as at the market Unless trading is hal
149. 015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 320 Analyst Ratings Recommend Sell Recommend Num Recommendation Avg Company Performance Net Income Revenue Earnings Shares Outstanding EPS ttm EPS Latest EPS Yr 0 EPS Yr 1 EPS Yr 2 EPS Yr 3 Percentage of Sell recommendations from ana lysts covering the issue Total number of recommendations from analysts covering the issue Average recommendations from analysts cov ering the issue 1 0 Buy 5 0 Sell Gross sales minus taxes interest depreciation and other expenses Total dollar amount collected for goods and ser vices provided Revenues minus cost of sales operating expenses and taxes over a given period of time Number of shares of a corporation that have been issued Earnings Per Share trailing twelve month shows net income divided by the average num ber of shares outstanding for a company for the last 12 months Earnings Per Share shows net income divided by the average number of shares outstanding fora company for the current fiscal year Earnings Per Share shows net income divided by the average number of shares outstanding for a company for the last fiscal year Earnings Per Share shows net income divided by the average number of shares outstanding fora company for the last fiscal year minus 1 Earnings Per Share shows net income divided by the ave
150. 1 Sell 100 XYZ 20 Day 1 Buy 100 ABC 10 Day 2 Sell 100 ABC 15 The purchase of ABC is made using unsettled proceeds generated by the sale of XYZ which will not settle until Day 4 Because the ABC is sold prior to set tlement of the XYZ proceeds used to make that purchase the sale results ina Good Faith Violation Settled and Unsettled Funds Settled funds are incoming cash such as a deposit or wire available Margin Loan Value and settled sale proceeds of fully paid for securities If the account has sufficient settled funds there are no restrictions as to what may be purchased If a security is purchased using settled funds there are no requirements surrounding the timeframe of when the newly purchased security can be sold If the credit balance is a result of an unsettled sale of securities certain restric tions may apply Unsettled proceeds from existing long positions can be used to purchase additional securities as long as the new purchase is not sold prior to the settlement date of the original sale that generated the proceeds used to finance the purchase If it is sold prior to the settlement date of the funding sale without additional funds being deposited it will be considered a Good Faith Violation Example If you sell a fully paid for security on Monday the ist you can use the proceeds to purchase securities prior to the settlement day of Thursday the 4th However if you purchase securities before Thursday the 4t
151. 1 can be changed You can also check the Ten Grid Lines box to display lines from 0 1 to 0 9 instead of two lines at 25 and 75 Formula The formula for an m period stochastic of ann period RSI is Latest RSI LowestRSinLastm Periods SRST 100 t M Highest RSlinLastmPeriods Lowest RSiinLastmPeriads The Commodity Channel Index CCI meas ures the variation of a security s price from its statistical mean High values show that prices are unusually high compared to aver age prices whereas low values indicate that prices are unusually low Contrary to its name the CCI can be used effectively on any type of security not just commodities Formula The formula is Dp gt DP CC I i t x 1 015 X Bp Br 72 imt 72 imt Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 282 Momentum Rate of Change Stochastic Oscillator where _ High Low Close T JP 3 Measures the amount the price of a security has changed over the last 14 days If the current trading session today hasn t closed yet it uses the last sale price You can change the periods used in the calculation from the default of 14 Formula The formula for an n period Momentum is Momentum Price Price _ Change in price between the current price and the close 12 periods ago divided by the price 12 periods ago You can change the number of pe
152. 15 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 304 Customize a Predefined Screen You can edit predefined screens by going to the Criteria tab and making changes to the screen Click Save Screen at the bottom to save your changes Close Screens Hover your mouse over the tab label and click the X to close the tab Or you can right click on the tab and select Close screen You can also close tabs from the Actions drop down Rename a Screen Right click on the tab label and select Rename screen or double click on the tab label The label will change to a field you can edit Type the new name for the tab and press Enter You can also rename tabs from the Actions drop down Save to Watch List Save the results of screener to a watch list by clicking the Save to Watch List button at the bottom of the list Open in the Watch List tool by right clicking on a new Watch List tab and selecting Open Watch List Update Period You can adjust how frequently most of the screens update by clicking on the Update drop down and Selecting a different period Each one can have its own Update setting except Performance by Sector Customizing the Display Rearrange Tabs To change the order of the Screener tabs in your tool click on a tab label and drag it to where you want the tab to be Streamline View To conserve space click the streamlined view icon which collapses the tab row and hides the Actions menu While in str
153. 2 0 ccc cece cece ceccececceceees 105 Portfolio Performance coos asccecaceutSncuce eisd eed eteseiexcadablesiuacieddecnesacehss 106 Trading and Quotes l ooo cc ccc cece cececeececececeseeeees 108 Trading and QUOtES og oe poo cee Sau eadedee e e a aea 108 Direct Access Order Routing cccecccccececececececcececececececcccecececeres 110 Stock amp ETFs Tab Features scp coi ccepeeease ds teccenchiereieasedsgui ere eoetee 110 Mte Bar te 2 lesa at tes te ue es a Nee 115 Placing Equity Orders ase eee eect ne See Beh oer dee o aa esis 118 Trading Hot HS era ces ce et cess vis ee are late de a Suse Jade 122 Changing or Canceling Orders 0 0 0 20 cccc cece cece cece ce ceccecececeeeeeeees 124 Equity Trading Venues aaao aoaaa aoaaa aoaaa cece cae cdan cesdceese dice DDL L aonan 125 Customizing the Level I Display 0 00 2 0c ccc cece cc ecccceccececcececeeees 127 Customizing the Market Depth Display 0 0 0 0 2 c cece ec ec ec eceececececeeeees 128 Trading SOUINGS oo cetcnca cues ied dacs ancien denahiiecaclsddaae sass ccnalehteidddewsdpen daadinalsltis 131 Order Quantity Settings 2220 00 00 0 ooo ccc cc cc cccncecceccccccccesceeesteseeees 133 Extended Hours Trading 2 0 20 2 coco cece ccc cecccceccececcececcececeececsesesees 134 Risks of Extended Hours Trading 0 20 2 cece ccc ecccceccececcececcecees 135 How Smart Orders Route 0 0 0 o cece ce cece ce cece cece ec ece
154. 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 87 Positions P amp L P amp L P amp L Share Position Dollar Value Price P amp L Calcs Quantity Position 4 Margin requirements may be changed due to concentrated positions non diver sification changes in market conditions or at Schwab s discretion Unrealized profit or loss on the position in dollar format P amp L is calculated based on an average price paid per share NOTE Lot accounting is not used so P amp L is NOT calculated on a LIFO FIFO basis There are limitations on the reporting of trans actions events that make up the P amp L amounts Unrealized profit or loss on the position as a per centage P amp Lis calculated based on an average price paid per share NOTE Lot accounting is not used so P amp L is NOT calculated on a LIFO FIFO basis There are limitations on the reporting of trans actions events that make up the P amp L amounts Unrealized profit or loss based on the average cost per share Dollar value for existing position s in the account Calculation uses the bid price for long positions and the ask price for short positions Price used as the current price in P amp L calculations Quantity held in selected account For stocks or mutual funds this field reflects the number of shares you currently hold For fixed income securities this field reflects the face value of the
155. 23 days gt Calls Aug 29 200m Weekly 30 days Stock symbols and price a illustrative purposes only 23 008 in 0 02 Option Contracts selected contract in yellow nd volume data shown here and in the software are for Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients Options Tab Features Title Bar Strategy Selector Trade Ticket Copyright 2010 2015 Charle Enter the symbol underlying the options you want to potentially trade and click Go or press Enter The Title Bar is available in several tools and includes some basic price data as well as the Tool Link Icon For more on these features see Title Bar Click the Strategy Selector to choose a strategy whether a straight Call or Put or multi leg This will adjust the Trade Ticket to display the cor rect order entry fields and it will change the Option Chains to display contracts or contract pairings applicable to the strategy For a more technical look at each type of option strategy see Option Strategies Overview The trade ticket area available both in the Trade tool and Symbol Hub is where you set up and place option orders See more on Placing Option Orders TIP You can hide the Trade Ticket by clicking the double arrow tab f in the upper right corner Click a
156. 3 Click Reset to Default Colors should you wish to return to the original col ors TIP By default changes only apply to the tab in which you are changing the colors If you want your changes to apply to that tab in all Account Details tools in your layouts check Apply to all tab name tabs at the bottom of the Col ors window Taking Action on Orders and Positions StreetSmart Edge puts order and position management at your fingertips throughout the platform In addition to everything you can do in the Order Status and Positions tabs of the Account Details tool you can also view change cancel edit and add brackets to orders just about anywhere you see an order or position indicator There are two types of order and position indicators that give you quick access to your orders and positions O and P tiles Found at the top of the Chart Trading and Symbol Hub tools They indicate you have either an order or position in the security being viewed in the tool l0 gt G Click on the O or P tile to access a variety of actions on those orders or positions without having to switch to your Account Details tool e The O tile shows all open order s for the sym Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 40 Chart Flags Bid Ask Quotes Order Status Order Status bol being viewed as well as giving you access to Cancel Change if available or Edit Add Bra
157. 4 Access the Chart Tab menu by right clicking the name tab at the top of the chart The following features are available from this menu Chart Tab Right Click Menu Close tab name Rename tab name Duplicate tab name Save tab name as tem plate Save tab name as file New Chart Open Chart from Template Open Chart from File Manage Chart Templates Closes the tab You can also close a tab by clicking the X that displays in the tab when you move your mouse over it Makes the tab name editable so that you can type a new name for the tab You can also double click the tab name to edit it Creates an identical tab with the same name settings studies overlays etc This can save you the time and effort of recre ating your customizations in another chart window Charts saved as Templates essentially become part of the software and are accessible by selecting Open Chart from Template in the right click menu This is useful when you want to use the set tings of this chart as a template for other charts Choose to save a chart as a File if you will want to access the chart outside of the software For instance you can back up your chart files or even share the file with someone Opens a new chart tab in the current chart tool Select from the list of saved chart tem plates Edge comes with several built in or choose Other to open a chart template file saved elsewhere If
158. 5 000 as the total quantity but 1 000 as the Max Floor value Your order will display as 1 000 shares but if yours is the only bid when an offer arrives for 10 000 shares at your price your entire 5 000 shares will execute However if 3 other bids for 3 000 shares each were behind you at the same price only your displayed 1 000 would execute along with 9 000 shares from the other three bids Minimum Acceptable Quantity MAQ Instructs the broker to fill a minimum share amount of an order Minimum Quantity Instructions to buy or sell a specified number of shares at a limit price with the condition that the first fill must be for a minimum number of shares Momentum Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 403 Momentum is an overbought oversold indicator that measures the velocity of price changes for a set period of time Momentum is measured by continually cal culating price differences between the most recent price and the price n periods ago then plotting these differences around acenterline Ifthe latest price is greater than the first price a positive value is plotted above the centerline If the latest price is below the first price a negative value is plotted below the center line The greater the change in prices the greater the change in Momentum If prices are rising and the momentum line is above the centerline and rising an up trend may be accelerating When
159. 50 1 60 25 90 e Upper Break Even Long Call Strike Price Net Debit 30 00 1 60 31 60 Note commissions have been excluded to simplify the calculations Short options can be assigned at any time and therefore option sellers assume the risk of assignment at any point up until and including expiration Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account Qualified Spreads With a Qualified Spread the purchased option is required to expire on the same or later expiration date than the option sold When there is more than one pos sible way to pair available options in your Account Schwab has the discretion to determine the spread pairings Schwab may pair options in a manner that does not produce the lowest possible margin requirements Note For butterfly and condor spreads each option leg must have the same expiration date to qualify as those types of spreads Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 231 Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions
160. 53 258 Global Investing Clients with a Global Investing account with Schwab com can access trading and account information via the Global tool of StreetSmart Edge amp Click Global in the Launch Tools menu to open the Global Investing site in the StreetSmart Edge window If you have an account it will automatically log you in You may have one Global tool open at a time If you do not have a Global account the tool will take you to the International Investing section of Schwab com where you can learn more about international investing through Schwab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 259 Charts Charts Overview Charts provide a quick way to absorb data and understand a security s per formance They provide vast amounts of data in an efficient user friendly cus tomizable format making it easy to analyze price and volume movements in real time Full featured charting is available in both the stand alone Chart tool accessed through the Launch Tools menu and in the Symbol Hub StreetSmart Edge has advanced charting features that give you the freedom to customize your charting experience to your precise specifications Features avail able include more than 30 customizable studies the ability to draw trend sup port and resistance lines and symbol overlays chart types including mountain bar line and candlestick and much more You may displa
161. 57 50 C gt 60 00 07 19 2014 60 00 C gt 62 50 07 19 2014 62 50 C gt 65 00 07 19 2014 65 00 C gt 67 50 07 19 2014 67 50 C gt 70 00 07 19 2014 70 00 C gt 72 50 07 19 2014 72 50 C gt 75 00 07 19 2014 75 00 C Source StreetSmart Edge Trade Setup Last Trade 12 24 10 00 7 68 5 65 3 84 2 42 1 44 0 78 0 39 0 20 1 06 0 70 0 74 0 60 0 49 0 36 0 21 0 13 0 10 0 06 Here is the breakdown for Tom s setup and trade Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 214 12 30 10 00 7 70 5 60 3 80 2 41 1 41 0 77 0 40 0 21 Ask 12 60 10 20 5 70 3 85 2 42 1 42 0 78 0 42 0 22 0 9839 0 9408 0 8913 0 8019 0 6712 0 5132 0 3572 0 2273 0 1354 0 0777 0 0045 0 0140 0 0207 0 0297 0 0375 0 0410 0 0382 0 0310 0 0226 0 0155 Iv 35 4094 38 3496 35 7709 34 3402 33 3933 33 1164 33 0207 33 1067 33 5548 34 2835 e Current XYZ Price 64 90 e Current Ask Price XYZ 07 19 2014 62 50 Call 3 85 e Current Bid Price XYZ 07 19 2014 65 00 Call 2 41 e Current Ask Price XYZ 07 19 2014 67 50 Call 1 42 e Tom s Trade e Buy to Open 1 XYZ 07 19 2014 Call 3 85 e Sell to Open 2 XYZ 07 19 2014 Calls 4 82 2 41 x2 4 82 e Buy to Open 1 XYZ 07 19 2014 Call 1 42 e Net Debit 3 85 4 82 1 42 0 45 The Profit Loss profile for this trade is as follows Profit Long Short Long
162. 7 2 29 0 8082 0 1120 0 0094 gt 31 00 08 16 2014 31 00 C 1 50 0 18 1 48 1 50 0 6735 0 1521 0 0126 gt 32 00 08 16 2014 32 00 C 0 90 0 10 0 88 0 90 0 5076 0 1751 0 0136 gt 33 00 08 16 2014 33 00 C 0 48 0 06 0 47 0 49 0 3365 0 1632 0 0124 b gt 34 00 08 16 2014 34 00 C 0 22 0 00 0 23 0 24 0 1965 0 1245 0 0094 gt 35 00 08 16 2014 35 00 C 0 11 0 01 0 10 0 12 0 1051 0 0807 0 0063 Trade Setup Here is the breakdown for Lauren s setup and trade e Current XYZ Price 32 00 e Current Bid Price XYZ 08 16 2014 30 00 Call 2 17 e Current Ask Price XYZ 08 16 2014 32 00 Call 0 90 e Current Bid Price XYZ 08 16 2014 34 00 Call 0 23 e Lauren s Trade e Sell to Open 1 XYZ 08 16 2014 Call 2 17 e Buy to Open 2 XYZ 08 16 2014 Calls 1 80 0 90 x 2 1 80 e Sell to Open 1 XYZ 08 16 2014 Call 0 23 e Net Credit 2 17 1 80 0 23 0 60 The Profit Loss profile for this trade is as follows Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 217 Short Long Short strike price strike price strike price 30 00 32 00 Lower Stock price Note Chart depicts strategy at expiration e Maximum Gain 0 60 e Maximum Loss 32 00 30 00 0 60 1 40 e Lower Break Even Lower Strike Price Net Credit 30 00 0 60 30 60 e Upper Break Even Higher Strike Price Net Credit 34 00 0 60 33 40 Note commissions h
163. Account Trading News Option Chains These settings apply to the entire program Filters Include Weekly Options M Include Quarterly Options M Include Adjusted Options Calls amp Puts chain only What else do I need to know about mini options Here s some additional information about mini options to keep in mind e Price increment Mini options are bought and sold at the same price incre ments on the underlying security as standard options This means that options on AAPL AMZN and GLD trade in penny increments up to 3 and nickel increments above 3 options on GOOG trade in nickel increments up to 3 and in dime increments above 3 and options on SPY trade in penny increments for all price levels Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 189 e Commissions Schwab s commission structure for mini options is the same as for standard options 8 95 0 75 contract To keep your commissions low please consider the per contract component of the option commission when choosing between mini and standard options For example although 10 mini option contracts could be used to represent the same 100 share con tract size as a single standard contract the commission cost would be higher to purchase 10 mini option contracts than one standard option con tract e Mini option pairing Mini options can be paired with stock in a 1 10 ratio or with standard optio
164. Actual Value DJT Dow Jones Utility Index Actual Value DJU Dow Jones Industrial Average DJX Pharmaceutical Index DRG Dow Jones Transportation Average DTX Dow Jones Utility Average DUX Down Volume AMEX DVOA Down Volume Boston Stock Exchange DVOB Down Volume CBOE DVOCO Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 419 Down Volume NYSE Decliners DVOL Down Volume Midwest DVOM Down Volume Pacific Stock Exchange DVOP Down Volume Pacific Stock Exchange Options DVOPO Down Volume NASDAQ NMS Equities DVOQE Down Volume NASDAQ Listed Stocks Decliners DVOT Down Volume NASDAQ OTC Bulletin Board DVOUE Down Volume Philadelphia Stock Exchange DVOX Down Volume Philadelphia Options DVOXO SIG Oil Exploration Index EPX ISE FX Euro Index EUI ISE Spot EUR USD EUU CBOE Interest Rate 5 Year Index FVX ISE Spot GBP USD GBP CBOE Gold Volatility Index GVZ S amp P Health Care Index HCX PHLX Housing Index HGX AMEX Hong Kong Option Float Rate Index HKO AMEX Hong Kong 30 Index HKX NASDAQ OTC Index Industrials INDS NASDAQ OTC Index Insurance INSR CBOE Short Term Interest Rate Comp Index IRX Issues Traded AMEX ISSA Issues Traded AMEX Options ISSAO Issues Traded Boston Stock Exchange ISSB Issues Traded CBOE ISSCO Issues Traded Midwest ISSM Issues Traded Pacific Stock Exchange ISSP Issues Traded Pacific Stock Exchange Options ISSPO
165. Bid Current inside bid price as of the screen s last update Ask Current inside ask price as of the screen s last update Bid Size The quoted size of the inside bid price as of the screen s last update Ask Size The quoted size of the inside ask price as of the screen s last update Held by Institutions Percentage of outstanding shares held by insti tutional investors Volume Number of shares contracts the security has traded for the day Avg Vol 5 Day Average volume for the stock over the last 5 days Avg Vol 20 Day Average volume for the stock over the last 20 days Avg Vol 1 Month Average volume for the stock over the last month Avg Vol 6 Months Average volume for the stock over the last 6 months Avg Vol YTD Average volume for the stock since the begin ning of the calendar year Vol Over Yes Difference between current Volume and yes terday s Vol terday s volume expressed as a percentage Vol Over 5 Day Avg Difference between current Volume and the aver Vol age volume for the last 5 days expressed as a percentage Vol Over 20 Day Difference between current Volume and the aver Avg Vol age volume for the last 20 days expressed as a percentage Vol Over 1 Mo Avg Difference between current Volume and the aver Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 318 Basic Vol Vol Over 6 Mo Avg Vol Vol Over YTD Avg Vol Avg Vol 5 Da
166. Com Use these fields to set the equity and option commissions missions to use when estimating the cost or proceeds that will result from the trade You can set commissions per trade or per stock contract depending on your commission structure Order Quantity Settings Customizing your Order Quantity defaults may help save time and reduce errors when placing orders amp Set up default order quantities in the Settings menu under the Trading tab and then the Order Quantity sub tab NOTE Default quantities do not apply to orders entered via Hot Keys or when closing a position if you have Use position quantity with closing action checked Order Quantity You have a choice to either specify a default quantity or use the last entered quantity if one is available You can also assign default quantities to specific symbols e Use last entered quantity when available will set the default quantity to the size that is currently in the quantity field of the Trade tool So no mat ter what stock you are viewing the order quantity will not change e Choose Use the default quantity to use the default Share and Contract values you specify Does not apply to orders entered via Hot Keys or when closing a position if you have Use position quantity with closing action checked e Override the default quantity with the position quantity when closing a pos ition by checking Use position quantity with closing action If checked when you load a stock i
167. Day Chg P amp L P amp L P amp L based on today s open price if you have elected this option via your Account Settings Today s gain or loss for your equity and option positions expressed on a per share or per con tract basis The calculation will be based on the gain or loss for your positions since the previous market close Marked to market or your cost if purchased today It includes estimated com missions on positions established today Please note that the per share or per contract change calculation for your positions estab lished prior to today can also be based upon today s open if you have elected this option via your Account Settings Today s percent gain or loss for your equity and option positions The calculation is based on the gain or loss for your positions since the previous market close Marked to market or your cost if purchased today It includes estimated com missions on positions established today Please note that the percent change calculation for your positions established prior to today can also be based on today s open if you have elec ted this option via your Account Settings The percentage value will be taken out to two decimal places Rounding the 2nd decimal place holder up if the third decimal is equal to or greater than 5 and rounding down if it is less than 5 Unrealized profit or loss on the position in dollar format P amp L is calculated based on an average price paid
168. For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current Alerts tab or to a current and future Alerts tabs The default is to apply the set tings only to the current tab but if you prefer the settings to apply to all select Apply to all Alert tabs at the bottom of the Columns and Settings window before clicking OK Alert Column Descriptions See Alert Columns and Settings for directions on setting up your Alerts tab dis play Column Description Status Indicates whether the alert is Active Inactive or the conditions of the alert have been met An orange square indicates that the alert is Active and a red square indicates that the alert is Inactive Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 53 Column Description Name Name you assigned to the alert TIP While not required it is good practice to name your alerts as those names are referenced in right click menus and other areas of the software Description Shows the if condition of the alert For example If ABCD share P amp L gains 2 Notification Shows how you will be notified if the condition is met and the alert is triggered Trigger Value If the alert has a trigger price that adjusts such as one based on profit or l
169. IPC 1015 6153 41 e Activate deactivate or edit conditional orders e View submit edit or delete Saved orders amp Order Status can be found in the Account Detail tool TIP You can also quickly see whether you have open order or positions fora security by clicking the O or P 0 in the upper left corner of the Trade tool or Symbol Hub Viewing Order Execution Detail See the details of each order including order number venue time fill price s and more by clicking on an order and clicking Order Detail to expand the Order Detail display You can leave the Order Detail display open and click through your orders to see the details of each one or you can close it by clicking Order Detail again Filter Order Status View Customize and streamline your Order Status display from the Actions drop down by choosing one of the following e Show All Orders default e Show All Live Orders or e Show All Live Orders and Today s Activity Canceling an Order The Order Status window enables you to cancel open orders Click an order and click Cancel Order at the top of the window or right click on the order and select Cancel Order The software will ask you to verify the action Canceling ALL Orders You can cancel one order as described above or you can cancel all open orders Click Actions gt Cancel All Open Orders to initiate the canceling of all orders To cancel all orders for one symbol right click on the symbol and selec
170. ITPIQIRISITIUIVIWIX NX Zz Rate of Change The Rate of Change percent is a momentum oscillator that measures the per cent change in price from one period to the next The Rate of Change is plotted as an oscillator that fluctuates above and below a zero line Ratio Spread A strategy consisting of simultaneously buying and selling an unequal number of option contracts with different Strike prices but with the same underlying secur ity type long and short call options or long and short put options and expir ation date When a ratio spread has more short options than long options simply called a ratio spread it has substantial or unlimited risk of losses In a ratio back spread the long side has the higher number of contracts and the risk is Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 409 limited Ratio spreads may be opened at a credit or debit and may havea bullish bearish neutral or dual nature RCB Regulatory Circuit Breaker Indicator Stocks that have triggered the regulatory circuit breaker will be annotated with a RCB indicator in the Title Bar of a window National securities exchanges and FINRA have implemented a new limit up limit down mechanism FINRA Rule 6190 to combat extraordinary market volatility The new regulation mandates that firms prevent trades in listed equity securities from occurring outside of a specified price band which
171. Input assumes a continuous dividend over the life of the options being priced so a 5 yield would assume an annual dividend of 5 that would pay daily It defaults to the actual dividend yield paid over the last year for that stock TIP If you are not expecting a dividend payment during the life of the option you can set this to 0 Output Columns Theo Value Theo Delta Theo Gamma Shows the theoretical value of the option as a result of the changes to the inputs This could be thought of as a theoretical Midpoint price Shows the Delta after the input changes are taken into account This represents the expected change in value for that option for the next 1 point change in the Underly ing price based on the values calculated Shows the Gamma after the input changes are taken into account This represents the expected change in Delta for the next 1 point change in underlying value Theo Rho Theo Theta Theo Vega Shows the Rho after the input changes are taken into account This represents the change in option value for the next 1 point change in interest rates Shows the Theta after the input changes are taken into account This represents the change in option value for the next day passing Shows the Vega after the input changes are taken into account This represents the change in option value for the next point increase in Implied Volatility Theo IV This shows the Implied Volatility for each option
172. LE Short Strangle XYZ trades at 25 00 share An investor believes that the stock will remain flat in the near term He places a short strangle selling one 30 call for 1 00 and selling one 20 put for 1 00 Since each contract represents 100 shares the investor receives a cash credit of 200 00 To break even or make a profit the stock must trade between 18 00 share and 32 00 share If the stock increases or decreases past these prices the investors suffers a loss The maximum profit the investor can earn 2 is if the stock closes between 20 and 30 at expiration In that price range the investor would retain the entire premium Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 212 Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the
173. Low S2 Pivot RI S1 R2 Pivot RI S1 Adapts the standard RSI to a smoothing con stant Customizable default of 14 periods For calculation purposes Adaptive RSI is somewhat similar to an exponential moving average but instead of averaging prior val ues using a fixed percentage it uses a vari able percentage based on the RSI Formula ARSI Close fort lt n ARSI ARSI se Close ARSI fort gt n Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 279 Chaikin Money Flow Money Flow Money Flow Percent Put Call Ratio Open Interest RSI sce 2 5 where 100 and n is the RSI period i e an n period RSI An oscillator indicating the volume of money flowing in and out of a security over a spe cified period The indicator line moving above and below the zero line indicates buy ing or selling pressure respectively For instance a security whose price is trending up but whose Chaikin Money Flow is neg ative might be on the verge of a trend reversal Money Flow keeps a running total of the money flowing into and out of a security The direction of the Money Flow line is the important component to watch not the actual dollar amount This indicator can be used to confirm underlying strength or weak ness of a price trend Formula The formula for an n period Money Flow is d _ j d A MoneyFlow gt
174. Market Depth chart and latest headlines e Charts Opens the full featured Chart tool with the symbol loaded e Option Chains Option chains display automatically if you select the Options tab though you can switch to other Live Data or Research views if you have the Options tab open e News Opens the full featured News tool with the latest headlines for the symbol loaded Click a headline to open in the article in the reading pane e Market Depth Shows streaming Market Depth and Time amp Sales data for the symbol Right click in the Market Depth or click Actions gt Summary Market Depth gt Market Depth Settings to customize your Market Depth display TIP For both the Summary and Charts tab click on the down arrow in the tab name to select the layout for the tab For instance you can choose to display two charts side by side or one on top of the other Click the X in the top right corner of a chart if you wish to close it and just display one The Research panel displays Fundamental data for the symbol such as com pany profile earnings ratings and metrics Minichart Carousel scomx Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients When
175. Name 15 Day SMA Crossing Below 50 Day SMA Strong Fundamentals with Bottoming Price Climax Sell off Pre Defined Criteria 50 Day SMA is less than 0 5 e Current Price is greater than 50 Day SMA Search Relative Strength List for Bottom 30 stocks whose e Current Price is greater than 10 00 e Avg Vol 6 Month is greater than 250 000 e 15 Day SMA is greater than 50 Day SMA e 50 Day SMA is less than 120 Day SMA e 50 Day SMA is less than 200 Day SMA e Difference between 15 Day SMA and 50 Day SMA is less than 0 5 e Current Price is less than 50 Day SMA Search Relative Strength List for Top 30 stocks whose e Avg Vol 6 Month is greater than 250 000 e Margin is greater than 17 00 e Return on Equity is greater than 15 00 e Return on Asset is greater than 10 00 e Dividend Payout Ratio is greater than 0 00 e 50 Day SMA is less than 200 day SMA e Current Price is greater than 5 00 Search Volume Over 6 Month Avg List for Top 30 stocks whose Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 311 Screen Name Uptrend and Currently Oversold Downtrend and Currently Overbought Oversold and Gaining Momentum Pre Defined Criteria Current Price is greater than 5 00 Low is less than 20 Day Low Avg Vol 6 Month is greater than 250 000 15 Day SMA is less than 50 Day SMA Relative Strength is less th
176. Orders Once you submit a primary order with a bracket or add brackets to a position the bracket portion of the order will display as a contingent order in the Order Status tab of your Account Details tool You can also change or cancel brackets and orders associated with them via the Order Status tab just as you can with non bracketed orders Brackets on Orders e When you first submit a primary order with brackets you will see that the bracket quantity displays as zero 0 Brackets only become active once a fill has been received on the primary order As fills are received the bracket s quantity will increase and the Current Trigger price will adjust based on the price of those fills e Canceling the primary order will also cancel the bracket exits associated with it as long as there are no fills against the primary e Partially filled primary orders will already have active bracket s on the filled shares or contracts Canceling the remaining unfilled portion of the primary order will not impact the brackets Brackets on Positions Note some important differences between brackets on positions versus brackets on orders e Starting Price When you establish a bracket on an order the starting price of the bracket is based on the average fill price However when you establish a bracket on a position e g from the Positions tab or a Positions tile you will need to specify a starting price and quantity For trailing stop
177. Routing Order Types Limit Limit Invisible Market Peg Primary Peg Description Matched against existing orders on the NASDAQ Single Book or routed to other exchanges if a better price is available These orders are never displayed on the book or in Market Depth Pegs the order price to the ask if buying or to the bid if selling meaning the order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price Orders may be adjusted a penny up or down to avoid locking the market EXAMPLE e XYZ is currently quoted at 20 bid x 20 05 ask e A Market Peg order to buy XYZ with a limit of 20 10 will be submitted at 20 05 e If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 10 e If the order is not executed it will not update beyond the limit price and will remain posted at 20 10 Pegs the order price to the bid if buying or the ask if selling OTC securities or the best exchange bid ask for Listed secur ities The order price will automatically adjust as the bid or ask moves until the order executes or the stock is priced beyond your limit price Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 148 Order Types Peg Diff Times In Force Day IOC Special Conditions Min Qty Description EXAMPLE e XYZ is currently quoting at 20 bid x 20 05 ask
178. Rules Support See Resistance AIBICIDIEIFIGIHIZTIITKILIMINIOTPIQIRISITIUIVI WX lt N Technical Analysis Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 414 The study of market action It is the representation usually in graphic form of the actual history of trading price changes volume of transactions etc in a cer tain stock or index and then deducing from that pictured history the present pos ition and possible future trend Tick The tick refers to each individual move from one trade to another in a stock An up tick means the price moved up from the last trade execution while a down tick means it moved down If there is no change from the last trade the tick is considered neutral Time and Sales Time and Sales reflect the trades occurring in the market by displaying each trade s price size number of shares venue and time that the trade was repor ted Time Conditions The following time limits may be applied to Stop Limit or Stop Limit orders Day Only Good Until Canceled Fill or Kill Immediate or Cancel Trailing Stop Trailing Stop is an order request set at a price level that is above for short pos itions or below for long positions the current price that adjusts as the price fluc tuates For a long position a trailing stop would be set below the current price and rise as the price advances Should the price decline and reach the
179. SIPC 1015 6153 287 Price Channels Price Lines Price Relative Simple Moving Average SMA Smoothed Moving Aver age OMA trade made so far If you choose Long from the Position drop down EP is the extreme high price for the trade if Short EP is the extreme low price for the trade The Channel consists for an upper trend line drawn on pivot highs a lower trend line drawn on pivot lows and a center line The Period variables will operate exactly like the traditional studies in terms of range and defaults The default period is 20 which has a cus tomizable range from 2 100 Formula Price UpperBand X Days High Price LowerBand X Days Low Centerline X Days High X Days Low 2 View one or all of the Open High Low and or Close for the symbol as individual price lines Compare the performance of one security to another with a ratio chart This makes it pos sible to determine if a stock is leading or lag ging its peers Enter the symbol in the Compare To field when setting up the study The average of the last 20 periods closing values including current day If current trad ing session hasn t closed yet the last sale price is used The default of 20 periods can be changed Formula The formula for an n period SMA is t X Price fy int x 1 MA ge An exponential moving average witha longer period used to determine the aver age as older prices are never remo
180. Sold Number of shares related to insider sells Research Metrics Research fundamentals on a symbol by opening the Research tool under Launch Tools or by clicking the Research button Research Q in the Symbol Hub Below is the data found in the Metrics tab of the Research tool VALUATION P E excl extraordinary items Price to Earnings ratio excluding extraordinary items Extraordinary items are infrequent and unusual in nature often one time charges P E Normalized Price to Earnings ratio normalized or smoothed over a period of time Forward P E Estimated P E Ratio using forecasted earnings Price Sales ttm Ratio comparing the price of a security to its revenue figures trailing 12 months Price Projected Sales Ratio comparing the price of a security to its projected revenue Price Book Value Ratio comparing the price of a security to its book value Price Tangible Book Value Ratio comparing the price of a security Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 357 VALUATION to the value of its tangible assets Price Cash Flow GROWTH METRICS EPS Growth yoy EPS Growth 5 yrs Projected EPS Growth 5 yrs Projected P E Growth 5 yrs Dividend Growth yoy Quarterly Sales Growth yoy Annual Sales Growth yoy Sales Growth 5 yrs FINANCIAL METRICS Revenue ttm Sales Share Share Price divided by Cash Flow per
181. StreetSmart Edge User Guide Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 1 Table of Contents Table of Contents ooo e cece ccc cece cecececececcecececceeceecereeeeeceeeaeees 2 Welcome to StreetSmart Edge 0 0000 aaao aoaaa cce cence oonan nann 7 New Features eee 8 FAQS e a e a e a a a a e Nene eee 10 Getting Started FAQ oore a a 10 Moving from StreetSmart Pro to StreetSmart Edge FAQ 2 2 22 2 13 System Requirements FAQS 22 2 2 22c 22 cseccs de eesce ads cece sce esnectlseeseeestevessenes 16 Troubleshooting FAQ 0 0 20 2 c cocci cece cece ccc ccceccececceeescecectesessesecsesesseses 18 Layouts amp Configuration ooo c ccc cececececececcececececeeeeeerecee 21 IE 0 een eg ese One A a a ee Ieee EE eee none nore ee Cee ere 2i Backup and Restore oboe rec echenetdb cece ceed pictues 0AL AALA a La anann 23 Meee aee oe ee eee ar ee a eee 25 Main Menu aoaaa aooaa ccc ccc ccc ccc ccccccccccccecceccecceccecceccecceccceceecceceeceeceeceeteess 28 SIO Dall Settings ice sige ee crease ees casey ara a e ao ea essen lekeakeweckueseces 32 Account Settings sisc252 2s cccccascessoedses eas Kee getecascagaess ass Gcgaseteaddsgadetae ees 34 Trading Settings aera eee eae ee e a ee eestor ee cee ee em 35 Tool Limits in Layouts au ccoraenscicceeiidewsdeveeuabhetdbaniiuleleavexnbeioanded ddd wevecanuebsole 36 Account Details 2 22 0 0 0 0 0 0 o coco eee ccc ccc ec eee cec cece c
182. StreetSmart Edge are like different views you can create to help organize your work space They display in a tabbed format with up to 8 layout tabs able to be open at one time For example rather than trying to fit all the research tools you use plus trading and account information on one screen you can create one Research layout and one Trading layout and flip between the two The possibilities for organizing your work area in StreetSmart Edge are extensive and designed to meet the needs of a variety of trading styles Creating a Basic Layout Use the layout tab currently open or create a new layout tab by clicking the to the right of the layout tabs You can also right click on a tab and select New Lay out Once you have the layout tab open that you want to work in you can add remove and configure the tab the way you want it to look Here are some tips for setting up the display e Full or Partial Screen Make StreetSmart Edge take up the full screen by clicking the maximize in the upper right corner of the window Click restore to return to a partial screen mode In this mode you can change the size of the window by dragging the borders of the window until it s the size you want e Add Remove Tools Once the window is the size you want add tools from the Launch Tools menu Remove tools by clicking the X in the upper right corner of the tool e Resize Tools Expand or contract the size of a tool by moving your mouse o
183. TC Good Til Canceled Instructs the broker to keep an order open until it is either executed or expires At Schwab GTC orders remain open for 60 calendar days unless filled or you request that it be canceled before that time Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 170 11 Check the AON All or None if you want your order to fill ONLY if the entire quantity is available Also for Buy Writes you may choose to Reinvest Dividends on the stock leg of the order 12 Click Review Order if you have not turned off order verification 13 If the order settings are correct click Place Order To edit the order click Edit Order To start over completely click Do Not Place Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the optio
184. Trend line but does not extend to infin ity With your mouse pointer on the spot where you want to start the trend line click and drag the other end of the line to the angle you want To adjust the line click on it so it becomes bold and grab one of the square anchors and drag it to a new position Add notes to your chart with this tool Click on the chart and drag the rectangle to the size you need e Right click and select Edit to enter your note e You can also adjust the line pattern weight and color as well as selecting a Fill color The Fill can be a gradient of two different colors or select the same color in both boxes to give ita solid background e To have no color in the background move the Opacity setting all the way to the left This trend line separates the Fibonacci Arcs into a separate view The three arcs which center on the last point of the trend line you draw help you identify where support and resistance may affect the price as a stock trends up or down You can choose to show the percentage labels by clicking Show Levels Lines are displayed by first drawing a trend line between two extreme points for example a trough and opposing peak A series of nine horizontal lines Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 296 Draw type Fibonacci fan Rectangle Oval Arrow Description are drawn intersecting the trend line at t
185. Web Browser StreetSmart Edge offers a built in web browser where you can quickly access Schwab com account management and research resources without leaving the software amp Open the Web Browser from the Launch Tools button The browser will also open if you choose a link from the Schwab com drop down in the Main Menu You may display up to 8 instances of the Web Browser tool across all open lay outs Schwab sites Click the Charles Schwab logo to open a menu of links to Schwab com same as the one in the Main Menu These will take you directly to the education account management research and more on Schwab com without having to log in Favorites Keep a list of other frequently used web sites which you can access and manage from the Favorites menu e Add Favorites Go to the site you want to add by entering the web address at the top of the Browser window and clicking Go Click the 4 icon to add the site to your Favorites Give the link a name and click Save In the Favorites menu each link has the following choices in an expanding menu e Open Favorites Click the Favorites menu where each saved favorite will have an expanding menu In the menu for the site you want to open choose whether to Open in Current Window or Open in new window Opening the site in a new window will open another Web Browser tool in your layout e Edit Favorites To change the name or web address of a link you ve saved to your Favorites
186. Wilder introduced the RSI he recommended using a 14 day RSI Since then the 9 day and 25 day RSIs have also gained popularity The fewer days used to calculate the RSI the more volatile the indicator One popular method of analyzing the RSI is to look for a divergence in which the security s price is making a new high but the RSI is failing to surpass its previous high This divergence may be interpreted as an impending reversal If the RSI then turns down and falls below its most recent trough it is said to have completed a fail ure swing The failure swing is considered a confirmation of an impending reversal Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 410 Resistance and Support Support is defined as an area on the price chart below the market where buying interest appears sufficiently strong to overcome selling pressure Resistance is the opposite of support and represents an area on the price chart above the market where selling pressure appears sufficiently strong to overcome buying pressure Generally support levels are suggested by previous lows while resistance levels are suggested by previous highs Support and resistance areas may be viewed as areas in price movements where buying and selling interest is equal The longer the time span that prices trade in these areas the more significant these areas may become Two other possible indications of significance includ
187. a break down of lots on positions e Export Positions with Lots Exports positions including lot details Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Position Columns and Settings The StreetSmart Edge Positions tab found in the Account Details tool is cus tomizable allowing you to choose which columns of data to display for each pos ition in your account as well as the order of the columns Access the Positions tab Settings window by right clicking in the Positions display and selecting Columns and Settings or access it from the Actions drop down menu See Column Descriptions for details about each available column Option Greek Pricing Models Greeks indicate how fast an option prices may behave given changes to pricing input models such as time underlying stock price volatility etc e Pricing Method Select from Black Scholes Barone Adesi Whaley or Cox Ross Rubinstein e Interest Rate Defaults to the 3 Month Treasury I rate Index rate IRX or you can define the rate as you wish Sorting Rows Sort rows by clicking the header of the column on which you w
188. above the exponential moving average uses a smoothing factor to give more weight to recent prices while still allowing all data in the 60 day window to influ ence the average While similar to the SMA above the exponential moving average uses a smoothing factor to give more weight to recent prices while still allowing all data in the 100 day window to influ ence the average While similar to the SMA above the exponential moving average uses a smoothing factor to give more weight to recent prices while still allowing all data in the 120 day window to influ ence the average Relative Strength Index indicates the degree of positive and negative movements by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 9 days using today s Cur rent Price for the 10th day divided by the sum of the average up closes and the average down closes for the same period This ratio is mul tiplied by 100 Relative Strength Index indicates the degree of positive and negative movements by the stock on a scale of 0 weakest to 100 strongest Determined by figuring the ratio of the average up closes for the last 10 days not including today if prior to close divided by the sum of the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 329 Technicals RSI 30 Day RSI from Close 30 Day RSI 50 Day RSI
189. accepted by Schwab during this Trading Session sub ject to account or security specific lim itations Your orders will be pro cessed through UBS Only limit orders are accepted subject to account or security spe cific limitations All order sizes are accepted round odd and mixed lots You can trade secur ities or options While odd and mixed lot orders can be accep ted their use may sig nificantly reduce your chance of finding a matching buy or sell The maximum order size is 25 000 shares Currently most NASDAQ and certain lis ted securities are avail able for trading during the Extended Hours Session at Schwab Unexecuted limit orders placed during the day session do not carry over to the Exten ded Hours Session Unexecuted extended hours orders are can celed at the end of the session and do not carry over to the next Extended Hours Trad ing via Direct Access on StreetSmart Edge Orders will be routed to your chosen des tination Limit orders and some market orders are accepted subject to account or security spe cific limitations Maximum order size lim itations vary by chan nel NASDAQ equities only Like orders placed dur ing the Standard Mar ket Session unexecuted shares are either auto canceled or Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 137 Standard Market Extended Hour
190. acking up and restoring your settings and layouts Back up your layout s and settings to either the Schwab server or to a local file Schwab Server Save up to 5 layouts to the Schwab Server When you click Save to Schwab Server a window displays showing you all your server saved layouts Assign your backup a name in the Layout Name field and click Save Delete saved layouts by clicking the X next to the layout you wish to delete Local File To save more than 5 versions of your lay outs and settings save them locally File names will default to include the date of the backup or you can give them unique names of your choosing If you use the same file name it will overwrite the previously saved version of the same name See more on backing up and restoring your settings and layouts Loads a saved backup either from the Schwab server or from a local file When you load a saved backup your current layouts and settings will be temporarily backed up so that you can revert to your previous set up if necessary See more on backing up and restoring your settings and layouts Use to revert back to the settings you were using before you loaded a saved layout See more on backing up and restoring your settings and layouts Logs you out and closes the software Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 30 SETTINGS Settings Application settings may be change
191. ailing stops o Click through event lookup for a visual green red summary of all the bullish and bearish Technical Events that are still active on the instrument of interest o Anticipated Events is designed to help traders identify and alert traders to possible technical events It provides trading alerts from over 40 different technical events and helps identify patterns that may be inthe process of forming via classic pat terns indicators and oscillators o If there are Anticipated Events identified for a symbol an anti cipated events link will display in a yellow box under the Tech nical Events section of the Summary tab within the Technical Insight tab in Recognia Click the anticipated events for a Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 347 detailed list of events including opportunity type price threshold and target price range if identified o Learn more about Technical Insight by visiting Recognia e Strategy Builder is an advanced stock screener that enables you to search for stocks that fit a broad range of parameters e Intraday Trader helps you find stocks with multiple technical signals that you select based on chart patterns and other technical criteria occur ring throughout the day A Trade button is also available within Recognia tabs This allows you to directly open a linked Trade tool from the Recognia tool For assistance with t
192. aily or 52 week highs and lows Breaking through a high or low may indicate a stock has moved through res istance or support levels possibly indicating a changing trend Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 333 You can customize the types of stocks to track in a High Low tab to display any combination of the following All NASDAQ stocks All NYSE stocks Indices Custom symbol list Any of your Watch Lists Current Positions See High Low Settings for more on customizing your High Low tabs You can also set up proximity alerts to notify you when a stock is trading neara high or low as well as setting volume and price boundaries to further tailor the data stream and reduce unwanted data TIP 52 week highs and lows are indicated by a shaded PESI or BEY back ground respectively NASDAQ and NYSE information are both updated during Pre Market Standard and After Hours sessions Using the High Low Tool Double click on a symbol to load the symbol into any tools linked to the High Low tool See more on the Tool Link Icon For fast moving feeds you may need to pause the feed to review the data or click on a symbol To pause the live feed click the Pause button Using the scroll bar to scroll down to older data will also pause the feed Data does not accumulate while the feed is paused To conserve space click the streamlined view icon which collapses the tab r
193. ain Filters oor ice he pet ide c rteneceodiwens wabenbaderietauniucsiveduebenscade 173 Option Chains Columns and Settings 0 20 20 o occ eee c cece ec ec eee ee ees 174 Options Chain Column Descriptions 0 20 00 0 2220 c cece cece cence cee ee ees 176 Option Chains Settings cccco cosas ccctc sce te oaaao aaao Daa DAAD LAA D L Lanan aa 178 Trade amp Probability Calculator 0 00000000000000 cece ccc naana cee ec cececceceees 179 Covered Calculator View 0 00000000000000000 0000000010000010 odaia 0122112011111 181 Theoretical View ccna secpesered ese salesaS Zodeyachdeudusalubtecsdtusateetceceudeeesceu 184 Non Standard Expiring Options 2 20 00 00 2 o oo ccc cece cece ececcececceceees 186 Adjusted Options cacao so ee cst oie chsh d cc ete dhl dsk odes LLALLA aL annann 187 Tia 0 pene 188 Option Strategies 22 0 2 ec e ccc cc cc cece ec cecccccecececenseteetsenseeeeeeeeses 190 Conditional Orders acces cect oa eee dae aaa AADAL DALDAL DDALL L naana 244 Conditional Orders a aaaaaaaaaaa aoaaa aoaaa aoaaa oona aoaaa ADDAA D DDALL LD ALD nan 244 Conditional Order Guidelines 0 0 2 c ccc cece cece e cece cece cece ecececeeeeee 246 Placing Conditional Orders 02 0 0 0 ce cece ec ecececcccccececececececcecececececeneacs 248 Alert amp Conditional Order Conditions 0 0 0 0 0 0 c cece cece cece ec ec ee ee 250 Alert amp Conditional Order Notifications 0 0 0 0 0 0 c
194. al regulatory requirement is to disallow a taxpayer from deducting a loss on his tax return when his financial position remains relatively the same after the loss Wash sale period 30 days before lt DAY YOU SELL gt 30 days after As of January ist of 2011 the IRS changed the way that brokerage firms must report cost basis for each position and account for any wash sales Under the new IRS rules we have to add the disallowed loss on the sale to the cost of the new position Once the position is closed and 31 days have passed before open ing it again the loss can be taken Schwab identifies wash sales during an overnight process and during the next trading session StreetSmart Edge displays a W indicator in Lot Level Details for a position in the Positions tab gt Learn more about Wash Sales by reading the article Wash Sales 101 Important Wash Sale Notes e The cost on my position seems wrong Your actual transaction cost did not increase only the taxable basis Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 96 e Wash sales do cross over years so if you close a position in December 2011 and re establish the position within 30 days even into January 2012 the loss would be disallowed for 2011 Wash Sale Example 1 On 9 30 you buy 100 shares of ABCD at 15 00 You close out your position in ABCD at 12 50 on 11 15 and take a 2 50 per share loss Then you buy
195. alculated for calls as underlying price strike price or for puts as strike price underlying price The value of the option that is not attributed to the intrinsic value calculated as Midpoint Intrinsic Value Implied Volatility based on the option midpoint price and underlying price as calculated with selected option pricing model IV is a theoretical value in designed to rep resent the forecasted volatility of the security or index as determined by the prices of multiple call and put options using the Black Scholes pri cing model Other variables usually include security price strike price risk free rate of return and days to expiration If all other variables are equal the security with the highest volatility will generally have the highest option prices Implied Volatility based on the option ask price and underlying price as calculated with selected option pricing model Implied Volatility based on the option bid price and underlying price as calculated with selected option pricing model Estimate of the change in option price per one Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 177 Greeks point change in the underlying price based on the selected option pricing model Gamma Measures the change in delta for a change inthe underlying security price Theta Estimate of the change in option price per one day passing based on selected option pric
196. alculator The Trade amp Probability Calculator shows a visual representation of the risk re ward of an options strategy to help you quickly assess option trade risk based on the price of the underlying on certain dates using the Black Scholes option pri cing model It also plots the probability of the underlying symbol price at any point in time up to the expiration date amp The Trade amp Probability Calculator tab is next to the Market Depth and Option Chains tabs in the All in One trade tool SOEX EL S amp P Ind 100 St gt Bid 699 12 Ask Vol x Vertical Put Conditional Orders E Prob Expiring Below 677 01 15 87 Between 677 01 and 722 05 68 27 Above 722 05 15 86 E Probability 04 21 2013 FE F P amp L 11 57 03 22 2013 FS F P amp L 40 41 04 06 2013 5 I P amp L 200 00 04 21 2013 Implied Volatility Div Yield Interest Rate Lower target Upper target 722 05 Profit and Loss Prediction Three lines overlay the graph e Predicted Profit or Loss based on Today s date e Predicted Profit or Loss based on halfway to the expiration date e Predicted Profit or Loss based on expiration date Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 179 These dates along with the expiration date that used for the underlying prob ability chart may be changed by clicking the calendar icon in the fields above the chart
197. all 1 07 e Current Bid Price XYZ 08 16 2014 36 00 Call 0 26 e John s Trade e Sell to Open 1 XYZ 08 16 2014 32 00 Put 0 11 e Buy to Open 1 XYZ 08 16 2014 34 00 Put 0 60 e Buy to Open 1 XYZ 08 16 2014 34 00 Call 1 07 e Sell to Open 1 XYZ 08 16 2014 36 00 Call 0 26 e Net Debit 0 11 0 60 1 07 0 26 1 30 The Profit Loss profile for this trade is as follows Profit Short Long Short strike price strike price strike price 70 0 130 34 00 36 00 Los Lower Stock price gt Higher Note Chart depicts strategy at expiration e Maximum Gain 34 00 32 00 1 30 0 70 e Maximum Loss 1 30 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 227 e Lower Break Even Middle Strike Price Net Debit 34 00 1 30 32 70 e Upper Break Even Middle Strike Price Net Debit 34 00 1 30 35 30 Note Commissions have been excluded to simplify the calculations Short options can be assigned at any time and therefore option sellers assume the risk of assignment at any point up until and including expiration Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account
198. alls this strategy has similarities with covered call writing buy writes For use when investor anticipates e Slowly rising or flat market e Price of the underlying security to be slightly below the strike at short option s expiration Financial Characteristics Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 243 e Maximum Loss Net Premium Paid In addition client may have to exit the long early via sale or exercise to cover an assignment on the short losing the opportunity for further gains e Maximum Gain Unlimited once the short option expires If the short call is assigned on or before expiration the client will have a short position whose losses should the stock price rise will outweigh any gains made on the long option e Ideally the cost basis of the long call is eventually reduced to zero and the investor begins to get paid to hold his long position Objectives e Generate income from the short positions e Benefit from the greater rate of time decay of short term options vs longer term options e Potentially realize any gains from a movement in the underlying security after the near term option expires EXAMPLE Calendar Spread An investor feels that stock XYZ which is trading at 60 will trade at this price for at least the next 3 weeks and then might rally The investor could sell the June 65 Calls trading at 2 10 and buy the July 65 Calls trad
199. an 20 00 Held by Institutions is greater than 40 00 Search Relative Strength List for Top 30 stocks whose Current Price is greater than 20 00 Avg Vol 6 Month is greater than 250 000 15 Day SMA is greater than 50 Day SMA 50 Day SMA is greater than 200 Day SMA D is less than 35 00 D Slow is less than 35 00 Search Relative Strength List for Bottom 30 stocks whose Current Price is greater than 20 00 Avg Vol 6 Month is greater than 250 000 15 Day SMA is less than 50 Day SMA 50 Day SMA is less than 200 Day SMA D is greater than 75 00 D Slow is greater than 75 00 Search Volume Over 6 Month Avg List for Top 30 stocks whose e Current Price is greater than 10 00 e Avg Vol 6 Month is greater than Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 312 Screen Name Pre Defined Criteria 250 000 e 50 Day SMA is greater than 120 Day SMA e 120 Day SMA is greater than 200 Day SMA e 10 Day RSI is greater than 30 Day RSI e 20 Day Momentum is greater than 40 Day Momentum e Rate of Change is greater than 0 00 e D is less than 40 00 e D Slow is less than 40 00 Schwab does not recommend the use of technical analysis as a sole means of investment research Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options s
200. an overlay without deleting it e Right click on the overlay symbol at the top of the chart and select Hide e Or you can click on the chart key for the overlay at the top of the chart window Click again to show the overlay again Remove an overlay e Right click either on the overlay line or the overlay symbol at the top of the chart and select Remove You can also mouse over the overlay symbol and click the X next to it Extra Extend your chart into the future by adding extra periods Extend Periods ing your chart allow you to project trendlines into the future add 0 500 notes and reminders to future points in the chart and more Use the arrows to increase or decrease the value or type a value in the field Draw Use the Draw panel to add trend support and resistance lines text annotations and other shapes to your chart to facilitate your tech nical analysis For a description of each of the objects you can draw on your chart see Chart Lines and Objects Draw a line or object 1 Inthe Draw panel click the type of item you wish to draw The options available line style width and color etc will display Istudy is calculated off the close price for each period Istudy is calculated off the open price for each period Istudy is calculated off the high price for each period Istudy is calculated off the low price for each period Istudy calculates the average as High Low Close 3 Istudy calculates the
201. ance Traders who fit this profile will not be affected by the special requirements that may result from Cash Account trading activ ity Traders who occasionally trade non mar ginable securities in the Cash Account should continue reading Settled funds are e incoming cash such as a deposit or wire e available Margin Loan Value e settled sale proceeds of fully paid for securities Settled funds may be used for purchases of securities If a security is purchased using settled funds there are no requirements sur rounding the timeframe of when the newly purchased securities can be sold Click here for more information on unsettled funds and trade violations However if unsettled funds are used to pur chase securities and the customer sells the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 73 Available Values Available to withdraw Descriptions securities prior to making full payment these newly purchased securities may be subject to special requirements Securities purchased using unsettled funds should not be sold prior to the settlement of the funds used to purchase these securities generally 3 business days after the sale of the secur ity which generated the funds If these securities are sold prior to set tlement of the financing sale then additional funds will be required to be deposited in the account to cover the cost of the newly pu
202. and financial characteristics of Custom orders can vary greatly depending on the specifics of the order Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 195 Suigh High Strike Price in two option strategy Si ow Low Strike Price in two option strategy Collar Max Gain Loss assumes the collar is put on in conjunction with a long stock position This column describes the effect of time decay on the respective strategy holder s position The discussion of Calendar Spreads that follows is for the debit spread only Max Gain for Debit Spread is unlimited only after the expiration of the short option Max Loss for Credit Spread is unlimited when the long calls expire prior to the short calls in which case the position would not qualify as a spread The gain or loss with time for calendar spreads applies only during the period when both options in the spread have not yet expired or been assigned Once the near term option has expired or been assigned the situation will reverse Gain will change to Loss and vice versa Although not common calendar spreads may be neutral For Ratio Spreads since you are short 2 contracts vs 1 time decay will gen erally be in your favor but technically it depends on if you establish this position for a credit or debit For Back Spreads time will generally be working against you but again this depends on whether you establ
203. and selecting Font 2 In the Font window you can adjust the size and font used in the Market Depth display as well as make the text bold and or italicized by clicking the B or J buttons respectively TIP Check Apply to All Market Depth instances if you want the font settings to apply to all Market Depth displays Market Depth Settings Market Depth Behavior Sort quotes by Size or Time Display Scrollbars Display Aggreg ated Quotes Display quote volume in 100 s Data Sources NBBO National Best Bid and Offer Sort quotes by Size to see the largest quotes first at each price level If multiple quotes are the same size the older quotes will get higher priority Sort quotes by Time to display quotes from oldest to newest regardless of size Displays scrollbars in each column enabling you to see the full depth of the bid or ask or to see time amp sales data from further back Displays an aggregate size at each price levels above the bid and ask columns e Aggregate quotes show the number of shares being quoted at each price level The size is the sum of all of the individual market maker ECN quotes at that level e Increase or decrease the number of aggregate levels shown by clicking and dragging the divider bar between the aggregate and Market Depth areas If unchecked the full volume for a quote will display If checked the quote will display without the last two zeros to save screen
204. angible Book Value Share FINANCIAL STRENGTH Current Ratio Quick Ratio Long Term Debt Equity Total Debt Equity Payout Ratio ary items Earnings per Share normalized or smoothed over a period of time Calculated as cash flow less preferred dividends divided by the number of com mon shares outstanding Free cash flow divided by the number of common shares outstanding Value of the company per share after all debts are paid Total tangible assets per number of out standing shares Assets divided by liabilities Current ratio minus inventory as inventory is considered a less liquid asset Long term interest bearing debt divided by stockholder equity Total liabilities divided by stockholder equity Dividends per share divided by earnings per share shows how much of the com panies earnings are going toward dividends Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 359 MANAGEMENT EFFECTIVENESS Return on Assets Net income divided by total assets Return on Equity Indicates profit generated from share holder investments by dividing net income by shareholder equity Return on Investment Net return on an investment gain from investment cost of investment divided by cost of investment Sales Employee Sales divided by number of employees MARGINS Gross Margin Percent of revenue retained after taking out costs of producin
205. ant to sort An arrow next to the column name indicates the sort direction ascending or Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 80 descending e If Auto Sort in Real Time is checked in Columns and Settings changes to data in the sort column will affect the current sort order in real time e For example if you have your Positions sorted alphabetically by Symbol if you add positions in your account the new positions will be inserted into the Positions display in the correct alphabetical order Sorting by multiple rows can be accomplished by holding down the Shift Key while you left click on the headers of the columns which you want to sort e Forexample if sorting by quantity and the account has several positions which have a 100 share quantity all of the 100 s would be grouped together and within that group the rows would be arranged by the next sorting selection If there is no second selection the rows within the group would be arranged by their symbols from least to greatest alphabetically Customizing Columns There are several ways to rearrange the columns displayed in your Positions tab e You can click the column headers and drag them to another spot in the Pos itions tab e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the Pos
206. art Edge users or save to an external resource like a CD or USB drive or external hard drive A If you only save a template to a file instead of using the Save as Tem plate button it will not display the template in your Templates drop down menu To save as a file AND still see it in your software do both actions But remember that they are saved in two separate places so changes to the tem plate must also be saved to both places if you want to keep them in sync To save as a file once your template is complete click the disk icon Jy at the top of the Conditional Orders tab You will be able to select a location to save the file on your computer name the template file and click Save Open Conditional Order Template from File If you have saved a conditional order template to file you can open it by clicking Templates drop down menu and choosing Open Template from File Find the file on your computer click it and select Open Renaming a Template 1 Click the Templates drop down and select Manage Templates 2 Click the template you want to rename and then click the pencil icon Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 257 3 The name of the template will become an editable field Change the name and press Enter to set it Deleting a Template 1 Click the Templates drop down and select Manage Templates 2 Click the template you want to delete and then click
207. as identified XYZ as a stock she believes will make a sharp move either higher or lower over the next month and a half Therefore she decides a Long Iron Condor is an appro priate strategy given her outlook and the limited risk that the strategy offers XYZ is currently trading at 27 98 and Michelle decides that the 27 50 strike Put and 30 00 strike Call are appropriate middle strikes In addition she feels that the 32 50 strike Call and 25 00 strike Put are acceptable strikes as she believes the underlying price will either be below 25 00 or above 32 50 at expiration Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 229 Lastly Michelle selects the September expiration it is 50 days away which is in line with her timing forecast Strikes Symbol LastTrade Change Bid Ask Delta Theta IV y Calls Sep 20 2014 50 days gt 22 50 09 20 2014 22 50 C 5 30 5 70 0 8704 0 0116 53 7416 gt 25 00 09 20 2014 25 00 C 4 70 3 30 3 50 0 7464 0 0152 46 4854 gt 27 50 09 20 2014 27 50 C 1 85 1 70 1 85 0 5414 0 0172 42 2962 gt 30 00 09 20 2014 30 00 C 0 85 1 55 0 75 0 85 0 3186 0 0149 40 9703 gt 32 50 09 20 2014 32 50 C 0 40 0 50 0 30 0 45 0 1715 0 0112 42 8733 gt 35 00 09 20 2014 35 00 C 0 25 0 30 0 10 0 25 0 0885 0 0073 44 7178 V Puts Sep 20 2014 50 days gt 22 50 09 20 2014 22 50 P 0 20 0 35 0 1077 0 0091 48 1020 gt 25 00 09 20 2014 25 00 P 0 70 0 45 0 65 0 80 0 244
208. as it is used in the calculations It takes the IV Chg amount and adds or subtracts from the current IV value Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 185 document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Non Standard Expiring Options What are non standard expiring options Standard expiring options at Schwab are classified as options that expire on the Saturday following the third Friday of the month and have a lifespan of months or years These have been the norm in the industry for many years However options on certain stocks ETFs ETNs and indices are now available with short term expirations weekly expiring options and calendar quarter end expirations quarterly expiring options These are being referred to as Non Standard Expiring Options What are the types of non standard expiring options Schwab currently has two broad categories of non standard expiring options available for trading e Weekly expiring options e Quarterly expiring options Weekly expiring options Weekly expiring options expire
209. as one digit For Example a March month code H 2015 year code 5 contract of AB would be entered as ABH5 O a oO Monthly Futures Symbol List January February March April May June July August September October November December NX lt CO2Z3BACITOAT StreetSmart Futures List E Mini 5 Dow Industrials E Mini NASDAQ 100 E Mini NASDAQ Composite E Mini S amp P 500 E Mini S amp P Midap 400 E Mini Euro FX E Mini Japanese Yen Nasdaq 100 S amp P 500 Value S amp P 500 Growth S amp P 500 Index S amp P MidCap 400 S amp P SmallCap 600 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 424 Feeder Cattle Class IV Milk Random Length Lumber S amp P GSCI Commodity Index Australian Dollar Brazilian Real British Pound Canadian Dollar Eurodollar Euroyen Euro FX Japanese Yen Mexican Peso New Zealand Dollar Nikkei 225 Dollar Nikkei 225 Yen Russian Ruble South African Rand Swiss Franc 1 Month Libor Futures trading carries a high level of risk and is not suitable for all investors Cer tain requirements must be met to trade futures Please read the Risk Disclosure Statement for Futures and Options before considering any futures transactions Trader s Marketplace The Marketplace located next to the Launch Tools button in the upper right corner of the StreetSmart Edge window offers you a way to access discounted third part
210. as the sole means of investment research Market Edge and Second Opinion are registered trademarks of Computrade Sys tems Inc which is not affiliated with Charles Schwab amp Co Inc CNBC TV The CNBC TV tool in StreetSmart Edge offers 24 hour a day 5 day a week commercial free live stream of the CNBC broadcast right on your desktop The U S Europe and Asia feeds are each available Choose between them by click ing the appropriate button at the top of the CNBC tool Video On Demand The Videos tab also lets you watch clips from CNBC on demand Click Search to watch the Top Videos or change the Category to search by Keyword Symbol etc You can also specify a time frame to search and sort the results by Length Time or Title Audio and video controls are at the bottom of the tool Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 349 e Buttons to Play gD and Stop g the stream are on the left e Control the Volume on the right by hovering over the volume icon and using the volume slider that appears to adjust the volume up and down You can also click on the volume icon to quickly mute or unmute the audio e To make the video full screen click the Full Screen icon E Press the Esc key on your keyboard or click the Normal Screen icon to reduce the tool to its original size Layout Tip If you want to watch CNBC on a separate monitor drag the CNBC tool from your
211. ased volume then the indicator will be positive and display above the zero line this indicates that the market may be strong Conversely if prices consistently close in the lower half of their daily high low range on increased volume the indicator will be negative and display below the zero line this indicates that the market may be weak It should be noted that because the change from close to close is not considered in the calculation a security can close lower and still exhibit signs of accu mulation or close higher and still exhibit signs of distribution Moving Averages Moving averages are one of the more versatile and widely used of all technical indicators A moving average shows the average value of a security s price over a specified period of time Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 404 To get the average to move a new item of price data is added while at the same time the oldest item is removed By using an average of prices moving averages are able to smooth a data series and make it easier to identify any underlying trend Essentially a trend following indicator the moving average works best in mar kets that are trending as opposed to markets in trading ranges They are used to identify and confirm trends as well as identify support and resistance areas It s also important to note that shorter term averages are typically more sens itive to indi
212. at works best for you 3 Specify the Action Type Enter Order Pop up Execution Dialogue Load Quantity or Load order parameters in Trade tool Action Buy Sell Short Close Cancel etc Venue Order routing venue such as Smart Quantity Number of shares Type Choose Market or Limit Some Venues may offer additional order types Limit Price Choose from the Inside Bid or Inside Ask Delta Specifies how much above or below the Inside Bid or Ask to price the order Peg Diff Available if order type is Market Peg or Primary Peg Max Floor Can be used with the ARCA or NSDQ venues if available Time in Force Choose from Day DAY Good Til Canceled GTC Fill or Kill FOK Some Venues may offer additional TIFs Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 123 e Special Conditions Any special conditions such as Do Not Reduce DNR All or None AON etc will display as available depending on the Venue you have selected 4 The hot keys you create display at the top of the screen and you can Enable or disable them as necessary by checking unchecking the box next to the hot key description 5 Click Save when you are finished creating hot keys and wish to close the Settings window Edit a Hot Key Click the row for the hot key you want to edit The hot key you are editing will be highlighted yellow and the fields will populate with the settings for that ho
213. ations are in the range of 20 to 0 You can change the peri ods used in the calculation from the default of 14 For calculation purposes R is simply K 100 Directional Mov Index The Directional Movement study indicates the strength of a trend independent of whether that trend is up or down The study combines several components DI meas ures upward moves DI measures down ward moves DX combines DI and DI and ADX is a smoothed version of DX In the Study settings right click on the study and choose Edit you can remove or add any of the four lines that make up the DMI Average DM ADX 1 1 Average Directional Movement is an oscillator that fluctuates between 0 and 100 readings above 60 are relatively rare Its values are interrelated with DI DI and DX Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 284 DM DI Positive DM DI Negative Directional Movement Dx 3 Formulas Directional Movement is a trend following system that consists of DI DI DX and ADX These values are interrelated as shown below ADX F DX 1 F ADX 21 Di DI DI if the denom inator gt 0 0 otherwise DX 100 APDM Di 100 and AMDM Di 100 _ AR where 4A F R 01 F AR where R max High Low High Clase _ Close Low APDM F PDM 1 F APDM AMDM F MDM 1 F
214. ave been excluded to simplify the calculations Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account Qualified Spreads With a Qualified Spread the purchased option is required to expire on the same or later expiration date than the option sold When there is more than one pos sible way to pair available options in your Account Schwab has the discretion to determine the spread pairings Schwab may pair options in a manner that does not produce the lowest possible margin requirements Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 218 Note For butterfly and condor spreads each option leg must have the same expiration date to qualify as those types of spreads Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Condor A condor strategy combines two call spreads or two put spreads it involves four call legs or four put legs all with the same expiration date gen
215. ay Premium Received Premium Paid e Maximum Gain The difference between the strike prices less the cost of establishing the spread Objective e Speculative gain The maximum loss on a spread position remains limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the long put the maximum loss is no longer limited EXAMPLE Bear Vertical Put Spread Currently XYZ trades at 25 share The investor believes the stock will fall and wants to participate in the downward movement but does not want to simply buy puts because of the expense risk involved Instead the investor employs a spread strategy buying an in the money put strike 30 for 6 00 contract and selling an out of the money put strike 20 for 1 00 contract Using this strategy the maximum loss is the difference between the premiums paid and the premium received 6 1 5 or 500 The maximum profit an investor can receive is the difference between the strike prices of the options used to create the position less the cost to establish the spread 30 20 5 5 or 500 In this example the strategy breaks even at 25 00 share The breakeven price of 25 is calculated by subtracting the net debit of the spread from the strike price of the long option Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 242 Bear Debit Spread Gain Loss at Expiration
216. ayed To view your trade lot details for these positions please use Schwab com e Edit the Trade Lot columns you wish to display by right clicking on the Lot Details for a position and selecting Columns amp Settings Lot Details wash sale adjusted data where applicable Open Date Lot purchase date Quantity Quantity of each individual lot Cost Share Cost per share or contract for the lot if available Cost Total Cost basis for the lot if available Position Dollar Value Current market value for the lot This is the number of shares contracts multiplied by the current price P amp L Unrealized Market value less cost basis if available Hold Period Indicates whether you ve held the position for more or less than 365 days Long term means you ve held the position more than 365 days one year and is helpful in under standing the tax impact of closing the pos ition Source Indicates the source of the cost basis data whether it s from a trade advisor third party etc Original Transaction Information non wash sale adjusted Trans Date Reflects date of the original opening trans action that has not been adjusted by wash sale processing Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 93 Original Transaction Information non wash sale adjusted Trans Cost Total Reflects cost of an entire lot inclusive of any fees commissions This value is adjus
217. ayed portion of the order will have time priority EXAMPLE You enter a bid with 5 000 as the total quantity but 1 000 as the Max Floor value Your order will display as 1 000 shares but if yours is the only bid when an offer arrives for 10 000 shares at your price your entire 5 000 shares will execute However if 3 other bids for 3 000 shares each were behind you at the same price only your displayed 1 000 would execute along with 9 000 shares from the other three bids The information provided on this page is subject to change at any time To get the most current information please go to the NASDAQ web site Brackets Brackets Overview Brackets are profit or loss exits you can attach to your stock or option orders when you place a trade This can help you integrate your risk management strategy directly into the creation of an equity or option order Or if you choose to add brackets after an order is filled you can still maintain your risk management strategy by adding brackets to positions Using brackets you can predefine profit and loss targets for trades so that if those targets are met the software will automatically send an order to exit the position They consist of up to three contingent bracket orders which if triggered will close out the position opened by the primary order Brackets can provide auto mated risk protection for your open positions regardless of whether you are logged on to the software amp To
218. back into the position 100 shares at 13 00 on 11 30 At this point the sale on 11 15 is a wash sale and you would not be able to deduct the loss on your taxes until you sell the new position and then stay out of the position for at least 30 days However the 2 50 loss is added to the cost basis of the new position making your new cost basis 15 50 Wash Sale Example 2 You own 100 shares of XYZ at 15 00 Later on you buy 100 more shares at 12 00 then 17 days later you sell 100 shares at 13 00 If your cost basis accounting method is set to FIFO first in first out the sale would result in a loss and the proximity of the 12 purchase to the sell date would make this a wash sale The loss would be added to the cost basis of the second position showing a 14 00 cost basis 12 2 lt gt For more information on Wash Sales log on to Schwab com and go to Guid ance gt Taxes Then click Cost Basis Reporting gt FAQs and under the Spe cific Situations tab wash sales are addressed in more detail The information and content provided here is general in nature and is for inform ational purposes only It is not intended and should not be construed as a recommendation as legal tax or investment advice or as a legal opinion You should contact your tax advisor to help answer questions about your specific situ ation or needs prior to taking any action based upon this information Understanding P amp L Calculations Foll
219. ber SIPC 1015 6153 415 with a symmetrical triangle but the lows are occurring at the same price level due to support The odds favor a downside breakout from a descending triangle Prices often breakout rapidly from a triangle and the breakout can be confirmed when accompanied by an increase in volume AIBICIDIEIFIGIHIZTIJTKILIMINIOTPIQIRISITIUIV WX lt N Volatility Volatility is a measurement of change in price over a given period It is usually expressed as a percentage and computed as the annualized standard deviation of the percentage change in daily price Volume Volume is the number of shares traded in a security over a period of time Ona chart volume is usually represented as a histogram vertical bars below the price chart Warrants A type of security usually issued together with a bond or preferred stock that allows the holder to buy a proportionate amount of common stock at a fixed price usually above the market price at the time of issuance for a period of years or to perpetuity Warrants are transferable and trade on the major exchanges They are also known as Subscription Warrants Whipsaw A whipsaw occurs when a buy or sell signal is reversed in a short time Volatile markets and sensitive indicators can cause whipsaws For example a whipsaw would occur if a position trader initiates a long position on a bullish MACD cros sover and has to close it the next day because of a bearish moving average
220. ble Limit Orders The order is posted to the ARCA book ARCA posts the best bid and offer in their book to Market Depth MMID ARCA NOTE Your price may not cross or lock the market Market Market Peg These are matched with the ARCA book if there is volume at the inside Any residual will not be routed to the next price level until all quotes at the current best bid or offer are exhausted e Criteria for routing orders fill history time and size shown e Market orders are accepted but not executable before 9 30 a m or after 3 59 p m ET Pegs the order price to the ask if buying or to the bid if selling meaning the order price will automatically adjust Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 145 Order Types Primary Peg Peg Diff Description as the bid or ask moves until the order executes or the stock trades beyond your limit price Orders may be adjusted a penny up or down to avoid locking the mar ket EXAMPLE e XYZ is currently quoted at 20 bid x 20 05 ask e A Market Peg order to buy XYZ with a limit of 20 10 will be submitted at 20 05 e If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 10 e If the order is not executed it will not update bey ond the limit price and will remain posted at 20 10 Pegs the order price to the bid if buying or the ask if selling OTC securities or the best
221. but you can change to anything from 1 to 120 minutes See more on backing up and restoring your set tings and layouts Customize the amount of time that you wish to remain online before the software logs you off due to inactivity The default setting is 1 hour but you can change to between 1 and 8 hours Save layout interval Inactivity logout Refresh Rate Controls the speed of the data to your display If Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 32 General Settings New Message beha vior Header Symbol Fields Symbol Auto Com plete you have a slower processor it may be helpful to reduce this rate Move the pointer between Slow and Fast to control how many times per second your window refreshes Slowest is every 1 second Decide what you want the software to do when you get a new message e Show a system tray notification Displays the message or sub ject of the message for 5 seconds in the lower right corner of your primary monitor Double click the message in the notification to open the Messages tool Bring the Message tool s to the front Makes the Messages tool the active window in your StreetSmart Edge display e Do both of the above Enter the symbols you wish to display a quote for in the header of the StreetSmart Edge window Displays the trade price change from close and change from close Useful for keeping an eye on key s
222. buy with a displayed price of 50 and a dis cretionary price of 50 25 is presented as Price 50 Discretion 0 25 Max Floor Specifies the reserve size for the order Must be a round lot equal to or less than the order quantity Reserve size has no time priority in Market Depth Only the displayed portion of the order will have time priority EXAMPLE You enter a bid with 5 000 as the total quantity but 1 000 as the Max Floor value Your order will display as 1 000 shares but if yours is the only bid when an offer arrives for 10 000 shares at your price your entire 5 000 shares will execute However if 3 other bids for 3 000 shares each were behind you at the same price only your displayed 1 000 would execute along with 9 000 shares from the other three bids The information provided on this page is subject to change at any time Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 147 NSDQ General Information e NSDQ does NOT accept Good Til Canceled orders and any open orders will be canceled when trading hours end at 8 00 p m ET e Day order available if ECN NSDQ Auto Cancel time is set to 0 e Default cancellation time 180 seconds e Trading Hours 7 00 a m to 8 00 p m ET e To obtain the full depth of book for NASDAQ Single Book you will need to upgrade to NASDAQ Level II data service by going to the main menu and clicking Schwab com gt Add Level II NSDQ Order
223. cannot use Alert templates when setting up Conditional Orders and vice versa Using a Conditional Order Template When creating a conditional order select the built in or saved template you wish to use from the Templates drop down at the top of the Trade tool or Symbol Hub and click Load This will populate several fields in the Conditions and Order panels and then you can fill in the rest and activate the conditional order Creating a Conditional Order Template To create a conditional order template you can either create it from scratch or use one of the built in templates as a starting point Note that you cannot use Alert templates when setting up Conditional Orders and vice versa From scratch 1 Click the Conditional Orders tab in the Trade tool or Symbol Hub Click or create a Conditional Orders tab if using the All in One tool 2 Fill in the fields of the Conditions and Order panels with the values you want to automatically populate when you load the template 3 In your template leave one or more fields blank that will likely change each time you use the conditional order like Symbol or Limit Price To leave a field blank select lt template gt from the bottom of the drop down 4 Click Save as Template You may save up to 20 conditional order tem plates if you need to save more see Saving a Template to File below 5 Next time you create a conditional order your new template will display in the Templates drop down
224. capability enables you to get a view of a symbol s activity where time is not a factor Each tick is simply a certain number of executions which you specify in the number field Studies are not available on Tick charts Style Candlestick Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 268 e You can choose between solid AL or hollow ini can dlesticks Each candle represents one time interval chosen in the Type setting above e A green candlestick indicates that the closing price for the interval was higher than the opening price thus a positive movement for the interval The top of the candle is the close price while the bottom is the open price e A red candlestick indicates a downward movement in the price for the interval and the closing price is indicated by the bottom of the candle while the opening price is indicated by the top of the candle e The thin line or wick shows the high and low for the interval e On Bar charts 14 the left rung indicates the opening price of the stock and the right rung indicates the closing last price of the stock for the day or interval e The top and bottom of the bar represent the high and low for that day or interval e Green indicates the security s closing price for the interval was higher than the opening price e Red indicates the security s closing price for the interval was less than or equal to the opening price Line e
225. cates whether the order is still eligible to be changed Click View link in column to see the Cost Basis Method being used for each individual closing non option order Order level cost basis method can be viewed in a popup window from StreetSmart Edge in this column but you can only change the cost basis method for an individual order from the Order Status tab of Schwab com For more see Cost Basis Method Indicates yes no whether the Dividend Reinvestment has been enabled for the position If a symbol in the Order Status tab has a note associated with it in the Notes tool the Notes icon will display Click the icon to see the note s Displays the unique order reference number Shows the price at which you want the order filled Shows the number of shares or contracts to be traded Displays quantity and price information for your order s fills If there are multiple fills at different prices this column displays the average price Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 45 Order Status Route Security Type Submit Date Time Timing Trade Type Trigger current Quote Data Ask Bid Last Trade Underlying Last with the number of shares Shows the venue used to route the order Displays the type of security such as an equity or option Shows the date and time the order was sub mitted Displa
226. ce is based on the Starting Price you selected above Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 155 5 Click Review Order and then if the order is satisfactory click Place Order The brackets will then display in the Order Status tab where you can view edit or delete them as necessary Changing a Bracket Changing a bracket prior to it triggering does not affect the primary order 1 In the Order Status tab find primary order or for a bracket on a position find the bracket and expand it by clicking the arrow in the first column so the contingent orders associated with the primary order display below it Right click the Contingent order you wish to change and select Edit Bracket Make your edits to the brackets and click OK If your primary order has already received fills you will see the current trig ger price adjust based on the change in the bracket s value Removing a Bracket In the Order Status tab right click on the bracket you wish to remove and select Remove exit type If you wish to remove all bracket orders at once select Edit Bracket and uncheck the Exit checkboxes Notes on Changing or Canceling Primary Orders e Changing a primary order Generally a primary order can be changed without impacting the brackets Changes to the limit price will impact the fill prices and those will be taken into account as fills are received and the n
227. cecececeecececeeeess 138 Partial Fills s zsa See ee Pee ee OER Oe CER I 140 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 3 Close All ee ener ne ee aeea 140 Trailing StopS St iene cele se ae Saat degen adele gasedlseshusedesieas dee naan an 141 Symbol Formats ook aces oo oaaao oaaao haao dando eseuccnesddeedeadavedsaveseuseddsdsaun 141 Pattern Day Trading 2 0 0 0 cco cece ccc cccc ahaa naaa DDALL LLL DLL aa naaa 142 Direct Access Order Routing 0 0 00 20 2 coco ccc cece een aaa LaLa aan anann aan 143 BU incre na se nee des ee ede eA a ste he atte cee esse 150 Brackets Overview eccccccccccccecececececcccececececececcececececececcecececececs 150 Managing Bracket Orders aaao aoaaa c cocci ccc cc eccececcececcececcececceeesees 153 Bracket Examples oore eea a iiaea adei or 157 DEIONS eee e ote part e e e a So hc e A te beet ee 158 Options Overview 20 oo occ aaa oao naaa cenccnceeccececceeceesecseeseteeseesseees 158 Allin One Trade Tool 22 2 c2cc 22 2cccccccce ce esadaccticeccdecdcdceiecddabeiidesseseccecdecess 161 Options Tab Features 0220 2 0 o oo ccc ccc ccc cece ececcececceccecesteeetesesseeesees 162 Placing Option Orders Single Leg 2 0 20 c cece cece eee ec eccececceceees 165 Placing Option Orders Multi Leg 2 0 00 0 c cece eee ececcccececececececeeteceeeeees 168 Option CNIS sesaria eee esl calle eel aes thle de eal 171 Option Ch
228. centage retracement Fibonacci Fan lines are typically drawn at 38 50 and 62 angles from prominent price peak and troughs Theoretically these fan lines may then provide support during subsequent downward corrections and resistance during subsequent upward advances Fibonacci Retracements Fibonacci Retracements are based on the Fibonacci number series and represent price movements in the opposite direction of the previous trend Retracements can be calculated by drawing a trend line between a prominent price peak and trough then forming horizontal lines at the 38 50 and 62 levels of retrace ment from the prior price move Theoretically as prices retrace the retracement levels may act as support or resistance Fill or Kill FOK A Fill or Kill FOK order instructs the broker to immediately fill an order in its entirety or to cancel it FOK instructions are only applicable to limit orders Freeriding This trading violation is the result of buying a security in your Cash Account and then selling the same security without making separate payment on the full pur chase price by Settlement Date This situation is called freeriding because basic ally it is unauthorized borrowing to pay for a trade Fundamental Analysis Fundamental analysis is the study of economic industry and company con ditions in an effort to determine the value of a company s stock Fundamental analysis typically focuses on key statistics in a company s
229. ch paired shares are maximized the imbalance is min imized and the distance for the bid ask midpoint is minimized Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 371 Imbalance Information NASDAQ Only Open Paired Closing Imbalance Closing Far Closing Near Closing Ref Closing Paired Positions Bracket Quantity Margin Requirements Number of opening shares that are able to be paired off at the current reference price Number of closing shares that would remain unexecuted at the current reference price and the side of the imbalance buy sell or none if there is no imbalance Closing Crossing price at which orders in the clos ing book would clear against each other Closing Crossing price at which orders in the clos ing book and continuous book would clear against each other Closing price within the inside at which paired shares are maximized the imbalance is min imized and the distance from the bid ask mid point is minimized Number of closing shares that are able to be paired off at the current reference price Quantity of brackets for the position Please see the Brackets section for more information Notes on closing all or part of a position with brackets e Closing the entire position When a pos ition is closed any contingent bracket orders will be cancelled automatically e Closing part of a position Note
230. ch you want to sort An arrow next to the column name indicates the sort direction ascending or des cending Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 52 e If Auto Sort in Real Time is checked in the Columns and Settings window changes to data in the sort column will affect the current sort order in real time e For example if you have your alerts sorted by Expiration if you change the expiration date of an alert the list will automatically adjust its sort order to put that alert in the correct order relative to the other expiration dates Customizing Columns There are several ways to rearrange the columns displayed in your Alerts tab e You can click the column headers and drag them to another spot in the Alerts tab e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the Alerts tab it will completely displace the column that was there If it is already in the display the two columns will swap places e You can also arrange column order from the Columns and Settings window which is available when you right click on the tab name Check the columns you want to display in the Alerts tab All chosen fields display in the Column Order display on the right Click a column name and use the Up Down but tons to move the column into a new position e
231. chwab amp Co Inc All rights reserved Member SIPC 1015 6153 402 Market Maker Market makers are the dealers in the NASDAQ market They provide liquidity to the market by trading for their customers or for their own accounts and are com mitted to buy and sell shares in the stock in which they make a market Market makers display their buying and selling interest in the Market Depth quotes Market Order An order to buy or sell a security at the prevailing market price Sometimes referred to as at the market A market order guarantees execution but not price Market Peg Pegs the order price to the ask if buying or to the bid if selling meaning the order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price Orders may be adjusted a penny up or down to avoid locking the market EXAMPLE XYZ is currently quoted at 20 bid x 20 05 ask A Market Peg order to buy XYZ with a limit of 20 10 will be submitted at 20 05 If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 10 If the order is not executed it will not update beyond the limit price and will remain posted at 20 10 Max Floor Specifies the reserve size for the order Must be a round lot equal to or less than the order quantity Reserve size has no time priority in Market Depth Only the displayed portion of the order will have time priority EXAMPLE You enter a bid with
232. cket quantity and calculate the new trigger price e Canceling a partially filled primary order If an order partially fills any brackets that were part of the order will become active for the number of filled shares If you cancel the remainder of the unfilled shares it will not affect the filled shares or the brackets e Voided Executions on the primary order If the primary order receives one or more voided fills any brackets against that order will be auto matically deactivated if the full quantity is voided or adjusted for the remaining valid shares that are still open or have filled e Brackets triggering while the primary order is still in open status When the first fill is received for the primary order your brackets begin being monitored in the event that one of your target exits is met If the price touches one of these exits the bracket will trigger an order and the remain ing brackets will be cancelled o When this occurs a new set of bracket exits will be established automatically and any new executions for the primary order will be applied to the new bracket set Any single primary order can only have one bracket set in contingent status at a time e Bracket Exits triggering before the position is updated Occasionally usually due to unusually heavy market volume StreetSmart Edge may be slow to receive position updates This condition coupled with high volatility can result in brackets triggering before the position
233. ckets to an order e The P tile shows all your positions in the sym bol being viewed and allows you to Close pos itions or Add Brackets When viewing a chart for a symbol in which you hold a position or have an open order these will dis play on the chart if enabled in the settings as small flags Order to buy shows S for sell Sh for short Co Multiple open orders Bracket order P Position Hover over the flag to view the details of the order or position or click on the flag to access the actions available Same as above for the O and P tiles In the Watch List tool and Positions tab clicking the bid or ask quote will load the symbol in the All in One Trade tool as a limit order pre filled with the price you clicked If you click the bid quote the order action will auto matically choose Sell if you hold a position in the stock or Short if you do not Clicking the ask quote will set up a Buy order on the stock From the Order Status tab you can e View the status of all orders both open and closed placed via any Schwab channel including Schwab com StreetSmart com etc e View order execution detail with order number time price and more e Change or cancel individual orders including multi leg option orders e Cancel all open orders for a symbol or all orders in total e Add edit or remove bracket exits Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member S
234. click the Favorites menu For the link you want to change click Edit Favorite from the link s expanding menu e Copy Favorite link To copy a favorite link into your clipboard click the Favorites menu and choose Copy link for the link you want to copy e Delete Favorite To remove a favorite from your list click the Favorites menu and choose Delete Favorite for the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 388 Glossary Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Please contact a tax advisor for the tax implications involved in the options strategies referenced AIBICIDIEIFIGIHIIIJIIKIL NIOTPIQIRISITIUIVIWIX lt N Above the Market A limit order to buy or sell a security for a specified price that is higher than the current market price A sell order may be placed above the market in an attempt to sell at higher prices However if the market does not reach these prices the order will go unfilled Above the Money For straddles and collars strike prices of the call and the put are above the cur rent price of
235. cluding all Direct Access orders as well as market orders unless trading on the security has been halted in which case we will make our best effort to cancel cannot be changed Further because of the speed of exe cution and the short life span of marketable limit orders canceling or changing orders may not always be possible Refer to the Change column in your Order Status tab to see if an order can be changed indicated by a Yes or No Contingent Orders All contingent orders display in the Order Status tab The following types of orders will display as Contingent in the Status column e Bracket exits associated with primary orders Click the arrow next to the primary order to display the exits associated with the order Bracket exits can also be added to open orders by right clicking and selecting Add Bracket Please see the Brackets section for more information e Smart trailing stop orders Smart orders with a trailing stop are held up until the trailing stop price is met Once the price is met the order status changes to Open and a market order is submitted for execution Trailing Stop orders can only be entered during the standard session e Conditional Orders Conditional orders display in the Order Status tab as Contingent until the order criteria are met at which point an order is sub mitted for execution and the conditional order s status changes to Inactive while the order it spawns becomes a live order If there are
236. common stock of an established company that has a long record of earnings dividends stability and high credit quality Bollinger Bands Developed by John Bollinger Bollinger Bands are indicators that allow for a com parison of volatility and relative price levels over a period time This indicator con sists of three bands designed to encompass the majority of a security s price action 1 An upper band 2 A lower band 3 A moving average The time period used for the moving average can vary but John Bollinger recom mends 10 days for short term trading 20 days for intermediate trading and 50 days forlong term trading The upper and lower bands are plotted as standard deviation levels typically two standard deviations above and below the mov ing average Since standard deviation is a measure of volatility the bands are self adjusting They typically widen during volatile markets and contract during calmer markets The basic interpretation of Bollinger Bands suggests that prices tend to stay within the upper and lower bands The distinctive characteristic of Bollinger Bands is that the spacing between the bands varies based on the volatility of the prices During periods of extreme price changes or high volatility the bands tend to widen to become more forgiving During periods of stagnant pricing or low volatility the bands tend to narrow to contain prices When prices break through a band this may indicate that the move
237. count for the underlying symbol e The list shows the details of each order price venue quantity etc order number and quantity filled e It also gives you quick access links to Cancel Change or Add Edit Brackets for each order e Buttons at the top of the list also allow you to Cancel All symbol Equity Orders or Cancel All Open Orders These actions can also be accessed by right clicking the Order Status Indicator e For more on changing canceling or editing brackets see Changing or Canceling Orders Position Indicator Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 27 Title Bar Features Gj L100 22 31 indicates you have one pos ition for 100 shares Long position size does not include option positions with an aver age cost basis of 22 31 per share e Click the indicator to display a list of all option and equity positions in your account for the underlying symbol e The list shows each equity position each option position unrealized P amp L for each and includes a link to Close Position and Rol lout Position for option positions e Clicking the Close Position link will opena trade window with the quantity pre filled and Close All selected you can uncheck Close All and reduce the quantity if you wish Clicking Rollout Position will open the All in One Trade tool with a ticket and option chain set up to place a rollout order e Click
238. credit of 0 The investor is protected after a 6 25 loss and may participate in an upside move of up to 17 2 The investor assumes some risk of loss in exchange for retaining some of the upside potential of his XYZ position With a net debit credit of 0 the breakeven price for this strategy remains 64 Collars Gain Loss at Expiration 2 500 2 000 1 500 1 000 500 0 00 1 000 1 500 2 000 50 55 60 STOCK PRICE in dollars stock collar m5 w i 3 5 E ww l lt o Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Straddles A strategy consisting of the purchase or sale of both a call and put option with the same expiration
239. cros sover Williams R The Williams R is a momentum indicator that measures overbought oversold levels The interpretation of Williams R is very similar to that of the K Stochastic Oscillator Readings in the 80 100 range indicate that a security is overbought while readings in the 0 20 range indicate oversold Symbol Formats Retrieving data for certain types of financial instruments requires entering them in a format that is recognizable by StreetSmart Edge Below are instructions for entering valid symbols for the types of data that may be available in StreetS mart Edge Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 416 e Stock Enter the 1 to 5 character stock ticker symbol in uppercase letters For example ABCD e Option Enter the Option symbol in uppercase letters using the following format the underlying security or index symbol followed by the expiration date then strike price then a C or P for Call or Put For example XYZ MM DD YYYY 00 00 C e Indices Enter the index symbol preceded by a For example ABC e Mutual Fund Enter the Mutual Fund symbol using five uppercase letters or digits ending in X For example ABCDX e Preferred Stock Enter the Preferred Stock symbol by following the regular stock symbol with lower case p and optionally a single uppercase letter as a Class indicator For example ABp or YZpP To produce a lower case
240. curity prior to selling the option contracts rather they are done at the same time For use when investor anticipates e Flat to Slowly dropping market Financial Characteristics e Maximum Loss Stock price premium for written put In addition investor has opportunity cost of stock dropping below the strike price of the put e Maximum Gain Put premium plus stock decline down to the strike price of the put e Cash credit from put premium Objectives e Modest risk mitigation and income generation EXAMPLE Sell Write Currently XYZ trades at 25 share An investor would like to participate in some of the downside movement in the stock and generate additional income at the same time Using the Sell Write strategy the investor sells the stock 100 shares and sells one out of the money put 20 strike price for 3 00 per con tract for a total cash credit of 300 00 If the stock declines below 20 00 share the total gain is capped at 800 00 The stock must rise above 28 the break even price before the investor loses money so the short put provides limited upside protection Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 204 Sell Write Gain Loss at Expiration 1 000 800 600 short stock covered put i E 5 i w l lt 19 21 23 25 27 29 31 33 STOCK PRICE in dollars Unwinds Unwind is the term used to refer to th
241. d Industry and to the Sub Industry and click Save as Watch List Quote Data Chg Open Change Change Chg Open Performance 5 Day Close Perf 20 Day Close Perf 1 Mo Close Perf 6 Mo Close Perf YTD Close Perf Volume Market Cap Percentage of change from open price to current price Percentage of change from close price to current price Total amount the stock has gained declined since yesterday s close Total amount the stock has gained declined since market open Difference between the Close from 5 days ago and the Current Price expressed as a per centage Difference between the Close from 20 days ago and the Current Price expressed as a per centage Difference between the Close from 1 month ago and the Current Price expressed as a per centage Difference between the Close from 6 months ago and the Current Price expressed as a per centage Difference between the close from the beginning of the year and the Current Price expressed as a percentage Total cumulative volume for the day The total market value of all of a company s out standing securities Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 316 Screener Plus Column Descriptions The Screener Plus tool can show the following data fields for your screener res ults The Sectors screener has its own set of columns which you can see in t
242. d growth data o Price Performance Price changes and returns over varying periods of time o Metrics Dividends and P E ratios o Technicals SMA EMA RSI and other technical indicators o For descriptions of all the screener criteria see Screener Plus Column Descriptions Check a criterion to add it to the screen When checked several options will appear depending on the type of data to further customize the screen Two links Range and Buttons display o Range Choose Range for the most flexibility as you can completely customize the filters used on the criteria as well as add multiple filters where applicable o Buttons A simpler approach the Buttons view offers a pre set choice of ranges from which to choose Specify either the Range or multiple ranges by clicking Add Another Filter or select one of the Buttons with pre set ranges Add as many criteria as desired then add any data columns you wish to see in the Results but aren t part of the filtering by checking them in the Dis play column ONLY For example if you are doing a Volume based filter but want to see the Last Trade price in the results just check next to Last Trade in the Display column TIP You can also display entire groups of data such as all Analyst Rat ings by checking Display next to the group name If Display is checked next to the group name it means all criteria in that group will display in the results If the Display box is fille
243. d here including Global Settings Account Settings Trading Settings News Provider Settings and Option Chains Settings Server and Proxy Settings Adjust Schwab server settings or set up a proxy server from this window In most cases you should not need to make any changes in this window unless instructed by a Schwab Trading Services Rep resentative Schwab com Links to Schwab Links to Schwab com including education account com information and much more HELP Live Help Communicate directly with a Schwab Trading Ser vices Representative without having to pick up the phone Just open the Live Help window type your question and the representative will respond in real time A It is important that you do not use the Live Help window in the Schwab trading platforms to request authorize or effect the purchase or sale of any security or commodity to send fund transfer instructions or to effect any other transactions Any such requests orders or instructions that you send will not be accepted and will not be processed Help Manual Access online help which includes links to training materials as well as a full text search glossary and more Getting Started Take a tour of StreetSmart Edge and get an over Guide view of the features and tasks you can accomplish in the new flagship tool of the Schwab Trading Services software suite Learning Center Get access to the main educational and lear
244. d in it means only certain criteria in that group will display Expand the group by clicking the yellow arrow to see which criteria will display AS you adjust the criteria for your screen the Criteria Matches column will show how many stocks overall meet that individual criteria The Screen Matches column will show how many matches meet ALL the criteria selec ted so far Additional settings you may wish to adjust on your screen o Update Rate You can set your screen to update its data anywhere from Never to every hour to every 15 seconds Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 314 o Display settings At the bottom of the Criteria tab select how you want the results to display You can view the top or bottom results with as low as 10 results and up to 50 results Then choose which cri teria you want the results sorted by keeping in mind that the sort order does not have to be a column in the display 10 When you are finished click Save Screen in the bottom right corner This will save it to the software for later retrieval If you want to save the screen to your computer right click on the screen and select Save screen name as File Edit a Custom Screen To edit a screen you created simply go to the screen s Criteria tab make the necessary changes per the steps above and save the screen Sectors Screener The Performance by Sector tab of the Screener P
245. dent of the other s e You cannot create an alert or conditional order with a combination of And and Or conditions when you have 3 conditions Remove unwanted additional conditions by clicking Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 254 the minus icon at the end of the condition row Alert amp Conditional Order Notifications The Alert and Conditional Order Notifications tell the software what to do when your alert or conditional order conditions are met Setting up notifications is a step in creating alerts and creating conditional orders Default Notification The default notification is a System Beep but you can change this 1 Go to Settings in your main menu then to the Trading tab and choosing the Notifications sub tab amp You can also change the default notification from the Alert or Conditional Order creation window Click Set Trigger Action and click Edit Default 2 Choose any orall of Load Trade tool with symbol Beep or add a Cus tom Sound To add the custom sound click Browse to find the sound file on your computer Edge comes with several choices Click on the file and click Open to load the sound 3 Once you ve checked all the notification selections you want to apply to all your alerts or conditional orders click Save One Time Notification If you want to stray from your default notification settings occasionally you can do that t
246. der and Sub mit Edit or Delete it If applicable to the selected strategy shows an estimation of the cost or proceeds depending on the number of contracts and limit or market price The estimation does not include commissions or fees unless you specify them in the Trade Set tings window Hover your mouse pointer over the Estimated Cost to open a pop up with a link to Edit Fee Calculation These filters determine which contracts or pair Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 164 Options Tab Features Option Chains Cancel Last Order ings are available for you to choose from when setting up an option trade Choose the number of contracts or pairings to display whether to view calls or puts strike range and more For details on each filter which vary depending on the strategy you have selected see the Option Chain Filters topic Single leg Calls or Puts The option chain displays Calls and Puts grouped by Expiration e Click the arrow at the beginning of the expiration row to expand the strikes for that specific expiration e Click the arrow at the beginning of each row to display the contract specifications and Level 2 quote data Multi leg Strategies The option chain display shows pairings appro priate for the selected multi leg strategy Click the arrow at the beginning of each row to display the legs in each pairing See mo
247. ders Position Indicator e i 100 22 31 indicates you have one pos ition for 100 shares Long position size does not include option positions with an aver age cost basis of 22 31 per share e Click the indicator to display a list of all option and equity positions in your account for the underlying symbol e The list shows each equity position each option position unrealized P amp L for each and includes a link to Close Position and Rol lout Position for option positions e Clicking the Close Position link will opena trade window with the quantity pre filled and Close All selected you can uncheck Close All and reduce the quantity if you wish Clicking Rollout Position will open the All in One Trade tool with a ticket and option chain set up to place a rollout order e Click Review Order to review the order and then Place Order to send the order Placing Equity Orders TIP If you frequently use the same trade order settings consider setting up Trading Hot Keys which allow you to place orders with the touch of a key or combination of keys 1 In the Trade tool or Symbol Hub click the Stock ETF tab In the All in One Trade tool open or click on the Stock ETF tab 2 Enter the symbol in the Title Bar and press Enter on the keyboard or click Go 3 Choose from the Action field whether you wish to create a Buy Sell or Short order If you have selected the order action button view you will Copyright 2
248. devices are not sup ported Connection 5 Mbps Recommended Configuration Operating System Windows 8 Touch screens and tablets not certified or later CPU Intel Core i7 AMD FX 8150 or equi valent Memory 4 GB RAM or higher Disk Space 200 MB hard drive space Graphics 1 GB Video card External USB video devices are not supported Connection 10 Mbps StreetSmart Edge can be used on a Mac com puter with either a Windows emulator ora cloud based solution The cloud based solu tion uses the Internet to access StreetSmart Edge so the program can be used with non Windows based computers Call a Schwab Cli ent Services Specialist at 800 435 4000 to inquire about accessing the cloud based ver sion of StreetSmart Edge You can run StreetSmart Edge on your Mac by installing a Windows emulator which is a program that allows you to run Windows based programs on Mac OS computers Par allels Desktop 7 for Mac is an example of an emulator that allows you to run Windows It is recommended that in addition to using an emulator you enable the right click func tion on your Mac The following steps will guide you through the process to ensure that you are able to right click your mouse 1 Goto System Preferences 2 Click Keyboard amp Mouse 3 Click the Mouse tab 4 You will see a picture of a mouse Click on the drop down menu on the right side Copyright 2010 2015 Charles Schwab amp Co Inc
249. dies settings window Simply the number of shares or contracts traded during a specified time frame e g hour day week month etc Volume at Price Breaks volume down by price range and fur ther by positive or negative movement within that price range Volume at Price may help identify areas of support or res istance indicated by high volume price points The Number of Bars setting controls how Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 294 many price range segments the chart is divided into The default is 12 The VAP study only includes data for the cur rent chart time frame in its calculations so a one year chart would be based on one year of data Calculations are based on the closing price for each period within the chart Volume is negative for a period when the closing price moves down from one period to the next and is positive when clos ing price moves up from one period to the next Chart Lines and Objects The highly customizable StreetSmart Edge Chart tool enables you to draw a variety of objects including trend lines Fibonacci lines annotations and other shape objects The chart below describes each drawing tool available in the software For instruc tions on using the Draw feature see Chart Settings Draw lt gt Get a demonstration and more information on drawing Chart lines and shapes Draw type Description Support
250. e More on Trailing Stops o Direct Access users see the ARCA and NSDQ topics for Order Types available with those venues 7 If you chose an order type requiring a limit and or stop price set those val ues in the specified fields Either enter them manually or click on a price in the Market Depth area to use that price Keyboard shortcuts o Up Down keys increase or decrease by 05 o Left Right keys to increase or decrease by 01 o Shift Up Down keys to increase or decrease by 005 o Shift Left Right keys to increase or decrease by 001 8 Select the Timing for the order Available Timing Choices o Day Causes your order to be canceled at the end of the current market session if the order has not been executed All Market Orders are automatically Day orders Orders are generally con sidered to be day orders unless otherwise specified o GTC Good Til Canceled Instructs the broker to keep an order open until it is either executed or expires At Schwab GTC orders remain open for 60 calendar days unless filled or you request that they be canceled before that time o FOK Fill or Kill Instructs the broker to immediately fill an order in its entirety or to cancel it FOK instructions are only applicable to limit orders o IOC Immediate or Cancel Requires the broker to imme diately fill as much of the order as possible and then cancel any remaining portion It may not be available in all market con Copyright
251. e Heavy volume within a support or resistance area Recent trade activity within a support or resistance area Whenever a Support or resistance level is penetrated by a significant amount the two can reverse roles and become the opposite In other words if price trades significantly through a prior resistance level this level can become a future support level If price trades significantly through a prior support level this level can become future a resistance level Reversal Pattern A reversal pattern implies that the previous trend will be reversed when the pat tern is complete For example after an advance a reversal pattern marks a change in trend from up trend to down trend Rights Rights allow existing shareholders of a corporation to subscribe to shares of a new issue of common stock before that stock is offered to the public A right usu ally has a life of 2 to 4 weeks is transferable and entitles the holder to buy the new common stock below the Public Offering Price Rights are often granted to protect existing shareholders from the effects of dilution Rounding Tops and Bottoms Generally considered to be reversal patterns rounding tops and bottoms are areas on the price chart that indicate smooth curvature of prices rather than dis tinct peaks or troughs A rounding top displays as a convex shape sometimes called an inverted bowl that can precede a new down trend A rounding bottom displays as a concave shape o
252. e cified price band which will be set at a per centage level above and below the average price of the security over the immediately preceding five minute period More information on what triggers a Regulatory Circuit Breaker can be found at NYSE or NASDAQ The Tool Link Icon provides a way for you PEES to link multiple tools so that when a sym bol is loaded in one it changes in all the linked tools 26 Title Bar Features Order Position Status For non symbol specific tools double clicking on a symbol will load that symbol in the linked tools EXAMPLE If you set your Chart Trade and Watch List tools to the green triangle icon any time you loada symbol in the Chart tool it will load in the Trade tool And if you double click on a symbol in your Watch List it will load in both the Trade and Chart tools Changing the Icon Change the icon for a tool by clicking on it default is the red diamond and selecting a different icon from the list Breaking Link If you want a tool to be com pletely separate and have no link to other tools choose the broken link icon at the bottom of the icon drop down This area indicates whether your account has an order or a position in the current security regard less of security type Order Status Indicator e 6 indicates you have one open order for this symbol in your account e Click the indicator to display a list of all option and equity orders in your ac
253. e Local File To save more than 5 versions of your layouts and settings save them locally File names will default to include the date of the backup or you can give them unique names of your choosing If you use the same file name it will overwrite the previously saved version of the same name Loading a Saved Backup Schwab Server To restore your backup from the Schwab server 1 Go to the main menu and click File gt Load 2 Inthe expanding menu select the backup you wish to load Local File To restore a backup saved locally to your hard drive or other storage device 1 Go to the main menu and click File gt Load 2 Choose Load from Local File Find and select the backup file likely in the Saved Data folder of your StreetSmart Edge directory and click Open A The current layout and settings will be backed up to your local drive You may revert to the previous layouts and settings by choosing Undo Load from the File menu Undo Backup Load Each time you load a new layout a backup is saved so that if you change your mind and want to revert to your previous settings you may do so by select Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 24 Undo Load from the File menu Title Bar The Title Baris found at the top of all symbol specific tools in StreetSmart Edge The All in One Trading Charts and News tools as well as the Symbol Hub and Recognia tools
254. e Mar ket Depth screen e Observe the different types of stocks and dif ferent ways of trading based on spreads volume velocity and momentum e Observe chart pattern formation NOTE You should not determine the success rate of a trading strategy based on demo mode or sim ulator performance Orders placed in Demo mode are filled randomly with no regard to price so the fill rates have no resemblance to those you might experience in Live mode Only use demo mode for learning the mechanics of the software Balance and transaction data is not available in Demo mode Use this to log out of your account but keep the soft ware open Useful if you want to switch between Live and Demo modes Otherwise you can choose Exit as described below or just click the X in the upper right corner of the StreetSmart Edge window Once you set up your display and settings cus tomized to your needs you will want to save those changes You have a choice of doing this manually by selecting Save all Layouts and Settings or enabling the auto save feature in the Settings menu Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 29 FILE Save As Load Undo Load Exit below This menu item will be grayed out if you have auto save enabled If not you will need to remember to manually save your layout changes by choosing this menu item before you log off See more on b
255. e and the simultaneous sale of another call with the same expir ation date but a different strike price Depending on whether the purchased call has a higher or lower strike than the sold call a vertical call spread can generally be profitable if the underlying stock or index rises a bull vertical call spread or falls a bear vertical call spread sufficiently Bull Vertical Call Spread A Bull Spread strategy may allow an investor to profit from upward movements in the underlying security The technique requires the investor to purchase at the money or in the money calls at a particular strike price and sell out of the money calls at a higher strike price with the same expiration date The cost of purchasing the call option will be partly offset by the premium received for the sale of the out of the money call This strategy is often termed a debit spread because of the net capital outlay that is required A Bull Spread delivers max imum profit when the stock trades at or above the higher strike price at expir ation For use when investor anticipates e Rising market Security appreciation Financial Characteristics e Maximum Loss Net premium outlay e Maximum Gain The difference of the strike prices less the cost of estab lishing the spread Objective Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 236 e Speculative gain The maximum loss on a spread position remains lim
256. e at the time the order is executed Execution is guaranteed but fill price is not Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 166 10 11 o Stop A market order that is only activated when there is a print or quote that is at or through the stop price On sell stop orders the order is activated when the offer is at or below the stop price On buy stop orders the order is activated when the bid is at or above the stop price Once the order is activated you are guar anteed execution but there is no guarantee of the execution price being at or near your stop price o Stop Limit Similar to a stop order in that a stop price will activ ate the order However once activated the stop limit order becomes a limit order and can only be executed at the limit price specified by you or at a better price Thus you are not guar anteed an execution with a stop limit order o Trailing Stop A stop order request set at a price level that is above for short positions or below for long positions the cur rent price that adjusts as the price fluctuates For a long position a trailing stop would be set below the current price and rise as the price advances Should the price decline the amount of the trailing stop then a stop order would be triggered and the pos ition closed As long as the price doesn t retrace the amount of the trailing stop the position is held If you chose an ord
257. e calls and Regulation T calls also called Reg T or Fed calls An investor who receives a margin call is required to deposit additional funds or securities in a margin account either because the equity in the account does not meet an established minimum equity requirement main tenance call or because additional securities have been purchased or sold short Margin Interest Margin interest is charged daily based on your margin balance Marginable A security that may be used as collateral in a margin account Most listed secur ities trading at over 5 per share are marginable as are most fixed income secur ities OTC stocks and open ended mutual funds 30 days after they have been fully paid for To find out if a specific stock is marginable please contact a Schwab representative Market Capitalization Market Capitalization or market cap is the total market value of a company number of shares outstanding multiplied by the price of the stock For example a company with 1 million shares outstanding and a stock price of 10 would have a market capitalization of 10 million Market Depth Level II Market Depth is a display of both Level I quotes and bid and ask quotes from all quoting market participants market makers and ECNs at lower and higher prices than the best bid and ask Market Indicators A variety of indices and other data that indicates the overall direction and strength of the market Copyright 2010 2015 Charles S
258. e cecececeecececececeeeee 39 Account Details acco c 2c cs og occ d hace cc asudcidaccacclsiganchiguiediaucidaiadueabicseialiaasson 39 Taking Action on Orders and Positions 2 0 0 20 2 eee ccc ccc cece eee ceceeeeceees 40 OIG Stat s ae css thc Ea E RE ES Ra 41 Ogs ES E 6H EEEE oe ee ES Ee DELS LORE RR TAAA EAEAN 41 Order Status Column Descriptions 020 0 0 00 20 0 20 c cece cccceccececcececcececeeee 44 Order Status Columns and Settings 20 0 0 0 0 occ occ ce ccc cececeececeeees 46 Messages a Faia sss cect sce see p de Sas cece eu neeece cdo a etc ia aeaa i 48 PO ake circa la cette haha cea ee secs ke cane amp as eso esses teu ees isaac eee 50 Pe een ecg on se oe eps teak socom aca ted ed ene saab ees teeta Sea 50 Alert Guidelines 2200 00 00 coco c cece cece ccc ccceccccecececcteeccteetstcestteessteteees 51 Alert Columns and Settings 0 0 0 0 00 0 c ccc ccc cence ccncec a Daaa Da2 Laaa oaan 52 Alert Column Descriptions 0 00 00 2 20 20 ccc cece ccc aa Doaa a AAL a L nannan 53 Create Alerts ste mas dress ada dn Secs ian ned deena dean dS hone 54 Alert amp Conditional Order Conditions 0 0 0 00 0 0 c cece cece eee eee ee cece ee 55 Alert amp Conditional Order Notifications 22 20 0000 ccc cececcecececececececeeees 60 Alert Templates sscee Sogo ceese ce ocd hve tced acted chcsedietadeckdedecsbetedcacecedsbecuswcel 61 Balances eee Se ae ae oe EC oe RDN Se OEE 64 Copyright 2010 2015 Char
259. e for limit orders only EXAMPLE A limit order to buy with a displayed price of 50 and a discretionary price of 50 25 is presented as Price 50 Discretion 0 25 Divergence Divergence means that different technical indicators or indices are failing to con firm each other This can be viewed as a warning signal that the prevailing trend may be about to reverse Dividend Amount Value of last quarterly cash dividend or the number of shares an investor receives for each share owned in a stock dividend Dividend Reinvestment The application of cash dividends from an equity security to purchase more shares of the security Do Not Reduce DNR Instructs the broker not to reduce the limit price by the amount of the cash dividend when a stock goes ex dividend and the market price is reduced by the amount of the dividend You can specify DNR on Buy limit GTC orders or Sell Stop GTC orders Double Tops and Bottoms Generally considered to be reversal patterns double tops or bottoms show as two prominent peaks or troughs on the price chart The first peak or valley is typ ically formed on relatively high trade volume and the second on relatively low volume The reversal is considered complete when the middle peak in the case of a double bottom or trough in the case of a double peak is broken Dow Jones Industrial Average DJIA Published by Dow Jones amp Co the Dow Jones Industrial Average DJIA is a price weighted avera
260. e in your account By default transactions for the past 60 days are displayed For a demonstration and more information on you Account Details visit the Training page Rearrange Account Detail Tabs The tabs in the Account Detail tool can be rearranged to your specifications by simply dragging and dropping them Click on a tab and drag it to the left or right to change the order of the tabs TIP You can also quickly see whether you have open orders or positions for a security by clicking the O or P 0E in the upper left corner of the Trade tool and the Symbol Hub Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 39 Adjust Font Settings 1 From the right click or Actions menu select Font 2 Inthe Font window you can adjust the size of the type in the any of the Account Details tabs as well as make the text bold and or italicized by click ing the B or J buttons respectively TIP By default changes only apply to the tab in which you are changing the font size To make the changes to all tabs check Apply to All Account Details tabs Adjust Color Settings Each tab in the Account Details tool has its own customizable color settings 1 From the right click or Actions menu select Colors 2 Inthe Colors window you can customize the colors of each element in a par ticular tab elements vary from tab to tab from background and highlight colors to font colors
261. e order that closes out the positions opened in a buy write or sell write strategy The unwind for the example in sell writes above would be to buy XYZ and to buy to close the 20 short put Unwinds should be viewed more as a closing transaction than as a true option trading strategy Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Rollouts A Rollout also known as a Roll Forward is comprised of an order to close out of an option position with a near term expiration date and an order to open a new position in the same type Call or Put of option with the same underlying and with the same or different strike price and a longer term expiration date Also known as a Rollup or R
262. e original col ors TIP Check Apply to all Notes tools at the bottom of the Colors window if you want the color settings to apply to all Notes tools Notes in Charts e When adding a note to a chart the note is added at the point you right click on the chart and select Add Note But after the note is created you can move it around the chart Additionally a small yellow icon is added to the history control at the bottom of the chart on the date you create the note This icon cannot be moved e When adding a note while in a chart you can also Take a Snapshot of the chart to view later To view the chart within the note open the note and there will be a second tab to the note with the name of the chart and the date the snapshot was taken e To see all notes on a chart you are viewing click the Note icon E at the top of the chart next to the Tab Sync button e Read or edit an individual note on a chart by moving your mouse over the note and then over the name of the note when it appears Click the Read or Edit links to choose your action Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 387 Notes Columns Tools such as Watch Lists Screener Plus and most tabs in the Account Detail tool allow you to display a Notes column which will show the Notes icon if there are notes related to a symbol in the list Go to the Columns and Settings for the tool to add the Notes column
263. e outer strikes typically exceeds the premium received from selling the double quantity middle strike therefore a long butterfly is typ ically established as a net debit position For use when investor anticipates Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 213 e Neutral outlook e Little to no movement in security price e g sideways channels e Low volatility Financial Characteristics e Maximum Loss Initial Net Debit paid e Maximum Gain Difference between middle strike price and outer strike price less net debit e Loses value with time Objective e Gain from correctly predicting price at expiration EXAMPLE Long Butterfly Assume it is June 19th 2014 and Tom a trader has identified XYZ as a stock that he believes will trade relatively flat over the next month Therefore he decides that a Long Butterfly is an appropriate strategy given his outlook XYZ is currently trading at 64 90 and Tom decides that the 65 00 Call is an appropriate middle strike since it is just above the current price In addition he feels that the 62 50 and 67 50 strike prices create an appropriate wingspan for this position Lastly Tom selects the July expiration since it is 30 days away which is in line with his timing forecast Strikes Symbol 7 Calls Jul 19 2014 30 days gt 52 50 07 19 2014 52 50 C gt 55 00 07 19 2014 55 00 C gt 57 50 07 19 2014
264. e position was closed which can be positive or negative Day Change P amp L Profit Loss per share or contract including commissions accrued since the last market close or open depending on your pref Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 101 Day Change P amp L Share Direction Hold Period Industry Name Notes Quantity Realized P amp L Realized P amp L erence to the moment that the position was closed Expressed as a percent of the total realized P amp L which can be positive or neg ative Profit Loss per share or contract including commissions accrued since the last market close or open depending on your pref erence which can be positive or negative Whether the position was a long or short pos ition Indicates whether you ve held the position for more or less than 365 days Long term means you ve held the position more than 365 days one year and is helpful in under standing the tax impact of closing the pos ition Example Long Term if Open Date lt today 366 days Short Term if Open Effective Date gt today 366 days The GICs industry to which the equity or underlying if an option belongs The full name of the security If a symbol in the Realized Gain Loss tab has a note associated with it in the Notes tool the Notes icon F will display Click the icon to see the note s For stocks or mutua
265. e primary order Conditional Order Guidelines Hours You can set up and activate conditional orders at any time including outside of standard market hours and they will display in the Order Status tab However because conditional orders require updated Level I quote information to function they will not initialize until the next trading session After Hours Conditional Orders become inactive at the end of the standard session 4 00 p m ET but they remain in the Order Status tab pending further action such as editing activation deactivation or removal Indices Conditional orders based on indices should only be set up using the variables Trade Price Change from Open and Change from Close variables Although you can create conditional orders that use indices using other variables such as Bid or Ask these alerts will never fire because that data does not exist for indices Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 246 Wide Spreads Conditional orders on symbols with wide spreads may not fire if the spread is too wide Quick Triggers Conditional orders automatically cancel if triggered within 10 seconds of being set StreetSmart Only Brackets Conditional Orders and Alerts created in the StreetSmart platforms can only be viewed and managed from the StreetSmart family of applications and are not currently available from Schwab com or other Schwab application
266. e two strategies are speculative in nature Long Put A strategy consisting of the purchase of a Put option This strategy is designed for a prediction that the underlying stock or index may decline For use when investor anticipates e Downward market direction security depreciation Financial Characteristics e Maximum Loss Debit amount paid for the option e Maximum Profit Strike price less debit paid for option e Break Even Strike price of option less the debit amount paid for the option Objective e Speculative gain The maximum loss on a long put is limited as long as the investor does not exer cise it which will result in a short stock position for their account There is an addi tional risk associated with the expiration weekend If the long put is exercised the investor ends up with a short position in the stock Good news during the weekend could force even greater losses on the investor before he can exit the short equity position The maximum profit or gain is realized if the stock prices goes to zero EXAMPLE Long Put Currently XYZ trades at 25 share The investor employs the strategy of buying Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 199 one in the money put strike 30 for 6 00 share 1 contract 600 Using this strategy the investor pays a cash debit of 6 00 This is the maximum loss the investor can incur If the stock increases to 31 00 s
267. each have the Title Bar at the top because the information they provide is related to one main symbol Compact Title Bar Right click on the Title Bar and select Compact Title Bar if you want the bar to take up slightly less space on your screen It will still show most of the information below minus the Exchange FSI Codes and Hard to Bor row indicators TIP The feature all windows in the software share whether they are symbol specific or not is the Tool Link Icon which allows you to specify which other windows update when you load or click on a symbol Title Bar Features Symbol To load a symbol click in the field type the new symbol and press Enter on your keyboard or click Go You can also choose from recently loaded sym bols by clicking the down arrow in the symbol field Copy amp Paste for Symbols For option sym bols rather than having to type the full symbol in you can right click on a symbol in the Option Chains and select Copy Then right click in the Symbol field and select Paste to load the sym bol For more on the copy and paste functionality see Copy and Paste Option Symbols Quote Shows the last trade price Tick Shows whether the security is up or down for the day Change Change Shows the change in price from previous close Description Shows the company or index name Exchange Shows the exchange on which the security trades FSI Codes A letter after the security name is the Financia
268. ead is opened at a credit in addition to potential profits in a very bearish market a small profit may result if the under lying security rises enough A put ratio back spread delivers maximum profit when the stock declines to zero and risk is limited This strategy often performs most poorly in a moderately declining market in the underlying security For use when investor anticipates e Dramatically falling market in the underlying security e Bullish market in the underlying security if opened at a net credit e Increasing volatility Financial Characteristics e Maximum Loss Shi S number of short contracts net against cost Hig Low credit of establishi g spread e Maximum Gain S h of long contracts Sow of short contracts net against cost cr dit of establishing spread The maximum loss on a put ratio back spread position remains limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the long put the maximum loss may be significantly larger Objective e Speculative gain EXAMPLE Put Ratio Back Spread Currently XYZ trades at 23 share The investor believes the stock will either depreciate dramatically or appreciate and wants to profit Limiting risk is also a goal So the investor employs a put ratio back spread strategy of buying two out of the money puts strike 20 for 1 00 per 2 00 and selling one same ex
269. eam lined view access hidden tabs through the Tabs dropdown To switch back to standard view click the view icon again Sorting Rows Sort rows by clicking the header of the column on which you want to sort An arrow next to the column name indicates the sort direction ascending or descending Customize Color Scheme Choose from 162 different colors accessible through the Action or right click menu under the Colors setting Customize Font Choose the font type size and bold or italic char acteristics by going to the Action or right click menu and selecting Font Rearrange Columns There are several ways to rearrange the columns dis played in the Screen Plus tabs e You can click the column headers and drag them to another spot in the tab e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 305 tab it will completely displace the column that was there If it is already in the display the two columns will swap places Screen Name Top 10 Volume Pre Defined Criteria Search Volume List for Top 10 stocks whose e Current Price is greater than 5 00 e Volume is greater than 250 000 Top 10 Option Volume Top 10 Gainers Search Volume List for Top 10 options whose e Current P
270. eater than 5 00 e Volume is greater than 250 000 Search Volume Over 5 Day Avg Vol List for Top 25 stocks whose e Average Vol 5 Day is greater than 250 000 e Current Price is greater than 5 00 Search Gap List for Top 25 stocks whose e Current Price is greater than Open e Gap is greater than 0 00 e Current Price is greater than 5 00 e Volume is greater than 250 000 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 308 Screen Name Low P E Gainers High P E Top Losers Small Cap Movers over 10 Uptrend Breakout with Increasing Volume Downtrend Breakout with Increasing Volume Pre Defined Criteria Search Chg Close List for Top 30 stocks whose e P E Ratio is less than 15 00 e Current Price is greater than 10 00 e Volume is greater than 250 000 Search Chg Close List for Bottom 20 stocks whose e P E Ratio is greater than 50 00 e Current Price is greater than 10 00 e Volume is greater than 250 000 Search Current Price List for Top 30 stocks whose e Current Price is greater than 10 00 e Market Cap is less than 1000 00 e Volume is greater than 250 000 Search Volume Over 1 Month Avg Vol List for Top 30 stocks whose e Current Price is greater than 10 00 e Avg Vol 6 Month is greater than 2500 000 e High is greater than 20 Day High e 15 Day SMA is greater than 50 Day SMA e 10 Day RSI is greater than 3
271. eceececececeeeeeeeeeeees 362 Watch dle tees tthe et a cae a Mle oe ane ail 362 Watch List Column Descriptions 020 202 0200 0 occ cece eee ccc cececcecccceceeees 365 Watch List Columns and Settings 2 0 0 00 20 0 coco cece eee ec oaaao niaan nnan 377 Copy and Paste Option Symbols 0 20 20 0 20 o oe ccc ceccnceccececceceeeeees 379 NewS i ene ee a DE eee en Ee ee ene ee ee Te 380 News OVER ICY ict cast oes rallies hides i Sgaat seid tata i desi daw dtd daas dpe ce eigale 380 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 5 Breaking News Tab 02 0 0 0 o cece cece cece cece ec ececececeececececeeceseeeceseeeees 382 Symbol NewS osc eos cess cide Soils da nasal Sea eveddccide cece ds dele snustdeoae D L ann 383 News Watch open ohlenteaie aa dicta etdsbentisadediedghadsSasauvan seuddsocdandsealseastiveat g 383 Briefing COM foxes tas Be ee a a ht ets dite Slee a eee ka ee 384 Resources l a eee cece cece cece ec ec ce ceeeeceecececeesecceceeseseesecees 386 Oia ts ae ae Ace le essed eats eae 386 Web Browser o oc csecc cae csiades sede ss sencsidysisadcabseveccushcnnecdsuddee lt dedeeadssausecieaddabcs 388 GIOSSary Sas ee ene a ee cee ad eee elton cee eee secede tase ceees 389 Symbol Formats scosi niaaa aa a otuedioleaseecesuocuabopees 416 Symbol OD os oe ist ses ss etiedci hesters eead opi e EEE iaaah I IEP haina 417 Index SymD S soinera e aa ea e LEa Eini 418
272. ed Gain Loss tabs The default is to apply the settings only to the current tab but if you prefer the set tings to apply to all select Apply to all Realized Gain Loss tabs at the bot tom of the Columns and Settings window before clicking OK Exporting Realized Gain Loss 1 You can Export your Realized Gain Loss data to x s for Office XP and later versions csv or txt formats from the Actions menu or by right clicking within the Realized Gain Loss display 2 Select the save location and enter a name for the export file if you wish to change it from the default and click Save Realized Gain Loss Column Descriptions See Realized Gain Loss for directions on setting up your tab display Columns Description Symbol The unique 1 5 characters used to represent the security Symbols are defined by the dif ferent markets or exchanges Sometimes a security might not have a symbol in which case an internal Schwab reference will be used Acquired Opened Date Date Time position was entered if the pos ition was opened during the current day Date only will display if the position was opened on a prior day Closed Date Time Date Time position was closed Cost The total price paid for the position Cost Basis Method Displays cost basis method for the position Day Change P amp L Profit Loss dollar amount including com missions accrued from the last market close or open depending on your preference to the moment that th
273. ed as a net credit position For use when investor anticipates e Significant movement in security price in either direction e Higher volatility Financial Characteristics e Maximum Loss Difference between middle strike price and outer strike price less net credit e Maximum Gain Initial net credit received Objective e Gain from significant change in price of the underlying security either up or down by expiration EXAMPLE Short Butterfly Assume it is July 15th 2014 and Lauren a trader has identified XYZ as a stock Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 216 that she believes will make either a sharp move higher or lower over the next month Therefore she decides that a Short Butterfly is an appropriate strategy given her outlook and the limited risk that the strategy offers XYZ is currently trading at 32 00 and Lauren decides that the 32 00 Call is an appropriate middle strike since it is right at the money In addition she feels that the 30 00 and 34 00 strike prices create an appropriate wingspan since she feels that the underlying price will either be below 30 00 or above 34 00 at expiration Lastly Lauren selects the August expiration since it is 32 days away which is right in line with her timing forecast Strikes Symbol LastTrad Change Bid Ask Delta Gamma Theta y Calls Aug 16 2014 32 days a gt 30 00 08 16 2014 30 00 C 2 18 0 13 2 1
274. ed by a and then a single uppercase letter For example ABC WS or ABC WS A e Futures Enter the Futures symbol in uppercase letters using the following format begin with a followed by the root symbol then month code and then year code The year code is displayed as one digit For example a March month code H 2015 year code 5 contract of AB would be entered as ABH5 TIP To make it easier to enter symbols particularly option symbols use the copy and paste feature when entering symbols Pattern Day Trading Please be aware that certain trading activity could result in your account being classified as a Pattern Day Trading account There are two important points to understand with regard to pattern day trading 1 How you might become labeled a PDT 2 What it means to be labeled a PDT Your account will be labeled PDT if you execute 4 or more round trip day trades within 5 business days provided the number of day trades is more than 6 of your total trades in that account for that same five day period You need only meet this criteria one time to become designated a PDT Once your account is labeled PDT you are subject to different requirements and restrictions than a non pattern day trader The most significant of these require ments is that your account must maintain at least 25 000 worth of equity If you do not meet this minimum you will receive a margin call to meet the min imum equity requirement which yo
275. ed in the account to cover the cost of the newly purchased securities If no additional funds are deposited within 5 business days of the purchase the sale of these securities will constitute a free ride under Federal Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 66 Balances Fields Cash amp Money Market Cash Balance Margin Balance Short Balance Total Cash Securities Market Value Long Market Value Short Descriptions Reserve Regulation T This will result in a 90 day settled cash up front restriction EXAMPLE If you sold a fully paid for security on Monday the ist you could use the proceeds to purchase new a security prior to the set tlement day of Thursday the 4th 3 day set tlement However if you sold the newly purchased security prior to the settlement date Thursday the 4th you would then be required to deposit funds to pay for the purchase If you sold the new position on Thursday the 4th or anytime there after no additional funds would be required The total dollar value of your unswept or intra day cash money market funds bank deposit accounts and net credit or debit balances you hold in the Schwab account you have selected to view The balance of any credits or debits in your mar gin account Note that with a margin account the balance of unsettled debits or credits for trades will show here until settlement You do
276. ed price for a specific period of time This contract also obligates the seller to meet the delivery terms if the buyer exercises the contract right The owner of call option has the right to pur chase the underlying asset at a specific price and this right lasts until a specific date The owner of a put option has the right to sell the underlying asset at a spe cific price and this right lasts until a specific date Clients may also take spe cialized positions such as spreads straddles and or combinations depending on the level of trading for which they are approved Out of the Money A call is out of the money when an option s strike price is higher than the market price of the underlying security A put is out of the money when the strike price is below the market price of the underlying security Outed A term used by traders to confirm that an order was canceled by the Market Maker or Exchange Over the Counter OTC Over the Counter refers to stocks not traded on registered exchanges Many OTC stocks are traded through NASDAQ OTCBB Bulletin Board or the Pink Sheets Overbought Overbought is a technical condition described as such by various technical indic ators that occurs when prices are considered too high and may be susceptible to a decline Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the Stochastic Oscillator and Relative Strength Index RSI A security is so
277. ed sets of data in one place reducing the time it takes to go from research to trade Options carry a high level of risk and are not suitable for all investors Certain require ments must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Char acteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request You can start out using the Demo Mode which is available every time you log into StreetSmart Edge Demo Mode will allow you learn how to use StreetSmart Edge s trad ing tools and submit safe simulated trades using live market data We recommend you use Demo Mode to familiarize yourself with the features in StreetSmart Edge or any Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 15 How different will my layout look in StreetS mart Edge Can I just copy my existing layout from StreetSmart Pro How can I import my Watch Lists How can I import by Alerts time you are trying out a new trading tool or strategy Go to the Getting Started Guide in the Help menu or you can access the user manual as you are now Visit the Trading Seminars amp Articles page on Schwab com for articles seminars and inform ation on technical trading risk management and investing strategie
278. eir price adjusted on ex date including DNR orders The share quantity may also be adjusted based on the rules of the specific exchange but price will always be adjus ted Pink sheets and foreign securities with 5 let ter symbols ending in F are not adjusted Spin Offs All GTC buy limit and sell stop orders will have their price adjusted on ex date includ ing DNR orders Pink sheets and foreign secur ities with 5 letters aren t adjusted Special Dividends All GTC buy limit and sell stop orders will have their price adjusted on ex Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 121 10 11 12 13 date including DNR orders Pink sheets and for eign securities with 5 letters aren t adjusted NOTE Adjustments are less well defined for foreign securities Schwab s policy is to not adjust these orders but many third parties do Every effort is made to catch adjustments but there are times when adjustments are made and Schwab is not always notified of the changes o Cost Basis Method Available when closing out of a position you can specify the method used to calculate cost basis on the order For more information see Cost Basis Method o Direct Access users see the ARCA and NSDQ topics for Special Conditions available with those venues Similarly to enable Brackets for your order click the Brackets drop down See Brackets Overview for more informatio
279. eld By Institutions percentage may provide insight into stocks that are particularly attractive at the moment to lar ger scale investors Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 350 Earnings Quarterly and annual earnings data helps you drill down into the profitability of a company Or if your investment needs require dividend income or you re looking for growth stocks the Earnings tab may help you identify suitable investments For instance dividend history can help you assess whether a stock has provided consistent dividend returns while growth metrics like EPS year over year five year and projected can provide a sense of the security s historic growth Ratings Get rating from a variety of analysts from Standard amp Poor s Reuters and Schwab Equity Rating For covered securities a break down by number of ana lysts rating and change in rating from Reuters can help you see changes in sen timent over time Metrics Many investors evaluate a company s underlying financial strength and man agement effectiveness based on valuation growth financial metrics financial strength management effectiveness and margins The metrics tab also displays earnings before interest tax depreciation and amortization EBITDA which can be helpful in identifying the core profitability of the company and in comparing the operating income between companies TIPS You ca
280. electronic execution route which allows you to buy sell and short equities during standard market sessions 9 30 a m to 4 p m ET When an order is placed on the Smart venue the order is routed to a competitive execution partner Additionally e Smart orders may be entered outside of the standard session from 4 05 p m to 9 30 a m ET however these orders will be queued for the next standard session open Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 138 e Anorder routed through Smart may have partial fills An attempt to continue to fill the order until it is completed will be made e Fora Day Limit order there is only one commission charge and generally one order number assigned unless you change your order regardless of the number of fills it takes to complete the order e Good Til Canceled orders have the potential for multiple commissions if the order takes more than one day to complete One commission will be charged for each day s combined fills based on execution prices and quant ities The table below shows a list of available options associated with Smart orders Smart Order Routing Action Order Types Order Condi Special Types Conditions Buy Sell All or None or Short Min Quantity All or None or Min Quantity IOC only avail able for listed stocks Stop Stop Limit Trailing Stop Day GTC
281. ember SIPC Strangles A strategy consisting of the purchase or sale of both a call option and a put option with the same expiration date but different strike prices A long strangle offers an opportunity to make money when a stock or index moves substantially A short strangle offers an opportunity to make money when a stock or index stays within a range Long Strangles Long strangles may allow an investor to profit from dramatic price movements in a specific security or index An investor might employ a long strangle when he expects a substantial movement by the security but is unsure of the direction Long strangles involve the simultaneous purchase of both call options and put Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 210 options with the same expiration date but different strike prices typically out of the money The investor may benefit from either a large increase or a large decrease in the price of the stock However the stock must move further than the total premium paid either higher than the call strike or lower than the put strike for the investor to profit at expiration Prior to expiration if the underlying security moves substantially up or down the investor may choose to realize a profit by selling the in the money option before its expiration date In this case while the in the money option will have been los ing time value since it was purchased the l
282. ent as a Smart Market order regardless of the primary order s routing venue e Trigger Value Brackets on orders trigger off the bid ask price for both stocks and options o While the Est Price for brackets on orders is calculated off the Limit or Inside bid ask price for market orders the actual exit trigger price will be based on the average fill price from the primary order See the Bracket Examples topic to get a better understanding of brackets in action 1If you bought a stock at 10 and wanted to try to limit losses to around 10 on the trade you could enter 1 pt 10 or 9 While there is no guarantee that exe cution will be at or near the stop price the Est Price label will show you what the likely result might be if the Stop Loss Exit is triggered Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 152 e Boxed Positions Bracket exits will not function on boxed positions e Missing Quotes Bracket exits placed around stocks that do not have bid ask quotes including Pink Sheet securities will not activate e Wide Spreads Brackets on symbols with wide spreads may not fire if the spread is too wide e StreetSmart only Brackets Conditional Orders and Alerts created in the StreetSmart platforms can only be viewed and managed from the StreetS mart family of applications and are not currently available from Schwab com or other Schwab applications Managing Bracket
283. ently is halted your order will be eligible for execution after the halt is has been lifted Please be aware that when the security resumes trad ing it may be at a price significantly above or below the most recent trade price Head and Shoulders The Head and Shoulders pattern is one of the best known of the reversal pat terns At a market top three prominent peaks are formed with the middle peak or head slightly higher than the two other peaks shoulders When the trend line neckline connecting the two intervening troughs is broken the pattern is complete A bottom pattern is a mirror image of a top and is called an Inverse Head and Shoulders Historical Volatility Reflects how far an equity s price has deviated from its average price overa period of time Immediate or Cancel IOC Requires the broker to immediately fill as much of the order as possible and then cancel any remaining portion It may not be available in all market conditions Unlike All or None AON or Fill or Kill FOK instructions IOC orders may result in a partial execution Immediate or Cancel can be entered with either market or limit orders Implied Volatility The theoretical value in designed to represent the forecasted volatility of the security or index as determined by the prices of multiple call and put options using the Black Scholes pricing model Other variables usually include security price strike price risk free rate of return and da
284. ents the number of shares immediately available to buy bid or sell ask For example a bid of 54 with a size of 500 would indicate an order to buy 500 shares at 54 By the same token an ask of 55 with a size of 1000 would indic ate an order to sell 1000 shares at 55 Smart Smart is a trade execution technology that combines the best of intelligent order routing IOR with market maker liquidity enhancements Smart is designed to deliver trade executions that are as good as if not better than what you would expect to receive using IOR alone Special Conditions Special conditions may be applied to an order such as All or None AON or Do Not Reduce DNR Specialist An individual corporation partnership or group of firms on a listed exchange floor that is responsible for a given exchange traded security The specialist stands ready to buy and sell shares to maintain an orderly market A Market Maker serves a similar purpose for an OTC security Spread The difference between the bid and the ask Generally speaking the more liquid trading volume a stock is the smaller its bid ask spread will be Less liquid stocks those with very light volume usually have larger spreads Standard and Poors 500 Index S amp P 500 The Standard and Poors 500 Index or S amp P 500 lists the 500 largest large cap stocks that is stocks from large companies in various industries Stochastic Oscillator Stochastics compare where a secu
285. er there is no guarantee the out of the money option would retain a high premium even with an increase in volatility Rather than selling following a dramatic price move the investor can continue to hold both options until expiration anticipating even more dramatic price move ments in the future However unless such movements do occur time decay will eventually take its toll on both options premiums For use when investor anticipates e Dramatic movements in security price e g due to an earnings announce ment but unclear whether movement will be up or down e Increased volatility Financial Characteristics e Maximum Loss Total premiums paid e Maximum Gain Unlimited e Loses value with time Objective e Speculative gain EXAMPLE Long Straddle XYZ trades at 25 00 share An investor anticipates that the stock will dra matically rise or fall in the near future The investor purchases one at the money put for 2 00 and one at the money call for 2 00 to participate in large move ments in either direction Since each contract represents 100 shares the total Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 208 cost to the investor for buying both contracts is 400 00 To break even the stock must either fall 4 00 share to 21 00 or rise 4 00 share to 29 00 at or before expiration The investor will profit if the stock goes up more than 4 00 share or falls more than 4 00
286. er alert Click Clear if you want to clear out the fields 5 Next time you create an alert your new template will display in the Tem plates drop down From built in template 1 Click Create Alert in the Alerts tab 2 Choose the template you want to base your new template on from the Tem plates drop down and click Load 3 Make any changes you want to the template 4 Change the Alert Name you cannot save over the built in templates 5 Click Save as Template You may save up to 20 alert templates if you need to save more see Saving a Template to File below 6 Next time you create an alert your new template will display in the Tem plates drop down TIP In both cases be sure to give your template a name in the Alert Name field that gives an indication of the purpose of the alert This will make it easier to find the correct template later on when you want to use it again Otherwise unnamed alerts are given a system generated name using the current date and a sequential number Saving a Template to File In addition to saving templates into the software you can save them to a loc ation other than the default template folder This enables you to share the file with other StreetSmart Edge users or save to an external resource like a CD or USB drive or external hard drive A If you only save a template to a file instead of using the Save as Tem plate button it will not display the template in your Templates drop do
287. er type requiring a limit and or stop price set those val ues in the specified fields Keyboard shortcuts o Up Down keys increase or decrease by 05 o Left Right keys to increase or decrease by 01 o Shift Up Down keys to increase or decrease by 005 o Shift Left Right keys to increase or decrease by 001 If applicable select the Timing for the order Available Timing Choices o Day Causes your order to be canceled at the end of the current day s trading if the order has not been executed All Market Orders are automatically Day orders Orders are generally con sidered to be day orders unless otherwise specified o GTC Good Til Canceled Instructs the broker to keep an order open until it is either executed or expires At Schwab GTC orders remain open for 60 calendar days unless filled or you request that it be canceled before that time Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 167 o FOK Fill or Kill Instructs the broker to immediately fill an order in its entirety or to cancel it FOK instructions are only applicable to limit orders o IOC Immediate or Cancel Requires the broker to imme diately fill as much of the order as possible and then cancel any remaining portion It may not be available in all market con ditions Unlike All or None AON or Fill or Kill FOK instructions IOC orders may result in a partial execution 12 Choose these from the
288. er versions cSV or txt formats from the Actions menu or by right clicking within the Alerts display 2 Select the save location and enter a name for the export file if you wish to change it from the default and click Save Alert Guidelines Hours You can set up and activate alerts or alerts created from templates at any time including outside of standard market hours and they will display in the Alerts tab However because alerts require updated Level I quote information to function they will not initialize until the next trading session Wide Spreads Alerts on symbols with wide spreads may not fire if the spread is too wide Quick Triggers Alerts automatically cancel if triggered within 10 seconds of being set Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 51 StreetSmart Only Brackets Conditional Orders and Alerts created in the StreetSmart platforms can only be viewed and managed from the StreetSmart family of applications and are not currently available from Schwab com or other Schwab applications After Hours e Alerts set to expire on the current trading day become inactive at the end of the standard session 4 00 p m ET but they remain in the Alerts tab pending further action such as editing activation deactivation or removal e Alerts set to expire on a future date and which have not yet expired or triggered will deactivate at the end of eac
289. erally with con sistent distances between strike prices The strategy gets its name from its 4 part structure involving the two outer strikes or wings and two inner strikes representing the body The two inner strikes are typically positioned around the current price of the underlying stock Long Condor Calls A long condor using calls can be considered a combination of an in the money bull call spread and an out of the money bear call spread It is created by pur chasing a lower strike Call selling a lower middle strike Call selling a higher middle strike Call and purchasing a consecutively higher strike Call all with the same expiration date The two middle strikes are typically positioned around the current price of the underlying stock In order to be considered a standard condor the 4 strike prices involved should be equidistant Example e Buy to Open 1 XYZ 01 17 2015 50 00 Call e Sell to Open 1 XYZ 01 17 2015 55 00 Call e Sell to Open 1 XYZ 01 17 2015 60 00 Call e Buy to Open 1 XYZ 01 17 2015 65 00 Call If the distance between the two middle strikes the body is greater than the distance to the outer strikes the wings then the position may be considered to be an albatross spread The cost to purchase the outer strikes typically exceeds the premium received from selling the inner strikes therefore a long condor is typically established as a net debit position Copyright 2010 2015 Charles Schwab amp
290. erate a report 1 Choose a Portfolio on which to report 2 Select which type of Report to view To see a breakdown of each account in the portfolio choose Account Performance 3 Choose the Time Period for the report anywhere from the last 3 months up to inception or a custom date range 4 Click Go to view the report on your screen only Click Printer Friendly to generate a document ready for printing Or click Export to generate a csv file which can be opened in a spreadsheet For more help understanding the reports log on to Schwab com and go to Accounts gt Portfolio Analysis gt Portfolio Performance gt Understand Portfolio Performance Reporting Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 107 Trading and Quotes Trading and Quotes StreetSmart Edge offers three unique tools for entering trades enabling you to choose the tool that works best for your trading needs All in One tool Schwab s most dynamic order entry tool yet with customizable tabs for quick access to the trading actions you use most frequently Equity and Conditional order entry stays highly efficient while option order entry is more intelligent and streamlined The All in One Trade Tool found in Launch Tools under Trade All in One adjusts the order entry fields on the fly in response to your order entry selec tions SO you can add option legs change order strategies and quickly find
291. erspend the account This issue will most frequently be seen in accounts that have trading restrictions Since Schwab is not a cash up front firm you are usually able to place trades in excess of the balance with the understanding that the trade will be paid for by settlement However if your account is restricted due to a trading violation you may not be able to place orders in excess of your balance Please make Sure that you carefully monitor your balances and do not overspend your account This message is most commonly encountered when you already have an order outstanding for the position Occasionally clients place GTC orders or Day orders at the beginning of the day and forget that there is an open order covering the position If you receive this message please check Order Status to ensure that you do not already have an order If you do have an open order you can change the existing order or cancel and replace it Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 19 Who do I contact for If you have additional questions that aren t help with StreetSmart answered here speak with Technical Support Edge installations Services at 1 800 433 9196 upgrades troubleshoot ing and technical sup port questions Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 20 Layouts amp Configuration Layouts Layouts in
292. es e Inside Downticks The inside price decreases e Joins Inside A market participant changes its quote price to the inside price e Leaves Inside A market participant moves away from the inside price e Upticks A market participant not at the inside increases its quote price e Downticks A market participant not at the inside decreases its quote price e Increases Share Size A market participant retains its quote price but increases its share size Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 342 e Decreases Share Size A market participant retains its quote price but decreases its share size e Refreshes Quote A market participant refreshes its quote price and size e Leaves Market A market participant leaves the bid or ask completely Momentum Settings The StreetSmart Edge Momentum tool is customizable allowing you to choose which columns of data to display as well as the order of the columns Access the Momentum tool Settings by right clicking in the Momentum display and selecting Settings or access it from the Actions drop down menu See Column Descriptions for details about each available column Momentum Parameters Time Frame Adjust the Time Frame slider to determine how far back in time you want the Momentum tool to gather data Setting this value too low may result in very volatile spiky graphs Increasing the time frame tends to smooth out these
293. es the decrease in value or increase for short orders from the average fill price required to trigger the stop loss exit The value can be a certain number of points pts or a percentage change from the execution price or the stop loss price itself EXAMPLE Certain aspects of bracket exits may be predefined e Quantity The quantity of brackets on orders will always be equal to the quantity filled in the primary order For brackets on positions you will need to specify the quantity o Order quantities on brackets will not adjust due to corporate actions including but limited to stock splits stock dividends spin offs mergers and name changes o When placing an order with brackets to sell and close out a long position if the tradable quantity of your position is less than the quantity you specify in the order the software will send the order for the lesser amount rather than rejecting the order due to insufficient shares available to trade e Timing Brackets remain active with their primary order or primary position when the primary order fills indefinitely unless they are manually removed or are triggered and filled e Primary Venue Bracket exits can be set up for any equity or option order that opens or adds to an existing position regardless of the venue of the primary order e Hours Bracket exits are only active during the standard session 9 30 a m ET to 4 00 p m ET e Bracket Venue Bracket exits are always s
294. esearch Strategy test ing past performance data should not be con strued as indicative of future results StreetSmart Edge gives you the ability to immediately implement trading strategies with a series of three default layouts These default layouts will be displayed as tabs to help expedite set up time Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 11 How can I customize my layout How do I grab move and resize tools within a layout How do I place addi tional tools on a lay out StreetSmart Edge has many customizable features to help support your trading strategy To set up a custom layout go to Launch Tools in the upper right hand side of your screen You will see a toolbar containing icons for all of the Tools available to you in the plat form Click the icon corresponding what you want to add Continue to add to the layout until you have added the Tools you need to support your Trading Strategy If you would like to add additional layouts click the next to the Layout tab The default label on the tabs will be Layout 1 Layout 2 etc You are able to rename the tabs by right clicking and selecting Rename Layout If you are not sure where to start use one of the StreetSmart Edge default layouts To view more information click here To resize a window move your mouse over the edge of a tool until a double sided arrow appears Click
295. eserved Member SIPC 1015 6153 186 checkbox will display any Weekly or Quarterly expiring options for the currently selected months A similar mechanism exists on the interactive tool provided on the order entry pages research pages and Quick Quote StreetSmart Applications Help You can search for non standard expiring options in many ways From the Options chains when an underlying security has non standard expiring options associated with it then they will be listed along with the standards options If the expiration day is not the Saturday following the third Friday then they will be either weeklys or quarterlys An exception to all nonstandards expiring on days other than the Saturday following the third Friday are the following Volatility based index options VIX GVZ OVZ Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Please read the options disclosure document titled Characteristics and Risks of Standardized Options Adjusted Options What are adjusted options Adjusted options are created as a result of a significant corporate event on the option s underlying stock such as a stock split merger acquisition special dividend spin off or reverse split After one of these events the option is altered to reflect the changes Options are adjusted by adjusting the underlying terms so the buyer or seller will see no change in t
296. espectively For monthly Point amp Figure charts the num bers represent years e Within the rising and falling columns of intraday Point amp Figure charts there are colored squares These markings designate the beginning of a new trading session If you wish to compare the current chart to another symbol you can add the symbol as a line chart that will overlay on the current chart Add a symbol overlay Overlays e Enter the symbol in the symbol field of the Overlays section of Chart Settings and click Add or e Right click on the chart and select Add overlay Edit the overlay 1 Right click on the line so it becomes bold 2 Inthe menu that displays choose Edit You can also right click on the chart key for the overlay and select Edit 3 Inthe edit window you can change the following attributes o Color Click ona color to replace the color assigned by the software o Line pattern Choose from solid dotted dashed and other line patterns Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 270 o Weight Choose from varying line widths o Location In the Show In drop down choose whether to show the overlay on the price chart in an existing pane or in a New Pane below the chart o Average Choose what price the line should show for the symbol Closet Opent Hight Low Typicalt Weighted or Middle 4 When you are finished editing click OK Hide
297. est consensus estimate Negative P E ratios are not considered meaningful and are therefore not displayed Company s Trailing Twelve Month TTM P E ratio relative to divided by the TTM P E ratio of the S amp P 500 Most recent price per share divided by most recent equity per share Price to Sales ratio shows a stock s cap italization divided by its sales over the previous 12 months The percentage of annual earnings paid out in dividends Calculated by dividing the Dividend by Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 327 Metrics EPS ttm Long Term D E Technicals SMA 10 Day SMA 15 Day Total long term debt for the most recent fiscal year divided by total equity for the same period Average of the last 10 days close values includ ing today If the market hasn t closed yet it uses the current price for today s close Average of the last 15 days close values includ ing today If the market hasn t closed yet it uses the current price for today s close SMA 20 Day SMA 50 Day SMA 60 Day Average of the last 20 days close values includ ing today If the market hasn t closed yet it uses the current price for today s close Average of the last 50 days close values includ ing today If the market hasn t closed yet it uses the current price for today s close Average of the last 60 days close values includ ing today If
298. etail tool into your layout you can have up to 8 open so that this vital information is at your fingertips gt Order Status Shows all order activity including conditional and bracket orders as well as the execution details of filled orders Use the Order Status tab to Cancel or Change open orders add or edit bracket orders and activ ate edit or deactivate conditional orders Alerts Set up alerts based on price volume or time criteria that will notify you in the Messages tool when the conditions of the alert are met Alerts provide notification only and do not place orders Use the Conditional Orders tab of the Trade tool or Symbol Hub to set up instructions that trigger and place orders only when your criteria are met Balances Shows account values margin information and more detailed balance information for your account For a quick constant view of your bal ances the Balances Bar is located at the top of your primary layout Use the Show Hide Balances button in the upper right corner of your screen to dis play or hide this information Learn more about the Balances Bar Positions Displays all your open positions with market and fundamental data for each Use the Positions tab to close positions including closing all shares or contracts Realized Gain Loss Shows values pertaining to realized profits and losses for the current day Transactions Displays up to 90 days worth of order transactions that have taken plac
299. ew trigger prices are calculated for the exits Too late to cancel Orders can fill quickly so it s often the case that a com mand to cancel the primary order is too late and is rejected by the system This simply means the primary and bracket orders will proceed as normal The primary order would be an open position with the bracket order s act ive Changing primary order AND brackets You can change the primary order in the Order Status tab but to change the bracket exits themselves right click on the bracket sub order in the Order Status tab and select Edit Bracket You cannot change the order AND its associated brackets via the Change Order function Changing a partially filled primary order When you change an order the existing order is canceled and replaced with a new order When you change an order that has been partially filled the filled portion of the order remains and the unfilled portion becomes a new order o When brackets are associated with the order they remain linked Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 156 to the filled portion of the order and the quantity and trigger price are based on the executions up to the point the order was changed o The new order created by the change which consists of the unfilled portion of the original order and will have a new set of brackets linked to it Any new fills of this order will be used to increase the bra
300. exchange bid ask for Listed securities The order price will automatically adjust as the bid or ask moves until the order executes or the stock is priced beyond your limit price EXAMPLE e XYZ is currently quoting at 20 bid x 20 05 ask e A Primary Peg order to buy XYZ with a limit of 20 05 will be submitted at 20 e If the quote changes to 20 05 bid x 20 10 ask the order price would change to 20 05 e If the order is not executed it will not update bey ond the limit price and will remain posted at 20 05 This field will display next to the Limit Price when a pegged order type is selected Added to the bid or offer to produce the actual order price Allows more flexibility in your order EXAMPLE To peg the offer minus 02 Peg Diff must equal 0 02 the negative sign is required Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 146 Times In Description Force Day Can be entered after 7 00 a m ET and expire at the end of the extended trading day 8 00 p m ET IOC Portions of the order not filled immediately upon reach ing the market are canceled Special Condi Description tions Discretion Allows you to have a displayed price and a discretionary price You can place the order at the price you d like to receive with a discretion amount for the max imum minimum amount you re willing to pay Available for limit orders only EXAMPLE A limit order to
301. f a security s normal trading range When the security reaches the upper band this may indicate a sell opportunity whereas the security reaching the lower band may indicate a buy opportunity Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 290 Historical Volatility Implied Volatility Avg Calls Puts Customizable default of 21 periods with Upper and Lower default of 2 5 Formula The formulas for the upper and lower envel opes are UpperEnveiope SMA 1 F LowerEnvelope SMA 1 F where F is a factor such as 2 5 i e 0 025 for the formulas above Reflects how far an equity s price has devi ated from its average price over the number of periods you specify This study only applies to Daily Weekly and Monthly charts Customizable default of 20 periods and you can choose the Average price the study is based on Close Open etc from the study settings Formula Historical volatility is calculated B 1 R TEAR n i Vol The theoretical value in designed to rep resent the forecasted volatility of the secur ity or index as determined by the prices of multiple call and put options using the Black Scholes pricing model Choose to view the Average of Puts amp Calls Avg Average of Puts Puts or Average of Calls Calls Also choose whether to view actual implied volatility IV Actual or a simple moving average of impl
302. f the true range True range takes into Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 289 Bollinger Bands Envelope account any gap up or down from the pre vious day as well as the high and low for the current day The formula is ATR F TR 1 F ATR where TR is the largest of the absolute val ues of High Low High Yesterdays Close and Yesterdays Close Low The Upper and Lower lines are placed n standard deviations above and below the Mid line simple moving average Since standard deviations are a measure of volat ility the bands widen during volatile price action and contract when volatility drops You can change the variables used in the cal culation from the defaults of period 20 and n 2 standard deviations above and below Rather than two bands that are always an equal percentage away from the central average Bollinger Bands expand and con tract based on the standard deviation of the historical volatility of the price action Formula The formulas for the upper and lower bands are UpperBand SMA m F LowerBand SMA m F where m is the number of standard devi ations and the formula for is gt Price SMA i t x 1 z Employing an Envelope is similar to Bollinger Bands except equidistant from the center average in that the Envelope helps define the upper and lower boundaries o
303. ference the last used as a signal or trigger line You can change the periods used in the cal culation from the defaults of 12 and 26 The default signal line has 9 periods You can also change the average price on which the study is based A variation of the MACD that plots the dif ference between the Signal Line and MACD Changes in the spread between these two lines may be spotted faster potentially lead ing to earlier trading signals You can change the periods used in the calculation from the defaults of 12 26 and 9 The Parabolic SAR stop and reverse is a trend following indicator that may help establish stop loss parameters as well as signaling opportune times to buy or sella stock Because it s a trend following indic ator it tends to be less useful in a sideways market and more useful in a strongly trend ing market A line above the price may indicate a bear ish trend and a line below the price may point to a bullish stock Formula The formula is SAR Tomorrow SAR oday A EP rade SAR aes where AF Acceleration Factor is one ofa progression of numbers beginning at 02 and ending at 20 The AF is increased by 02 each day that a new high is made You can change these values by editing the Min imum Step and Maximum Step fields when setting up the study on your chart And EP Extreme Price Point of the Trade Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member
304. fluence the aver age Customizable default of 20 periods Default study shift is 0 Changing the Study Shift will move the entire study forward or backwards on the chart in relation to the underlying price data A negative number would move the study backwards while a positive number would move it forward Formula The EMA formula is an inductive formula that is the value at time t is based on the value at time t 1 and a current amount The formula is EMA F Price 1 F EMA where Price is set to the Average price variable you select when you set up the study F Factor can theoretically be any value between 0 and 1 but is generally related to 2 F ann period SMA by the formula n l A moving average weighted on the price movement relative to the stock price so that a 1 increase in a 5 stock is rep resented on the chart as a much greater move than a 1 increase in a 75 stock Formula The formula for an n period GMA is Salbe g e iet l MA ezp HE where Price is set to the Average price variable you select when you set up the study Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 286 Moving Average Con v Divergence MACD MACD Histogram Parabolic SAR A trend following momentum indicator using 3 exponential moving averages a short or fast average a long or slow aver age and an exponential average of their dif
305. ften called a bowl or saucer that can precede a new up trend There are currently no measuring formulas associated with these patterns AIBICIDIEIFIGIHIIIIIKIL NIOTPIQIRISITIUIVIWIX lt K Sector Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 411 A sector is a group of companies that generate revenue in similar ways and tend to rise and fall at the same time of the economic cycle Sector investors watch for strength or weakness in the various sectors before making investment decisions The relationship between sector strength or weakness and the busi ness cycle is called Sector Rotation Security Type The type of security such as stock bond or mutual fund Sell Indicates you already own a security and wish to transfer ownership in exchange for cash Sell Signal A sell signal is a condition that indicates a good time to sell a stock The exact cir cumstances of the signal will be determined by the indicator that an analyst is using Note It s unwise to base buy or sell decisions on just one indicator Sell to Close A long option position is closed when it is sold See Option Sell to Open A short position opened when a new option is sold See Option Settlement Date The business day by which you must pay for securities purchased or deliver securities sold Short Interest The number of shares that have been sold short and not yet repurchased Short Sel
306. full version will remain available and you can access it when using a computer that meets the minimum system requirements The upgrade requests are a security function of the Windows 7 operating system These requests will appear in a pop up box titled User Account Control You must click Yes to allow StreetSmart Edge to run Windows 7 incorporated this manual approval Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 18 All of my trading but tons are grayed out What s going on My orders are getting canceled and I don t know why I am trying to sell my stock and am getting a message that I do not own the position I can see the position in my account Why can t I sell process to ensure that only applications trus ted by the user may be added We anticipate that in future releases you will not see as many upgrade requests Generally if your trading buttons are grayed out there is a restriction that has been placed on your account The most common restrictions are placed by Margins as a result of trading violations If you are unable to use the Buy or Sell keys please contact us at 1 800 435 9050 If there is an urgent trading matter a broker may be able to place the trade for you They will also contact Margins on your behalf and make sure that your trading buttons are re enabled if possible Generally orders may be canceled if the trades would ov
307. g Last Extended Quotes 52 Week High 52 Week Low Avg Vol 5 Days Avg Vol 20 Days Avg Vol 1 month Avg Vol 6 month Avg Vol YTD P C Ratio OI P C Ratio Vol expire on a Saturday the previous trading day is the last trading day The number of days until the contract expires The value by which the option is in the money calculated for calls as underlying price strike price or for puts as strike price underlying price The value of the option that is not attributed to the intrinsic value calculated as Midpoint Intrinsic Value The Open Interest for the option contract Open Interest is the total number of outstanding options contracts that have not yet been closed The symbol upon which an option is based The last trade price of the underlying stock of an option Highest price at which the security has traded over the last 52 weeks Lowest price at which the security has traded over the last 52 weeks Average daily volume over the last 5 days Average daily volume over the last 20 days Average daily volume over the last month 1 month 21 days Average daily volume over the last 6 months Average daily volume over the Year to Date Calculated by dividing the total number of puts by the total number of calls for an underlying stock or index based on open interest Calculated by dividing the total number of puts Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved
308. g goods or services Net Profit Margin Measures earnings retained per every dol lar of sales Operating Margin Measures the portion of a company s rev enue remaining after paying variable oper ating costs Pretax Margin Pre tax profit expressed as a percentage of sales Trader s Marketplace The Marketplace located next to the Launch Tools button in the upper right corner of the StreetSmart Edge window offers you a way to access discounted third party resources right in your software Signing up for news analysis and other services through the Trader s Mar ketplace puts a link to that service right in the Marketplace toolbar so you can integrate that service right into the workflow of your StreetSmart Edge display You may have one Trader s Marketplace tool open at a time For more on the Marketplace offerings click Marketplace gt Trader s Mar ketplace and view the list of available third party products Each includes more information about the service as well as a way to sign up and integrate it into your StreetSmart Edge display As part of the Trader s Marketplace Schwab may make available various offers for products and services of third party providers Schwab has established these referral relationships as a convenience to you Please understand that these Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 360 providers are not Schwab agents or personnel They are t
309. gain to re display it e Calculate Shares Calculates the max s Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 163 Options Tab Features Gain Break Even Loss Cal culation Cancel Last Order Save For Later Estimated Cost Option Chain Filters imum number of contracts you can trade based on the dollar amount you specify e Trading settings such as enabling or dis abling order verification default quantities and commission estimates can be found by right clicking in the Trade Ticket area and selecting Trade Ticket Settings or under Settings inthe main menu For more inform ation see Trading Settings e Action Menu vs Buttons You can display your order actions either as a menu shown above or as individual buttons that initiate the order instead of a Review Order but ton Helps you assess the potential implications of a particular option order including the Max Gain Max Loss and Break Even point for a particular trade Adjusts as you change the parameters of your order Will attempt to cancel the most recent options open order for the stock loaded in the Trade tool Check your Messages or Order Status to confirm success of cancel order If you create an options order you want to send at a later time click Save for Later at the bottom of the order entry screen The order will save to the Order Status tab of the Account Details tool where you can right click on the or
310. ge of 30 blue chip stocks Because it is price weighted stocks with the highest prices will have the most influence and those with the low est the least influence The DJIA is calculated by adding the closing prices of the 30 stocks and then dividing by a number that takes into account splits large dividends substitutions and mergers The component stocks of the DJIA have changed over the years to reflect the composition of the U S economy Dual Listed Stocks Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 396 Stocks listed on the New York Stock Exchange that are eligible for trading via NASDAQ in addition to the NYSE and some ECNs AIBICIDIEIFIGIHIIIITKILIMINIOTPIQIRISITIUIV WX lt pH Earnings Announcement Official public announcement of a company s earnings statement for a particular period of time such as annual or quarterly Earnings Per Share Date Date of the last earnings announcement Earnings Restatement If a material inaccuracy is found in a company s previously released earnings statement a restatement is issued Electronic Communication Network ECN An Electronic Communication Network ECN is a computerized trading system that facilitates trading between two parties without a market maker or specialist as an intermediary If an ECN cannot match an order it usually either sends the order to another ECN or market maker or posts the order to the order b
311. gh Low Close and Volume for the point your mouse is aligned with You can also do this by holding down the Alt key as you hover your mouse pointer over points within the chart If your mouse is not over the chart area the data bar displays the last most recent value for those fields TIP You can turn off the Level I Data bar via the Chart Set tings panel Under Settings uncheck Show Level I Data Bar The chart settings panel is accessible by either clicking one of gt the icons or by clicking the arrow to open the drawer and view all the settings choices Set the type and style of chart add overlays draw trend lines and other objects change the colors and more from the Set tings panel For detailed information on each feature in the Settings panel visit Chart Settings The bottom panel under the chart shows the full range of his toric chart data for the Type of chart you ve selected There are several ways to specify which portion of that data you want to display Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 263 Chart Features e Sliders On the timeline you can see left i and right slider handles which you can drag to the date or time to which you want to isolate the chart data shown The starting point in the large chart view will begin at the point of your left slider and the end point will be the loc ation of your right slider Yo
312. ght 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 337 ing High Low Signal Approach 20 e Show 52 Week High Low Check High and or Low to view 52 Week highs and lows for your symbol list e Show Daily Count Column Displays how many times a symbol has broken through a new high or low e New High Low must differ by at least A symbol is considered to have broken a high or low if it differs from the previous high low by 0 01 You can change this default setting by entering a new value here The High Low tool can also alert you to when sym bols you are tracking are approaching a daily or 52 week high or low 1 Check Daily and or 52 Week to enable these proximity alerts 2 Use the Signal within fields to adjust how close the price should be to the high low before it triggers a proximity alert Filter Stock Res ults Momentum Exclude prices Higher than High Low tool will not display high low alerts for symbols trad ing higher than the price specified here e Exclude prices Lower than High Low tool will not display high low alerts for symbols trad ing lower than the price specified here e Exclude 5 Day Average Volume lower than High Low tool will not display high low alerts for symbols with a 5 day average volume lower than the number of shares spe cified here e Exclude 5 Day Average Dollar Volume lower than High Low
313. ght click in the Level I area of your Trad ing tool and select Level I Settings or left click on the El icon to begin making changes Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account Margin trading increases your level of market risk For more information please refer to your account agreement and the Margin Risk Disclosure Statement Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 9 FAQs Getting Started FAQ Here are some frequently asked questions about getting started with StreetS mart Edge Why was StreetSmart Edge created How do I access download StreetSmart Edge Can I get real time bal ance information and streaming quotes on StreetSmart Edge What types of orders can I place on StreetS mart Edge I trade Options How does StreetSmart Edge support Options trading StreetSmart Edge is Inspired Trading By Design The platform was created to reduce the learni
314. ging canceling or editing brackets see Changing or Canceling Orders Positions Indicator If you hold a position in the selected option a small P indicator gwill display next to the Strike price e Click the indicator to display a list of all option and equity positions in your account for the underlying symbol Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 172 e The list shows each equity position each option position unrealized P amp L for each and includes a link to Close Position e Clicking the Close Position link will open a trade ticket window with the quantity pre filled and Close All selected you can uncheck Close All and reduce the quantity if you wish Click Review Order to review the order and then Place Order to send the order Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Option Chain Filters These filters determine which contracts or pairings are available for you to choose from in the option chain when setting up an option trade Choose the num ber of contracts or pairings to display whether to view ca
315. given market over a specified period of time resulting in a curving line on the chart Liquidity The ability of a stock to be readily bought or sold without causing significant price fluctuations Generally the greater the number of buyers and sellers of a par ticular stock the more liquid the stock Locking the Market Market condition in which there are identical bid and ask prices for a stock Look back Period The look back period is the number of periods minutes days weeks months used to calculate an indicator For example a 14 day RSI would have a look back period of 14 days Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 401 Maintenance Call A call for additional funds or acceptable collateral to be immediately deposited into your margin account This type of margin call is generated when the equity in a margin account does not meet an established minimum requirement This can be caused by fluctuations in market prices or your additional use of margin Margin Account This type of brokerage account allows you to borrow funds using your own mar ginable securities as collateral The borrowed funds may be used for the pur chase of more securities Margin Balance The net open balance in your margin account If negative this is the amount owed to the brokerage firm If positive the balance is available to earn interest Margin Call This term refers to both maintenanc
316. green messages Scrolling through a ticker to get a feel for the momentum of a stock The Momentum tool can help remove this burden by counting the messages separating them by stock and displaying the overall redness or greenness of the data for each stock As with any other tool or technical indicator it the Momentum Tool should not be used as a sole means of investment research Background Reading the ticker tape is an old trading method However this skill has tra ditionally been made difficult by three complexities The first complexity is determining the movement potential of a signal types of signals used in the Momentum tool are described at the bottom of this page In other words quickly deciding if a particular signal represents buy or sell pressure The second complexity is separating intermingled signals of different stocks from one Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 341 another The third complexity involves the difficulty of accurately remembering the flow and direction of signals for extended periods of time especially when multiple stocks are being tracked Basic price tickers were originally designed to simplify the first problem by color coding the ticker data green or red to indicate buy or sell pressure However the separation problem and the memory problem still remained The graphical tick ers are designed to address these remaining two complexitie
317. h and then sell the new position before the settlement of Monday s sale you will then be charged with a Good Faith Violation This is because the security purchased with unsettled cash was sold before payment of settled funds was made If you pur Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 71 chase on Thursday the 4th you may place a Sell at anytime since the purchase was made with settled funds Balances Bar The Balances Bar is a panel across the top of your StreetSmart Edge screen that displays pertinent account balance information at a glance You can choose whether to display the Balances Bar by clicking the Show Hide Balances button in the upper right corner of your window Add Balances Add balances to the bar by right clicking in the bar and selecting the value you want to display You may display up to 8 balances Rearrange Balances Click on a balance column and drag it to the desired position Remove Balances Mouse over the balance and click the X in the corner to close a Balance column out of the display You can also right click and uncheck the column to remove it TIP You can also right click in the bar and select Balance Bar Settings to add remove or rearrange the Balances bar columns In the Balance Bar Settings window check the columns you want to display and then arrange them in the Column Order panel on the right Click Save when you re finished
318. h standard session 4 00 p m ET but will reactivate at the open of the next trading day s standard ses sion until the alert expires is triggered or is canceled deactivated Index Alerts Alerts for indices should only be set up using the variables Trade Price Change from Open and Change from Close Although you can create alerts for indices using other variables such as Bid or Ask these alerts will never trigger because the variables do not exist for indices After an Alert Triggers e Alerts established with conditions that have already been met or are immin ent will not activate and you will be presented with an opportunity to make changes to your alert e After any alert has triggered it will automatically be deactivated The same alert cannot trigger more than once without being reactivated first e If you are not logged on when an alert triggers a message indicating that the alert triggered in your absence will display in the Messages window at login Alert Columns and Settings The StreetSmart Edge Alerts tab found in the Account Details tool is cus tomizable allowing you to choose which columns of data to display for the alerts in your account as well as the order of the columns Access the Alerts tab Set tings window by right clicking in the Alerts display and selecting Columns and Settings or access it from the Actions drop down menu Sorting Rows Sort rows by clicking the header of the column on whi
319. hanges and close the window Keyword Filters Filters allow you to narrow your breaking news display to subjects or companies of particular interest to you A green check on the Keyword Filters button indic ates there are filters applied to the Breaking News tab 1 Click Keyword Filters at the top of the Breaking News tab 2 Check Look for Keywords and then specify where you want to look for them In headlines only in stories only or both Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 382 3 Enter the keywords you wish to search for putting commas between each word or phrase The search keywords are treated as though they have an or between them so if any one of your keywords turns up in a breaking news article it will display in your Breaking News tab 4 Click OK when you re finished Symbol News The Symbol News tab displays news for a single symbol over a specific time frame Click a headline to display the article in the preview pane Double click on a headline or right click and select Open Story to open the article in its own win dow To search for news by Symbol e Enter the symbol or select a previously entered symbol from the symbol drop down and press Enter or click Go To search for news by News Code e Enter the news code or select a previously entered news code from the sym bol drop down then press Enter or click Go e If you need to search for a news
320. hare the long put will expire worthless and the investor loses the 6 premium The maximum gain if the stock price is lower than the strike is the difference between the put strike and the closing price less the premium debit spent in buying the put If the stock is trading at 19 then 30 19 6 5 profit The break even point for the strategy occurs when the price of XYZ is at 24 Long Puts Gain Loss at Expiration w L kz l W oO z lt o 15 20 25 STOCK PRICE in dollars Short Put The Short Put generally will allow an investor to profit from upward movements in the underlying security or index It uses the exact opposite structure as the Long Put If the security rises in value the investor can generally profit The max imum the investor can profit is the premium received by selling the option If the security declines in value the maximum the investor can lose is the strike price less the credit received for selling the put For use when investor anticipates e Increasing market security appreciation Financial Characteristics e Maximum Loss Strike Price less credit received from sale of option e Maximum Gain Credit received by selling the put option e Break Even Strike Price of the option less the credit received for the sold option Objective e Speculative gain EXAMPLE Short Straight Put Currently XYZ trades at 25 share The investor believes the stock will rise and wants t
321. hart tool will display on the chart You can move the note around to a specific location on the chart as well as tak ing a snapshot of the chart to include in the note when you cre ate or edit the note To edit your notes click the Note icon E at the top of the chart e Orders If enabled when viewing the chart for a stock with an open order the order will be indicated next to the price scale of the chart at the relevant price level Hover your mouse over the indicator s to see details of the open order or click the indicator to make Change or Cancel your order You can also Add Brackets to the order from the chart e Positions If enabled when viewing the chart for a stock in which you hold a position the position will be indicated on the left side of the chart at the relevant price level Hover your mouse over the indicator s to see details of the position or click the indicator to access the ability to Close Position right from your chart o If your position does not have Cost Basis information available it will not display on the chart You can add missing Cost Basis data from the Unrealized Gain s Losses tab on Schwab com if you want to see such pos itions within your chart o If the value of the Cost Basis is outside the price scale being displayed on the chart the position will not display Corporate Events e Choose which types of corporate events to display on charts Dividends 5 Earnings and or Splits 5
322. he Sectors topic Basic Symbol Description Sector Industry Sub Industry Market Cap Exchange Dividend Dividend Yield Last Trade Open Prev Close Reported Close High The identifying symbol for the item in the Watch List This column cannot be removed or moved within the Watch List Company name or description of item GICS Global Industry Classification Standard sector classification GICS Global Industry Classification Standard industry classification GICS Global Industry Classification Standard sub industry classification Market value of all of a company s outstanding shares TIP Enter Market Cap value in millions For instance to screen for stocks with a market cap of greater than a billion set the filter to Market Cap is greater than 1000 Exchange on which the security is listed Dividends paid by company over last 12 months in dollars per share Dividends paid by company over last 12 months as a of Previous Close Last trade price as of the screen s last update Opening price for the day Closing price from previous market session Close price reported by exchange Highest price the security has reached that day as of the screen s last update Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 317 Basic Low Lowest price the security has reached that day as of the screen s last update
323. he Fibon acci levels of 0 0 23 6 38 2 50 61 8 100 161 8 261 8 and 423 6 Some of the lines may not be visible because they will be off the scale Lines are displayed by drawing a trend line between two extreme points for example a trough and opposing peak Then an invisible vertical line is drawn through the second extreme point Three trend lines are then drawn from the first extreme point so they pass through the invisible vertical line at the Fibonacci levels of 38 2 50 0 and 61 8 Highlight areas of your chart using the rectangle or oval shapes Click on the chart where you want to put the object and drag it to the size you need e Right click and select Edit to make changes to the object e You can adjust the line pattern weight and color as well as selecting a Fill color The Fill can be a gradient of two different colors or select the same color in both boxes to give ita solid background e To have no color in the background move the Opacity setting all the way to the left e To adjust the shape of the object click it so it becomes bold and grab one of the square anchors and drag it to reshape the rectangle or oval shape To point to a specific spot on your chart use the Arrow figure e Click on the chart to add the arrow If you want to change the position click on it so a gray square appears in the middle of it At this point you can drag it to a new position e You may also right
324. he Recognia tools use the Getting Started Video Tutorials and other help links in the upper right corner of the Recognia window You can also click on the red icons for help with specific features of the tool Recognia Inc is not affiliated with Charles Schwab Schwab does not endorse any of the content or features made available to you in Recognia s tools Schwab does not recommend the use of technical analysis as a sole means of investment research Strategy testing past performance data should not be construed as indicative of future results PredictWallStreet PredictWallStreet is a third party web site that can be opened within StreetS mart Edge and allows you to see and contribute to real time community sen timent on stocks as well as view forecasts based on community sentiment In the PredictWallStreet window you can choose between two tabs e Prediction Board lets you contribute your prediction about a stock fora variety of time frames and then shows you the community s overall bullish or bearish sentiment both for today and over time e Technical Indicators uses algorithms developed by PredictWallStreet that use incoming community predictions in the context of various historical data to create a set of technical forecasts released every morning before market open The Technical Indicators tab also shows the results of the previous day s forecast and whether or not it was correct TIP You may display up to 8 Predic
325. he Settings at the bottom of the tab click the 4 expansion arrows to view start with the actual Implied Volatility Dividend Yield and Interest Rate percentages but you can adjust them to work through what if scen arios You can also more precisely adjust the slider values by manually entering a number in the settings e View the probability for any price point by clicking on the graph Crosshairs will display pinpointing the price on the vertical crosshair and estimated profit or loss on the horizontal crosshair The blue bar at the top of the tab will change to show the probability of the underlying price Touching lor Expiring at that price point 1Probabiliy of Touching is the possibility of the stock touching the selected strike price between now and expiration Probability of Expiring shows the probability of an underlying stock s price being above or below the chosen strike price at expiration Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 180 The Trade and Probability Calculator provides calculations that are hypothetical in nature and do not reflect the actual investment results or guarantee future res ults The calculations do not consider commissions or other costs and do not con sider other positions in your account s for which a specific trading scenario is being examined Rather these values are based solely on the individual contract or pair of contracts in this
326. he Trade tool and Symbol Hub and are called out below 1 If trading in the All in One trade tool select the tab of the strategy you wish to trade or use the tab drop down menu to select a new strategy See the All in One trade tool help for more information on setting up tabs If trading in the Trade tool or Symbol Hub click the Options tab 2 Enter the underlying symbol in the Title Bar and press Enter on the key board or click Go Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 168 Note that within the Account Details Position tab multiple Option symbols in the same underlying can be loaded into the All in One Trade tool at the same time To do so double click on the parent row from Positions Strategy or hold down the Ctrl key and select multiple rows from within any Position view then click the Close Position button 3 If trading in the Trade tool or Symbol Hub select the type of option order you wish to place from the Strategy Selector For more on the types of strategies you can trade from the Options tab see Option Strategies Over view 4 The Option Chain display at the bottom of the Options tab will display all the eligible pairings based on the strategy you have selected 5 You can further filter the contracts or pairs displayed using the Option Chain Filters 6 Click within the Bid column or Ask column to select the pair you would like to trade The Midpoi
327. he given strike price On the downside the underlying security has to fall further than the collected premium before money is lost so the written call also gives a limited amount of downside protection This strategy is different from covered call writing only in that the investor does not own the security prior to selling the option contracts For use when investor anticipates e Flat to Slowly rising market Financial Characteristics e Maximum Loss Stock price premium for written call In addition investor has opportunity cost of stock appreciation beyond the strike price of the call e Maximum Gain Call premium plus stock appreciation up to the strike price of the call e Cash credit from call premium Objectives e Modest risk mitigation and income generation EXAMPLE Buy Write Currently XYZ trades at 25 share An investor would like to participate in some of the upward movement in the stock and to generate additional income at the same time Using the Buy Write strategy the investor buys the stock 100 shares and sells one out of the money call 30 strike price for 3 00 per share for a total cash credit of 300 00 If the stock appreciates past 30 00 share the total gain is capped at 800 00 The stock must fall below 22 the breakeven price before the investor loses money so the short call provides limited downside protection Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC
328. he inside ask price The quoted size of the inside bid price Ending Ask price of the market session Ending Bid price of the market session Ending Midpoint price of the market session Midpoint between Bid and Ask Icon shows the availability of news on a symbol Click on the icon to open the news or right click and select View symbol news icon indicates there is new news for the sym bol icon indicates read old news No icon indicates no news Company name or description of item GICS Global Industry Classification Standard Sector classification Sector is the most broad category used Sectors are composed of Indus tries which are composed of Sub Industries GICS Global Industry Classification Standard Industry classification Industry is the middle cat egory used Sectors are composed of Industries which are composed of Sub Industries Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 367 Company Info Sub Industry Market Cap Mkt Cap Class Dividend Amount P E ttm EPS ttm SER Spread Exchange Dividend Yield Greeks IV GICS Global Industry Classification Standard Sub Industry classification Sub Industry is the most specific category used Sectors are com posed of Industries which are composed of Sub Industries Market value of all of a company s outstanding shares in millions M or billions B C
329. he investor keeps the net premium received The maximum loss is the difference between the option strikes less the call premium received 30 20 5 5 or 500 see above The breakeven price of 25 is calculated by sub tracting the net credit of the spread from the strike price of the short option Vertical Credit Spread Gain Loss at Expiration a TE 5 Z Tr iz iz l lt 16 18 20 22 24 26 28 30 32 34 STOCK PRICE in dollars Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 241 Bear Vertical Put Spreads The Bear Put Spread may allow an investor to profit from downward movements in the underlying security It uses exactly the opposite structure of the Bull Ver tical Put Spread and requires the investor to buy a high strike put and sell a low strike put with a lower premium The sale of the less expensive out of the money put will partly offset the cost of purchasing the in the money put The maximum the investor can profit is the difference between the strike prices used to create the spread less the cost of establishing the spread If the security rises in value the maximum the investor can lose is the difference between the premium paid for the long put and the premium received from the short put For use when investor anticipates e Declining market security depreciation Financial Characteristics e Maximum Loss Net premium outl
330. he valuation of the option due to the corporate action Options are also adjusted to ensure that the overall equity or obligation of an option contract remains intact after a significant corporate action or activity How can I tell if an option has been adjusted When an option seems much too cheap or too expensive it may be adjusted There are several ways to help identify an adjusted option e There are two different option symbols with the same month and strike price e The abbreviation ADJ appears anywhere within the option description e A numeric digit 1 2 etc is added as a suffix to the underlying stock sym bol E g XYZ1 01 21 2012 25 00 C Frequently Asked Questions Adjustments made to options are often complex We encourage you to read the Frequently Asked Questions PDF Schwab has created to find out more If you have additional questions please contact us at 1 877 594 6324 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 187 Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Please read the options disclosure document titled Characteristics and Risks of Standardized Options Mini Options What is a mini option On March 18th 2013 options exchanges launched mini options on five popular high priced securities Apple AAPL Amazon com AMZN SPDR Gold Trust
331. header of the column on which you want to sort An arrow next to the column name indicates the sort direction ascending or des cending e If Auto Sort in Real Time is checked in Columns and Settings changes to data in the sort column will affect the current sort order in real time e For example if you have your transactions sorted alphabetically by Symbol as transactions take place the list will automatically adjust its sort order to put transactions in alphabetical order Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 105 Customizing Columns There are several ways to rearrange the columns displayed in the Transactions tab e You can click the column headers and drag them to another spot in the Transactions display e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in Trans actions it will completely replace the column that was there If it is already in the Transactions display the two columns will swap places e You can also arrange column order from the Columns and Settings window which is available when you right click on the tab name Check the columns you want to display in the Transactions tab All chosen fields display in the Column Order display on the right Click a column name and use the Up Down buttons to move the column into a new posit
332. heta Iv v Calls Jul 19 2014 46 days a gt 55 00 07 19 2014 55 00 C 8 70 0 05 8 35 8 60 0 8629 0 0195 36 6456 gt 57 50 07 19 2014 57 50 C 6 40 0 15 6 35 6 50 0 7809 0 0253 35 3087 gt 60 00 07 19 2014 60 00 C 4 71 0 09 4 60 4 65 0 6723 0 0300 34 1690 gt 62 50 07 19 2014 62 50 C 3 15 0 20 3 10 3 20 0 5435 0 0321 33 3631 gt 65 00 07 19 2014 65 00 C 2 03 0 11 2 02 2 04 0 4102 0 0310 32 8605 gt 67 50 07 19 2014 67 50 C 1 23 0 11 1 22 1 24 0 2880 0 0269 32 4362 gt 70 00 07 19 2014 70 00 C 0 71 0 07 0 70 0 72 0 1892 0 0212 32 2435 gt 72 50 07 19 2014 72 50 C 0 42 0 02 0 38 0 41 0 1176 0 0154 32 2481 y Calls Aug 16 2014 74 days v Source StreetSmart Edge Trade Setup Here is the breakdown for Steve s setup and trade e Current XYZ Price 65 98 e Current Bid Price XYZ 07 19 2014 62 50 Call 3 10 e Current Ask Price XYZ 07 19 2014 65 00 Call 2 04 e Current Ask Price XYZ 07 19 2014 67 50 Call 1 24 e Current Bid Price XYZ 07 19 2014 70 00 Call 0 70 e Steve s Trade e Sell to Open 1 XYZ 07 19 2014 62 50 Call 3 10 e Buy to Open 1 XYZ 07 19 2014 65 00 Call 2 04 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 223 e Buy to Open 1 XYZ 07 19 2014 87 50 Call 1 24 e Sell to Open 1 XYZ 07 19 2014 90 00 Call 0 70 e Net Credit 3 10 2 04 1 24 0 70 0 52 The Profit Loss profile for this trade is as follows Short L
333. hird parties over whom Schwab has no control If you choose to receive services and or products from these providers you do so at your own risk and you are solely responsible for evaluating whether these providers and their services and or products are appro priate for your use Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 361 Watch Lists Watch Lists The Watch List tool allows you to monitor a wide range of streaming market data Last Trade Volume etc about securities of interest to you You can also take a variety of actions from your Watch List such as initiating a trade getting news and quotes and setting an alert Right click on any symbol in your Watch List to access these features lt gt Get a demonstration and more information on Watch Lists Note that you can use the Actions menu button to access many of the features listed below You may have up to 8 Watch List tools open across all your open layouts Indi vidual Watch List tools can have up to 20 tabs each with 150 symbols You can also save up to 20 tabs to the software but save as many as you wish to a local hard drive using the Save as File feature Create a new Watch List tab 1 Right click on the tab at the top of any Watch List and select New Watch List or click the next to the tabs 2 Enter symbols in the Add Symbol s field Add multiple symbols at once by adding a comma between each symbol
334. icking OK Tab Contents You can customize the types of stocks to track in a High Low tab to display any combination of the following e All NASDAQ stocks Check NASDAQ e All NYSE stocks Check NYSE e Indices Check Indices to see highs and lows for all indices for which Schwab receives data e Custom symbol list Check Custom Symbol List and enter symbols into the Input Symbol s Enter multiple symbols separated by a comma or enter them one at a time and press Enter or click Add e Any of your Watch Lists To watch highs and lows for one or more Watch Lists select the list from the Select Watch List drop down and click Add The symbols in the list will be added to the list of custom symbols e Current Positions Check Include Current Positions to see breaking high low data for positions you hold Save Custom Symbol List If you create a custom symbol list you want to keep for future use click Save as Watch List Remove symbols from Custom Symbol List Find the symbol you wish to remove from you list may need to use the scroll bar to move through the list if it s long and click the X next to the symbol to delete it Settings Conditions e Show Daily High Low for last days Check High and or Low to view daily highs and lows for your symbol list You can adjust how many days back to compare for determining the daily high or low essentially changing how a day is defined from the default of 1 up to Copyri
335. ied volat ility ITV SMA Customizable default period for the IV SMA is 20 Implied Volatility studies are only avail able on daily weekly and monthly charts for optionable securities Implied Volatility Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 291 Keltner Channels values are computed using the Black Scholes model and may not be available on all underlying securities The Schwab Avg Implied Volatility Call Implied Volatility and Put Implied Volatility while based on the Robert E Whaley cal culation are derived using methods that may differ from those used by other data providers AVG formula The formula used in calculating this value is 2 in the money calls nearest to the current underlying price 2 in the money puts nearest to the current underlying price for the two nearest expir ations 2 out of the money calls nearest to the current underlying price 2 out of the money puts nearest to the current underlying price for the 2 nearest expirations 16 Calls or Puts formula The formula used in calculating this value is 2 in the money calls puts nearest to the current underlying price for the two nearest expirations 2 out of the money calls puts nearest to the current underlying price for the two nearest expirations 8 Keltner Channels consist of two bands that are not equidistant from the EMA Rathe
336. ilable with regular stock and option orders are not available with Conditional Orders 7 If you choose Bid or Ask in the price field you may add a Delta to the bid or ask price when the order is sent You may type a Delta value in the field or use the up down arrows to select a Delta in increments of 01 Price Delta Examples Combining a Buy Limit with a Price Delta e Buy 100 shares of MSFT at Bid 10 Current Bid at time of trigger 40 00 e When triggered order will attempt to Buy 100 shares at 39 90 Limit for the Day only Combining a Sell Limit with a Price Delta e Sell 100 shares of CSCO at Ask 07 Current Ask at time of trigger 23 00 e When triggered order will attempt to Sell 100 shares at 23 07 Limit for the Day only 8 Choose how the software will alert you when your conditions are met by clicking View Notifications You can either choose the default notification settings or set up one time only notification settings For more information visit Alert amp Conditional Order Notifications 9 A summary of your conditional order displays below the Orders panel show ing what the conditional order will do and when 10 Once your conditional order settings are to your liking you can either choose Review Order Save as Template and or save as a template to a file TIP Due to the complexity of Conditional Orders turning off Order Verification in the Trade Settings will not apply to conditional orders You must confir
337. ill have a Hard to Borrow indic ator under the name of the exchange If the stock you wish to short has this indicator con sider that it may be difficult to fill your order For questions on shortable share availability please contact Securities Lending at 1 800 355 2448 Stocks that have triggered the regulatory circuit breaker will be annotated with a RCB indicator in the Title Bar of a window National securities exchanges and FINRA have implemented a new limit up limit down mech anism FINRA Rule 6190 to combat extraordin ary market volatility The new regulation mandates that firms prevent trades in listed equity securities from occurring outside of a spe cified price band which will be set at a per centage level above and below the average price of the security over the immediately preceding five minute period More information on what triggers a Regulatory Circuit Breaker can be found at NYSE or NASDAQ Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 116 Title Bar Features Tool Link Icon The Tool Link Icon provides a way for you PEES to link multiple tools so that when a sym bol is loaded in one it changes in all the linked tools For non symbol specific tools double clicking on a symbol will load that symbol in the linked tools EXAMPLE If you set your Chart Trade and Watch List tools to the green triangle icon any time you load a
338. in the Margin Account Trading on margin does not require settled funds If 100 of the trading activity occurs on margin there will be no difference between the settled funds to trade balance and the total avail able to trade balance Traders who fit this profile will not be affected by the special requirements that may result from Cash Account trading activ ity Traders who occasionally trade non marginable securities in the Cash Account should continue reading Settled funds are e incoming cash such as a deposit or wire e available Margin Loan Value e settled sale proceeds of fully paid for secur ities Settled funds may be used for purchases of securities If a security is purchased using settled funds there are no requirements sur rounding the timeframe of when the newly pur chased securities can be sold Click here for more information on unsettled funds and trade violations However if unsettled funds are used to purchase securities and the customer sells the securities prior to making full payment these newly pur chased securities may be subject to special requirements Securities purchased using unsettled funds should not be sold prior to the settlement of the funds used to purchase these securities generally 3 business days after the sale of the security which generated the funds If these securities are sold prior to settlement of the financing sale then additional funds will be required to be deposit
339. in the Watch List or on the tab name or click the Actions but ton and select Export 2 Select the save location and enter a name for the export file if you wish to change it from the default and click Save Adjust Font Settings 1 From the right click or Actions menu select Font 2 In the Font window you can adjust the size of the type in the Watch List tool as well as make the text bold and or italicized by clicking the B or I but tons respectively Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 364 TIP Check Apply to All Watch List tabs if you want the font settings to apply to all Watch List tabs Adjust Color Settings 1 From the right click or Actions menu select Colors 2 Inthe Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to the original col ors TIP Check Apply to all Watch List tabs at the bottom of the Colors window if you want the color settings to apply to all Watch List tabs Open a Watch List from StreetSmart Pro 1 Right click on a Watch List tab or click the Actions button and select Open StreetSmart Pro Stocklist 2 Alist of instructions will display for saving your Watch List in StreetSmart Pro Follow those instructions and then click OK to go to the Open dialogue 3 In the Open dialogue select the
340. inds of multi legged orders that can be placed as a package using this feature sell writes and unwinds are unique in that one leg of the trade is for an option the other is for an equity Because the option leg trades on an option exchange and the equity leg on a separate equity exchange the circumstances in which the Net price indication will be better than the prices for the separate legs combined will be uncommon Please note the indicative prices are not firm quotes and may not be available when an order is sent for execution Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 203 Sell Write In a Sell Write an investor sells a stock short and simultaneously writes puts against it If the puts expire out of the money the investor will have collected the premium of the option he is effectively generating income against his short position Additionally the investor will participate in any drop in the security down to the strike price of the option If the option expires in the money it will be exercised and the investor will have to buy back his shares at the option strike price On the upside the underlying security has to rise further than the collected premium before money is lost so the written put also provides a lim ited amount of upside protection This strategy is different from covered put writing only in that the investor does not have a short position in the se
341. ined chart view removes extra features to give you the largest price chart possible for the size of your Chart window Hiding Chart Elements In order to increase real estate within the Charts tool you can hide certain fea tures you may not require From the Settings drawer open the Settings menu Under Element Display Options you can hide Chart Keys the Level 1 Data Bar and or the History Control Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 298 Below you can see the difference in the chart size when you have all of those ele ments off versus when you have them on mouse over each image to enlarge Each element can be turned off individually so you can display as much or as little as you wish Elements Off Elements On Moving Study Panes Study panes generally display below the price chart but they can be moved to the top of the chart Press and hold Ctrl on your keyboard then click and drag the study above the price chart It will snap into place when you release the mouse button Hiding Study Panes Study panes can also be hidden by clicking the yellow arrow in the upper left corner of the study pane Note Clicking the X next to the study name will remove the study from the chart completely Below see a chart with the study open and then with it closed mouse over image to enlarge Just click the yellow arrow again to re open the
342. ing 1 Click Settings gt Settings in the main menu 2 Go to the Global tab and under Automate Behavior you can change the intervals at which the layout is saved next to Save layout interval TIP When using auto save the backup is saved to your computer and over writes the previous backup Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 23 Disabling Auto Save You can uncheck this feature to disable auto save in which case you will want to manually save a backup each time you make changes to your layouts or settings that you wish to keep Manual Backup If you have Auto Save turned off as described above back up your layouts and settings by going to the main menu and clicking File gt Save all Layouts and Settings As with auto save this method will save your backup to your com puter and overwrite the previous backup Saving Backup to External File or Schwab Server Another way to back up your files is via the Save As menu item in the main File menu Using this you can either save to the Schwab server or save locally to your hard drive or other storage device e Schwab Server Save up to 5 layouts to the Schwab Server When you click Save to Schwab Server a window displays showing you all your server saved layouts Assign your backup a name in the Layout Name field and click Save Delete saved layouts by clicking the X next to the lay out you wish to delete
343. ing model Vega Estimate of the change in option price pera 1 change in volatility of the underlying based on selected option pricing model Rho Estimate of the change in option price pera 1 change in interest rates based on selected option pricing model Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Option Chains Settings Option Chains settings found in the main menu under Settings or from the Actions drop down in the Option Chains display affect the entire application rather than individual tools Filters Include Weekly Options Check to display options that expire weekly in the Option Chains More on Non Standard Expiring Options Check to display options that expire quarterly in the Option Chains More on Non Standard Expiring Options Check to display adjusted options in the Calls amp Puts Option Chains More on Adjusted Options Include Quarterly Options Include Adjusted Options Calls amp Puts chain only Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 178 Trade amp Probability C
344. ing at 4 10 The net debit to the account would be 2 or 200 If XYZ is below 65 at June expiration the short expires worthless leaving the investor with a simple long position in the July 65 Calls that he can maintain simply sell or spread off with other July options The short term breakeven price cannot be calculated exactly The long term breakeven price after the June expiration is calculated by adding the net debit of the spread to the strike price of the long option Custom Multi Leg Option Orders Custom multi leg option orders allow you to manually input up to four legged options strategies not specifically supported in any of the other Options strategies Conditional Orders Conditional Orders Conditional Orders enable you to set up equity and option orders that will only fire if the conditions you specify are met They can be used to help you manage risk on open positions or be opportunistic in getting into positions when market conditions are favorable lt gt Get a demonstration and more information on Conditional Orders Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 244 A The conditions portion of a Conditional Order is set up the same way as Alerts and it s critical to have a strong understanding of setting up conditions Setting a Conditional Order incorrectly can have monetary implications if your order triggers incorrectly It is recommended that if you are
345. ing that a security would have to trade at or above a set level before the buy order would be activated For example an order could be entered at 35 5 for a security trad ing just below resistance at 35 By placing a buy stop order just above res istance the trader prefers to wait for that security to break resistance before going long This type of order can also be used as a stop loss for a short position Please note that there is no guarantee that execution will be at or near your stop price Buy to Close You close a short option position when you buy it back Buy to Open You open a long position when you buy a new option Buying Power This is the maximum dollar value of marginable securities that you can buy in your margin account without depositing additional equity Buying power is cal culated at the close of business each day and may fluctuate throughout the day AIBICIDIEIFIGIHIIIJIIKIL NIOTPIQIRISITIUIVIWIX ae N Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 392 Call Option An option contract that gives the holder the right but not the obligation to buy 100 shares of the underlying security at a fixed price before a specified expir ation date Call buyers hope the price of the underlying security will rise Call sellers hope the price will stay the same or go down Candlestick Chart A candlestick chart is similar to a bar chart The major difference is
346. ing the body Click here to read more about iron butterflies Iron Condor An iron condor is an options strategy which combines a call spread and a put spread it involves two call legs and two put legs all with the same expiration date and generally with consistent distances between the four strike prices involved The strategy gets its name from its 4 part structure involving the two outer strikes or wings and two inner strikes representing the body The two inner strikes are typically positioned around the current price of the under lying stock Click here to read more about iron condors Inside Day An Inside Day represents a day in which the total range of price is within the pre vious day s price range Inside Market The highest bid and lowest ask prices among all competing market makers ina NASDAQ security Invisible INV An order that is deemed Invisible or Subscriber only will not display on the NSDQ order book These orders will be matched if possible but an invisible order has less priority than other orders If an order with a restriction is entered before an unrestricted order at the same price the unrestricted order will execute first Invisible and Subscriber Only orders do not comply with the Dis play Alternative as described in the SEC Order Handling Rules They are bad for price discovery AIBICIDIEIFIGIHIIIITKILIMINIOTPIQIRISITIUIV WX lt lt N Copyright 2010 2015 Charles Schwab am
347. ion e For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window For more in depth descriptions of each column see Transactions Column Descriptions Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current Transactions tab or to a current and future Transactions tabs The default is to apply the settings only to the current tab but if you prefer the settings to apply to all select Apply to all Transactions tabs at the bottom of the Columns and Settings window before clicking OK Portfolio Performance The Portfolio Performance Reporting tool allows enabled users to create reports around portfolio account and asset class performance risk and return and more without having to leave StreetSmart Edge amp If your account is enabled for Portfolio Analysis all accounts over 100k are automatically enrolled you will see a Portfolio Performance tool in the Launch Tools menu You may display up to 8 Portfolio Performance tools at a time across all open layouts Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 106 You can find a more fully featured Portfolio Analysis tools under the Accounts tab on Schwab com but in StreetSmart Edge enabled clients are able to generate a variety of reports for on the fly analysis over a customizable period of time To gen
348. ions away from the center trend line the upper and lower channel lines will be Short Interest is now available for ETFs Short interest details will be displayed on the left side of the Manager details in the summery tab of the Research tool Including e of Shares Outstanding Shares Short e Shares Short Previous Month e Short Interest Ratio Days e Short Interest Rate 1 Month Ago Sorting by Multiple Columns within the Watch List The Watch List columns are now capable of using multiple columns to sort the cur rent view The selections will persist upon the next logon Auto Save On Sorting by multiple rows can be accomplished by holding down the Shift Key while you left click on the headers of the columns in which you want to sort Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 8 Cancel All Button You can specify whether the Cancel button within your Trading tools will cancel the last submitted equity order for the current symbol or cancel all equity orders for the current symbol To do so just go to Trade Settings by accessing the Trading Tab within the Set tings menu at the top of the platform or by right clicking in the Trade Ticket area and selecting Trade Ticket Settings Ratio is Now Available in the Level I Display The Ratio field will display the total number of shares available at the Inside Bid vs the Inside Ask To include this in your Level I display Ri
349. ions tab will display all the call and puts grouped by expiration If you have chosen a multi leg strategy all the eligible pairings based on the strategy you have selected will display 5 You can further filter the types of contracts or pairings displayed using the Option Chain Filters 6 Once you have found the contract or pairing you want to trade click on it to load it in the Trade Ticket 7 If applicable in the Action field choose whether you wish to create a Buy to Open Buy to Close Sell to Open or Sell to Close order If you have selected the order action button view you will choose your action at the point of submitting the order in lieu of Step 14 below 8 Adjust the quantity using the arrow buttons or entering the quantity manu ally Keyboard shortcuts o Up Down keys increase or decrease by 5 contracts o Left Right keys decrease or increase in increments of 1 o Shift Up Down keys to increase or decrease by 10 o Shift Left Right keys to increase or decrease by 1 TIP If you want to base your order quantity on a dollar amount rather than a number of contracts click the button above the Quantity field Enter the dol lar amount and click OK to show the number of contracts that amount will buy 9 If applicable choose an Order Type Available Order Types o Limit Order is executed at the price you specify Fill price is guaranteed but execution is not o Market Order is sent at the best price availabl
350. is a combination of a stop order and a limit order Stock and ETF stop limit orders are triggered by a trade at or through the specified stop price Stop Order A request to buy or sell at the market price but only when the security trades at or past a price specified Once the stock price moves to or through the stop price the pending stop order becomes a market order Stock and ETF stop orders are triggered by a trade at or through the specified stop price NOTE Schwab will not trigger your stop or stop limit orders based upon odd lot trans actions or any other transactions excluded from the consolidated last sale price cal culations Streaming Data Prices quotes market values and volumes in StreetSmart Edge are streaming real time consolidated market quotes For Mutual Funds the NAV is a daily cal culation occurring after market close This process may take 2 to 4 hours before a final NAV is made available to the public Strike Price or Exercise Price The price at which the owner of an option can purchase call or sell put the underlying security Subscriber Subscriber Only orders are identical to normal orders except that they are not included for display in the ISLD quote on NASDAQ They are visible to anyone with access to the Island book and have the same execution priority as unres tricted orders Invisible and Subscriber Only orders do not comply with the Dis play Alternative as described in the SEC Order Handling
351. is received by StreetS mart Edge When this occurs the bracket order fails When placing trades in these marketplace conditions setting looser bracket exits may still provide some protection but allow for the system to update properly and may prevent you from being stopped out of your position prematurely e Effects of corporate actions Order quantities on brackets will not adjust due to corporate actions including but not limited to stock splits stock dividends spin offs mergers and name changes Bracket Examples Combining a Profit Exit and Stop Loss Exit e Buy 100 shares Dell 25 00 e Profit Exit 10 2 5 pts and will trigger the order if the bid reaches 27 50 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 157 e Loss Exit 5 1 25 pts and will trigger the order if the bid drops to 23 75 Combining a Profit Exit and a Trailing Stop Exit e Buy 100 shares Dell 25 00 e Profit Exit 10 2 5 pts and will trigger order if the bid reaches 27 50 e Trailing Stop Exit 10 2 5 pts and will trigger order if the bid drops 2 5 points from any price below 27 50 or if the bid only drops from 25 00 the exit would trigger at 22 50 Combining a Stop Loss Exit and a Trailing Stop Exit e Buy 100 shares Dell 25 00 e Loss Exit 5 1 25 pts and will trigger order if the bid drops to 23 75 e Trailing Stop Exit 10 2 5 pts and will trigger or if the bid drops 2 5 points
352. is strong enough to continue fur ther Boxed Position Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 391 Where the security is held in the account both as a long and a short position These positions can be of equal or unequal quantities i e full or partial box Bull Trap A bull trap occurs when prices break above a significant level and generate a buy signal but suddenly reverse course and negate the buy signal thus trapping the bulls that acted on the signal with losses Butterfly A butterfly is a four legged options strategy which combines either two call spreads or two put spreads All four call or put legs have the same expiration date and generally also maintain consistent distances between the three strike prices involved The strategy gets its name from its 3 part structure involving the two outer strikes or wings and the middle strike representing the body Click here to read more about butterfly spreads Buy Purchase of a security Buy Signal A buy signal is a condition that suggests a time to buy a stock The signal will vary depending on the type of technical indicator used or it may be based ona non technical event such as a change in an analyst recommendations or the release of positive news Note It s unwise to base buy or sell decisions on just one indicator Buy Stop A buy stop is a buy order usually placed above the current price requir
353. ish this position for a credit or debit Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Straight Calls Straight Calls refers to the purchasing or selling of call options to open a position This strategy is also commonly referred to as Long or Short Calls Generally these two strategies are speculative in nature Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 196 Long Call A strategy consisting of the purchase of a Call option This strategy is generally used to speculate on the upward move of the underlying security or index For use when investor anticipates e Upward market direction security appreciation Financial Cha
354. ish to use in your risk management strategy for this position Profit Trailing Stop and or Stop Loss See Brackets Overview for descriptions and examples of each 5 Set up the parameters for the selected brackets while confirming that the Est Price is in line with your expectations The estimated price is based on either the designated Limit price for a Limit or Stop Limit order or the Inside bid or ask if your order is a Market or Stop order 6 Once the primary order receives a fill that fill s price is used to calculate the actual trigger price If multiple fills are received at different prices those prices are averaged together and the average fill price is used as a basis for the calculation Adding Brackets to Open Orders 1 In the Order Status tab right click on the position you are adding brackets to and select Add Bracket 2 Check the exits you wish to apply to the order and specify the values and units for each 3 Click Review Order then if the order is correct click Place Order The brackets now display as contingent orders in your Order Status tab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 154 Adding Brackets to Positions In the Positions tab right click on the position and select Add Bracket to sym bol or click on a Position tile fH anywhere in the software and click the Add Bracket link When you establish a bracket from the Order Status
355. isk mitigation Financial Characteristics e Maximum Loss vs Long Stock Current Stock Price Strike Price of Put Net Premiums e Maximum Loss vs Short Stock Strike Price of Call Net Cost of Collar Current Stock Price e Maximum Gain vs Long Stock Strike Price of Call Current Stock Price Net Premiums e Maximum Gain vs Short Stock Current Stock Price Strike Price of Put Net Premiums Objectives e Hedge an existing position for the short term that customer is willing to sell buy in at a set price e Risk mitigation in exchange for limited profit potential e Lower cost protection than purchase of protective put alone EXAMPLE Collar on long equity position An investor is long 100 shares of XYZ at 64 00 and wants to protect his Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 206 downside risk using a protective collar The important things are the percentage loss the customer is willing to assume and the point that the investor is willing to lose the stock through assignment of the short call position Let s assume that the investor is only willing to lose 5 to 10 percent on the downside and will only sell his stock ona 10 to 20 percent move upwards Let s assume that the XYZ 60 Puts are trading at 95 and the XYZ 75 Calls are trading at 95 The net effect of establishing a collar long stock long put short call using these two strikes is a net debit
356. ited to premium outlay as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the low strike call the maximum loss is no longer limited to the premium outlay EXAMPLE Bull Vertical Call Spread Currently XYZ trades at 25 share The investor believes the stock will appre ciate and wants to participate in the upward movement but does not want to simply buy calls because of the expense risk involved Instead the investor employs the spread strategy buying an in the money call strike 20 for 6 00 share and selling an out of the money call strike 30 for 1 00 share Using this strategy the maximum loss is the difference between the premiums paid and the premiums received 5 or 500 The maximum profit an investor can receive is the difference of the strike prices less the cost of the position The breakeven price of 25 is calculated by adding the net debit of the spread to the strike price of the long option Vertical Debit Spread Gain Loss at Expiration on w p pcs 3 5 2 wn a lt 16 18 20 22 24 26 28 30 32 STOCK PRICE in dollars As can be seen from the following chart and table the investor who buys the spread rather than simply investing in the call reduces his maximum loss by 1 6th breaks even at 25 instead of 26 and only loses out to the call buyer if the stock price rises above 31 at which point he would have a 100
357. ith the strategy The strategy s direction determines whether to load the position to Open add to position or the close Double clicking strategy rows Group by Option Strategy view Double click on the strategy row to load the All In One trade tool with the strategy to close Right click on the symbol row and select Load Trading Tool with sym bol or Load Symbol Hub with symbol Cost Basis Method The Cost Basis Method CBM at the top of the Positions tab indicates the lot selection method for your account along with a link to more information on Schwab com View Lot Level Details for a Position Lot details for positions that have been filled can be viewed by clicking on the arrow next to the position This will generate a drop down with details about the lots that compose the position See more on Lot Level Details Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 79 Export Positions You can export your Positions data to x s for Office XP and later versions csv or txt formats from the Actions menu or by right clicking within the Positions display Choose one of the export options explained below In the Export window that opens select the save location and enter a name for the export file if you wish to change it from the default and click Save e Export Positions Exports positions as they display at the top level of your Positions tab Does not display
358. itions tab it will completely displace the column that was there If it is already in the display the two columns will swap places e You can also arrange column order from the Columns and Settings window which is available when you right click on the tab name Check the columns you want to display in the Positions tab All chosen fields display in the Column Order display on the right Click a column name and use the Up Down buttons to move the column into a new position e For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window For more in depth descriptions of each column see Positions Column Descriptions Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current Positions tab or to a current and future Positions tabs The default is to apply the settings only to the current tab but if you prefer the settings to apply to all select Apply to all Positions tabs at the bottom of the Columns and Settings window before clicking OK Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 81 Positions Column Descriptions The Positions tab can track more than 70 different data fields for the securities in which you hold positions See Manage Positions Columns and Settings for dir ections on setting up your Positions tab display Options carry a high level of risk and a
359. ke changes to the different parameters that affect option pricing as calculated in that model in order to see how those changes would affect the prices and Greeks of the options in that chain Inputs Greek Model The Greek models available in other areas of the applic ation are also available here Choose between Black Scholes Barone Adesi Whaley and Cox Ross Rubenstein Price Chg Allows you to enter a change amount for the stock price used in the Greek model as a positive or negative number If you would like to see how the model predicts values if the stock is up 5 points enter 5 If you would like to see how the model reacts if the stock is down 5 points enter 5 Prices can be entered to two decimal places Days Past Enter the number of days to pass This value will apply to the whole chain so if you enter 3 days past the model will predict the value for each option as if 3 days have elapsed IV Chg Enter the amount of the Implied Volatility change in the stock If you want to see how the model reacts if the IV changes by 10 or 10 enter 10 or 10 in the IV Chg input Int This represents the risk free interest rate used in the cal culations and defaults to the current IRX CBOE 13 week treasury bill index The IRX value is divided by 10 to be expressed as an interest rate Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 184 Inputs Div Yield This
360. l Status Indicator FSI Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 25 Title Bar Features Hard to Borrow HTB Regulatory Circuit Breaker RCB Tool Link Icon Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC FSI Codes C Creations and or Redemptions suspended for Exchange traded product D Deficient Issuer failed to meet Exchange con tinued listing requirements E Delinquent Issuer missed regulatory filing deadline Q Bankrupt Issuer has filed for bankruptcy G Deficient and Bankrupt H Deficient and Delinquent J Delinquent and Bankrupt K Deficient Delinquent and Bankrupt Stocks that may be difficult to borrow for short ing purposes will have a Hard to Borrow indic ator under the name of the exchange If the stock you wish to short has this indicator con sider that it may be difficult to fill your order For questions on shortable share availability please contact Securities Lending at 1 800 355 2448 Stocks that have triggered the regulatory circuit breaker will be annotated with a RCB indicator in the Title Bar of a window National securities exchanges and FINRA have implemented a new limit up limit down mech anism FINRA Rule 6190 to combat extraordin ary market volatility The new regulation mandates that firms prevent trades in listed equity securities from occurring outside of a sp
361. l Selling a stock not owned in the hope that the price will go down The seller must indicate that the sale is a short sale when the order is entered This can only be done ina margin account If available the stock may be borrowed from a broker age firm for delivery to the buyer and must be bought back at a future date The firm reserves the right to call the security back at any time Short sales require the equity be deposited in a margin account Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account Margin trading increases your level of market risk For more inform ation please refer to your account agreement and the Margin Risk Disclosure Statement Short Sell Exempt A customer service representative may enter Short Sell Exempt orders on your behalf in certain limited circumstances The most common instance when this may occur is when liquidating the underlying security where the position is held as either an equity right warrant convertible or restricted stock In these cir cumstances the securities are not in an acceptable form for delivery on set tlement date Note that you must file an exercise for the right warrant Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 412 convertible or restricted stock before your order to liquidate the underlying secur ity can be marked as Short Sell Exempt Size Size repres
362. l 2 quote data for the contract e For multi leg orders see the contracts making up the legs of a multi leg pair ing by clicking on the arrow at the start of the row e See more about viewing and working with Option Chains Fill out Trade Ticket e Provide the order routing instructions in the Trade Ticket such as quantity order type limit price and more e Learn more about Placing Single leg Option Trades or Placing Multi leg Option Trades Option Margin Requirements See the requirements for buying and borrowing against securities in a Margin account based on Reg T FINRA and Schwab rules on Schwab com Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153
363. l funds this field reflects the number of shares you currently hold For fixed income securities this field reflects the face value of the securities For options this field reflects the number of option contracts Profit Loss including commissions expressed in dollars which can be positive or negative Profit Loss including commissions expressed as a percent which can be positive or neg ative Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 102 Realized P amp L Share or per contract Sector Today s P amp L Today s P amp L Total Proceeds Profit Loss per share or contract including commissions expressed in dollars which can be positive or negative The GICs sector to which the equity or under lying if an option belongs The amount that the position has gained or lost since either the current day s market open or the last market close multiplied by the number of shares or contracts This is cal culated by comparing the bid if long pos ition or ask if short position at the time the position was closed to the last closing price or the current day s open Same as Today s P amp L but expressed as a per cent This is calculated by dividing the Day P amp L by the Total P amp L If long the total dollar sum received for the liquidated shares or contracts including com missions If short the total dollar sum debited for the pu
364. l in the Symbol News tab the symbol will also load in the Trade tool and vice versa TIP Another way to accomplish this is to use the Symbol Hub tool which lets you see news charts and quotes all in one tool Streamlining the News tool To conserve space click the streamlined view icon which collapses the tab row and hides the Actions menu While in streamlined view access hidden tabs through the Tabs dropdown To switch back to standard view click the view icon again Adjust Font Settings 1 From the right click or Actions menu select Font 2 In the Font window you can adjust the font type and size as well as make the text bold and or italicized by clicking the B or I buttons respectively TIP Check Apply to all News instances if you want the font settings to apply to all News tools and tabs News Provider Settings You may enable or disable specific news providers from streaming news to your News tool To make changes to these settings right click in any of the news tabs or click the Actions drop down and select News Provider Settings This is a global setting so it is also available from the main Settings menu at the top of the software Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 381 Check or uncheck news providers as you wish and click Save to enable the changes and close the window Link J Breaking News MSE Nein keicia aich Legiefing com
365. l of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Buy Write amp Unwind Of the kinds of multi legged orders that can be placed as a package using this feature buy writes and unwinds are unique in that one leg of the trade is for an option the other is for an equity Because one leg trades on an option exchange and the equity leg on a separate equity exchange the circumstances in which the Net price indication will be better than the prices for the separate legs com bined will be uncommon Please note the indicative prices are not firm quotes and may not be available when an order is sent for execution Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 201 Buy Write In a Buy Write the individual purchases a stock and simultaneously writes calls against it If the call expires out of the money the investor will have collected the premium of the option he is effectively generating income against his long position Additionally the investor will participate in any rise in the security up to the strike price of the option If the option expires in the money it will be exer cised and the investor will have to sell his shares at t
366. lassifies the size of a company by Small Me dium Large indicates where the company falls within the broader classification i e M is a larger mid cap company Dividends paid by company over last 12 months in dollars per share Ratio of company s previous close to earnings over the last 12 months The higher the P E ratio the more the market is willing to pay for each dollar of annual earnings Earnings Per Share shows net income divided by the average number of shares outstanding for a company for the last 12 months Schwab Equity Rating evaluates individual stock and provides a 5 point rating scale A B C D F indicating Schwab s outlook on the potential per formance of the stock over the coming 12 months More on Schwab Equity Ratings Difference between the Bid and the Ask Exchange on which the security is listed Dividends paid by company over last 12 months as a of Last Trade Implied Volatility based on the option midpoint price and underlying price as calculated with selected option pricing model IV is a theoretical value in designed to rep Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 368 Greeks resent the forecasted volatility of the security or index as determined by the prices of multiple call and put options using the Black Scholes pri cing model Other variables usually include security price strike price risk free rate of retur
367. lendar Call Straddle Strangle Puts Calendar Put Collar Combo Conditional Orders Ratio Call Rollout Ratio Put Rollout Spread Butterfly Call Rollout Straddle Butterfly Put Custom Condor Call Condor Put Iron Butterfly Iron Condor Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 161 e Delete a Tab Click ona tab and click the x next to the strategy name to close it Add aLeg Quickly turn a stock or option order into a multi leg order using the Add A Leg button If you change the characteristics of an individual leg the tab updates the strategy and the option chain e As you make changes to the first leg of the strategy the other legs will be updated to stay within that strategy such as changing one leg of a Vertical Call spread to a Put will change the strategy to a Vertical Put e As you make changes within the ticket other strategies are recognized to allow you to quickly select the trade you want and locate that trade in the option chain e Remove a Leg Click the button for the leg you want to remove Regional Quotes Two tabs in the lower portion of the All in One tool are Option Chains the default option data display for all the trading tools and Regional Quotes Switch to the Regional Quotes tab to display the market depth for regional option exchanges and trades that occur in Time and Sales Title Bar and Level I Data The Title Bar will display the last
368. les Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 2 Unsettled Funds 20 0 00 0 c ccc cece cece cece c cece ccc ecececececececeececeececeseeeeeses 69 B lan es Bal ge coe rns losin sk ace oe bsiand a eola se dedenetedieacenitecakbe 72 POSICIONS ysis soccer Sg ce eee sec lat Bbw ce a Wess Aa AEE rin 77 XO 11 010 8 77 80 Position Columns and SettingS 0 0 cc cece ececececcccccececececececcececeeeceeees 80 Positions Column Descriptions 0 22 2020 cece cece cececececececcececececes 82 Trade Lot Details acccc c52 ss ceccestccaidpsc dca tisvntecsediddaicecsadeudsbcgietasnicdi destin sda 92 Cost Basis Method ooo to ccc c cose cece b Laces ab cencccsunmasncsabedindavemsisacetesoiediiataesesce 94 MAG Ws ec eee ee cosas ec sete seen a ace noesLeatecueucipaeey 96 Understanding P amp L Calculations 0 0 0 0 c cece eee cece ccc ec ecececeecececese 97 Realized Gains LOSSES 2 0 0 0 ce cece cece cc cece cece ec ecececececeececececeeseseseeeeees 99 Realized Gain LOSS coo oscn ccc sicesccaccscecde Seceecncdec lo Maiyete esecesacedcececeastenssweu 99 Realized Gain Loss Column Descriptions 0 0 0 2 c cece ececececececeeeeceeeeees 101 Transactions aa er ee i ea 103 Transactions een ee ene ee a eres eee e ae re ney eae Toe eee eer 103 Transactions Column Descriptions 0 2 0 0 0 2 cece cece cece ceccececeeees 104 Transactions Columns and SettingS 0 2 0 20 0
369. let ter hold the shift key down while typing the character Alternately you may follow the symbol with a PR and then the class designator For examples ABC PR or XYZ PRP e Class Shares Enter the 1 to 7 character symbol in uppercase letters or digits followed by a and then a single uppercase letter For example ABC B e Warrants Enter the 1 to 7 character symbol in uppercase letters or digits followed by a WS optionally followed by a and then a single uppercase letter For example ABC WS or ABC WS A e Futures Enter the Futures symbol in uppercase letters using the following format begin with a followed by the root symbol then month code and then year code The year code is displayed as one digit For example a March month code H 2015 year code 5 contract of AB would be entered as ABH5 TIP To make it easier to enter symbols particularly option symbols use the copy and paste feature when entering symbols Symbol Lookup In any symbol field in StreetSmart Edge if you do not know the symbol fora company you can type in the full or partial name of the company and get back a list of companies with similar names along with their symbols In the Symbol Lookup tool you can further narrow your search to just certain types of symbols such as Preferred Stocks ETFs and Indices You can even search the company descriptions amp The Symbol Lookup tool is available from the Launch Tools menu You
370. ll rights reserved Member SIPC 1015 6153 233 investor can receive is the difference of the strike prices less the cost of the pos ition or 4 in this example Call Ratio Back Spread This strategy requires the investor to purchase call options at a particular strike price and sell a fewer number of lower strike calls with the same underlying and expiration date Thanks to the extra number of long contracts it is possible to make greater profits than with a traditional vertical bull spread It is often opened at a small debit to slight credit This strategy is often used when one is very bullish And if the call ratio back spread is opened at a credit in addition to potential profits in a very bullish market a small profit may result if the market is bearish enough A call ratio back spread delivers a theoretical maximum profit when the stock appreciates to infinity and risk is limited This strategy often per forms most poorly in a moderately appreciating market For use when investor anticipates e Dramatically rising price of underlying security e Bearish market for price of underlying security if opened at a net credit e Increasing volatility Financial Characteristics e Maximum Loss S4 en number of short contracts net against cost credit of ASST EN spread e Maximum Gain Unlimited The maximum loss on a call ratio back spread position remains as long as and only as long as the integrity of the spread is mai
371. lls or puts strike range and more TIP To filter Adjusted options or Weekly and Quarterly expiring options see Option Chains Settings Following are descriptions of each available filter which will vary depending on the strategy you have selected Filter Fields Description Option Type Choose whether to display Calls Puts or both or Strategy choose from a variety of Spread and Combination multi leg option strategies The option chain will display contracts that match your choice of strategy See Option Strategies Overview for more on the types of multi leg option strategies available in StreetSmart Edge Expiration Filter Choose whether to view options expiring in the Nearest 60 Days specific expiration dates or All Expirations Show number of You can choose how many contracts or pairings dis contracts pairings play fora particular expiration date Click the drop down and select from AlI to 10 or fewer Intrinsic Value Select whether you want to view options that are At the Money Around the Money In the Money or Out of the Money Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 173 Filter Fields Description View Choose between e Basic view for which you can customize the column display by right clicking in the option chain and selecting Columns and Settings e Theoretical allows you to select a Greek model and make changes to the different para
372. lt of a cal culation e The P amp L variables are the difference between the cost to you and the current price As such you can only use the P amp L variables for secur ities in which you hold a position e Change From Open Close are the difference between the price of the security at the open or the close and the current price Operator The following operators are available depending on the variable e Increases to or above e Decreases to or below e Gains e Loses e Increases from open by e Decreases from open by e Increases from close by e Decreases from close by For the Time variable choose from e is the alert or order will trigger at the specified time e is earlier than alert or order will only trigger prior to this time e is later than alert or order will only trigger after this time Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 58 If Value Points or Shares Cost Trailing Stop Notes about the Gains and Loses operators e The Gains and Loses operators initialize from the moment the alert or conditional order is activated So if you create an alert or order that triggers when the Bid gains 1 point the alert or order uses the Bid at the moment you activate the it as the starting point e Alerts or conditional orders using the Gains or Loses operator will reinitialize or reset each day based on the inside bid ask a
373. lus tool can show the fol lowing data fields for your screener results Columns available in the other Screener Plus tabs are described in Screener Plus Column Descriptions See Screener Plus Columns and Settings for directions on setting up the columns in any Screener Plus tab Customizing Columns There are several ways to rearrange the columns displayed in the Sectors screener tabs e You can click the column headers and drag them to another spot in the tab e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the tab it will completely displace the column that was there If it is already in the display the two columns will swap places e You can also arrange column order from the Columns and Settings window which is available when you right click in the tab Check the columns you want to display in the tab All chosen fields display in the Column Order dis play on the right Click a column name and use the Up Down buttons to move the column into a new position e For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 315 Save as Watch List Only Sub Industry categories can be saved as watch lists Drill all the way down through the Sector an
374. m Trading Index TRIX TRIN Philadelphia Options Short Term Trading Index TRIXO CBOE Interest Rate 30 Year TYX Unchanged Issues AMEX UNCA Unchanged Issues AMEX Options UNCAO Unchanged Issues Boston Stock Exchange UNCB Unchanged Issues CBOE UNCCO Unchanged Issues Midwest UNCM Unchanged Issues NYSE UNCN Unchanged Issues Pacific Stock Exchange UNCP Unchanged Issues PSE Options UNCPO Unchanged Issues NASDAQ NMS Equities UNCQE Unchanged Issues NASDAQ Listed Intermarket UNCT Unchanged Issues NASDAQ OTC Bulletin Board UNCUE Unchanged Issues Philadelphia Stock Exchange UNCX Unchanged Issues Philadelphia Options UNCXO Philadelphia Utility Index Capital Weight UTY Up Volume AMEX UVOA Up Volume AMEX Options UVOAO Up Volume Boston Stock Exchange UVOB Up Volume CBOE UVOCO Up Volume NYSE UVOL Up Volume Midwest UVOM Up Volume Pacific Stock Exchange UVOP Up Volume PSE Options UVOPO Up Volume NASDAQ NMS Equities UVOQE Up Volume NASDAQ Listed Stocks UVOT Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 422 Up Volume NASDAQ OTC Bulletin Board UVOUE Up Volume Philadelphia Stock Exchange UVOX Up Volume Philadelphia Options UVOXO CBOE Volatility Index VIX Volume AMEX VOLA Volume AMEX Options VOLAO Volume Boston Stock Exchange VOLB Volume CBOE VOLCO Volume Midwest Stock Exchange VOLM Volume
375. m conditional orders before placing them You will have an opportunity to make changes to your order after reviewing it by clicking the Edit Order button in the review window Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 249 11 If you want to start over click Clear 12 Once the conditional order is submitted it will display in the Order Status tab of Account Details There you can edit the order until its conditions are met or once the order is triggered orders are displayed like any reg ular order with the potential to cancel or change the order before it is filled Alert amp Conditional Order Conditions Following are the conditions you can specify when creating an Alert or Condi tional Order on a stock or option symbol See more on Creating Alerts or Condi tional Orders Overview For a demonstration and more information on using Alerts or Conditional Orders visit the Training page If Stock ETF Call or Put Symbol Variable Click Stock ETF for conditions using an equity sym bol Select Call or Put when using an option symbol for your condition Enter the symbol you want to monitor Click the drop down arrow in the symbol field to select from the symbols in which you hold positions Avoid placing alerts or conditional orders on any stock that does not have bid ask quotes including Pink Sheet securities Such alerts will not fire TIP For
376. mar gin and cash accounts is also provided Margin Equity Requirements Margin Equity Equity Percent Day Trade Buying Power The dollar value of marginable securities in your margin account less the amount you owe Schwab plus any cash in your margin account This is the liquidation value of your margin account but does not include option positions segregated money market funds or cash not held in the margin account Margin Equity represents the total amount you invested in securities plus any excess cash minus funds borrowed on mar gin Your margin equity divided by the market value of your margin account This amount reflects the percentage of the current market value you would receive if you liquidated the margined securities paid off any margin debt and withdrew the funds Options cash account positions and segregated money market funds are not included when calculating the equity percentage This field will only applies if we identify you asa pattern day trader there are rules governing this designation For information about Day Trading Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 68 Balances Fields Descriptions Buying Power DTBP please consult your Schwab Trading Services Broker Month to Date Interest Owed The amount of margin interest you owe Schwab accrued from the beginning of the interest period through the date of
377. me figuring out how tools work and more time making tools work for you Get an overview of the software by going through the Getting Started Guide in the Help menu of your software You can also view the Quick Reference Guide which identifies the more com monly used tools features and icons and provides helpful tips for getting the most out of StreetSmart Edge For more training and education on StreetSmart Edge visit the Training topic 10 23 2015 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 7 New Features This release of StreetSmart Edge offers features and enhancements designed to improve the trading experience Options Top 10 Series has been added to the Screener Plus Tool The Options Top 10 Series query has been added to the default queries within the Screener Plus tool Including e Top Option Volume e TOp Option Gainers e Top Option Decliners Price Channels and Linear Regression have been added to Charts The Price Channel a chart study that consists of an upper trend line drawn on pivot highs a lower trend line drawn on pivot lows and a center line The Period variables will operate exactly like the traditional studies in terms of range and defaults The Regression Trend Line drawing feature has been enhanced and renamed to Linear Regression in both the draw drawer and in the chart s context menu You will now be able to set how many standard deviat
378. ment because its mar ket value is based in part upon the market value of the underlying stock Dilution Effect on earnings per share and book value per share from any increase in shares outstanding Direct Access Schwab s integrated set of trading tools designed to support direct access trad ing StreetSmart Edge Direct Access provides Market Depth information into a trading interface that gives you control over the routing targeting and timing of your order This platform is for experienced traders who are comfortable learning to use advanced trading technology to trade NASDAQ securities Direct Access Trading A trading method in which traders have control over the routing and targeting of their orders Direct access enables eligible clients to route orders for execution to the market centers of their choice Depending on the brokerage firm clients may be allowed to direct orders to a variety of ECNs market makers and exchanges In direct access trading there are no intermediaries who can Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 395 safeguard against poor trading decisions or serve as buffers between traders and sudden changes in market conditions Discretion Allows you to have a displayed price and a discretionary price You can place the order at the price you d like to receive with a discretion amount for the max imum minimum amount you re willing to pay Availabl
379. metimes considered overbought when the Stochastic Oscil lator exceeds 80 and when the Relative Strength Index RSI exceeds 70 It is important to keep in mind that overbought is not necessarily the same as being bearish It merely infers that the stock may have risen too far too fast and might be due for a pullback Oversold Oversold is a technical condition described as such by various indicators when prices are considered too low and may be ripe for a rally Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the Stochastic Oscillator and Relative Strength Index RSI A security is sometimes considered oversold when the Stochastic dips below 20 and when the Relative Strength Index RSI declines below 30 It is important to keep in mind that Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 407 oversold is not necessarily the same as being bullish It merely infers that the security may have fallen too far too fast and may be due for a reaction rally AIBICIDIEIFIGIHIIIITKIL NIOTPIQIRISITIUIVIWIX Pay Date The date the shares from a split or dividend are paid to the shareholders Percent Retracement The amount that price retreats following a high can be measured using a tech nique referred to as Percent Retracement This measures the percentage that prices retrace from the high to the low For example if a stock moves from a low of 50 to a
380. mns of data to display as well Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 174 as the order of the columns Access the Option Chain settings window by right clicking in the Option Chain and selecting Columns and Settings Option Greek Pricing Models Greeks indicate how fast an option price is changing relative to parameters such as time underlying stock price volatility etc e Pricing Method Select from Black Scholes Barone Adesi Whaley or Cox Ross Rubinstein e Interest Rate Defaults to the 13 Week Treasury Bill interest rate Index rate IRX or you can define the rate as you wish Order Position Indicators Choose whether to display an indicator showing you have either a Position ora Live Order for a contract in the option chain you are viewing For more inform ation on using the Order Position Indicators see the Option Chains topic Customizing Columns There are several ways to rearrange the columns displayed in Option Chains e You can click the column headers and drag them to another spot in the Option Chain columns e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the Option Chain columns it will completely displace the column that was there If it is already in the display the two columns will swap places e You can also
381. monly used trading strategies all of which can be customized e Or you can Save your favorite alert settings as a template and save a few steps the next time you use that alert e Note that you cannot use Conditional Order templates when setting up Alerts and vice versa lt For a demonstration and more information on using Alerts visit the Training page Using an Alert Template When creating an alert select the built in or saved template you wish to use from the Templates drop down at the top of the Create Alert window and click Load This will populate several alert fields and then you can fill in the rest and activate the alert Creating an Alert Template To create an alert template you can either create it from scratch or use one of the built in templates as a starting point Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 61 From scratch 1 Click Create Alert in the Alerts tab 2 Fillin the fields you want to have automatically populate when you load the template Variable is the only required field 3 In your template leave one or more fields blank that will likely change each time you use the alert like Symbol or Limit Price To leave a field blank select lt template gt from the bottom of the drop down For the symbol field just leave the field blank 4 Click Save as Template and your template will save You can either close the window or create anoth
382. mpanies that are the larger and generally more actively traded NASDAQ securities National Best Bid or Offer NBBO NBBO represents the bid and ask price that will display in Level I Negative Divergence When two or more indicators indexes or averages fail to show confirming trends Net Change The amount and direction of a security s price change since its previous close NSDQ In the context of bid or offer quotes in Level I or Market Depth NSDQ represents the NASDAQ Single Book liquidity NSDQ is also an order routing venue available in StreetSmart Edge which routes orders to the NASDAQ Single Book Odd Lot An amount of stock consisting of less than 100 shares Offer See Ask On Balance Volume OBV Introduced by Joe Granville in 1963 On Balance Volume OBV is a momentum indicator that relates volume to price change On Balance Volume shows if volume is flowing into or out of a security When the security closes higher than the previous close all of the day s volume is considered up volume When the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 406 security closes lower than the previous close all of the day s volume is con sidered down volume Open The price at which a security opened for trading on a given day Option A contract that gives the buyer the right but not the obligation to buy or sella particular asset the underlying security at a fix
383. mpose higher maintenance requirements on cer tain securities that are low priced thinly traded volatile or which pose heightened risk Special maintenance requirements are set at Schwab s discretion and are intended to reflect a stock s volatility and to ensure that your account maintains sufficient equity to cover large price movements Some stocks are so volatile or illiquid that they cannot be margined e Securities held in a cash account will dis play as or Not Marginable e N A will display if margin requirement data is unavailable e Maintenance requirements for multi leg options will display with the short leg s that has have the higher requirement s A list of maintenance requirements across secur ity types can be found here with maintenance requirements listed on the far right under the heading Schwab Maintenance Req The Margin Maintenance Requirement Lookup tool can be found here login may be required Maintenance Requirement Disclosure 1 Maintenance requirement data updates every 15 minutes or upon an event that changes your balances or positions such as a trade execution debit transaction etc 2 If you have a special maintenance require ment on your account that is greater than the equity specific requirement then the account level maintenance requirement will supersede the equity specific requirement 3 Stocks trading for less than 3 00 are not marginable Copyright 2010
384. multiple orders related to one conditional order click the arrow to display all orders NOTE Once a conditional order is triggered and an order is sub mitted for execution the order will display with the live orders Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 43 rather than with the conditional order The conditional order will con tinue to display but will become Inactive Partial Fills The Quantity Filled At column displays quantity and price information for your order s fills If there are multiple fills at different prices this column displays the average price with the total number of shares To view the individual fills select the order and click Order Detail in the upper right corner Short Sell Exempt Orders Short Sell Exempt orders will display in your Order Status tab A customer ser vice representative may enter Short Sell Exempt orders on your behalf in certain limited circumstances Export Order Status 1 You can Export your Order Status data to x s for Office XP and later ver sions csv or txt formats from the Actions menu or by right clicking within the Order Status display 2 Select the save location and enter a name for the export file if you wish to change it from the default and click Save Order Status Column Descriptions See Order Status Columns and Settings for directions on setting up your Order Status display Order Status
385. n Ask price of stock or input cost Call Bid Price e Put Calculation Bid price of stock or input cost Put Bid Price Due to the nature of Covered Call and Covered Put strategies there is a degree of hedging that takes place by selling the option against the stock position e Call Calculation Call Bid stock Ask or input cost 100 e Put Calculation Put Bid Stock bid or input cost 100 Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 183 Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Theoretical View The Theoretical View is a view of the Calls and Puts Option Chains It allows you to select a Greek model and ma
386. n Put Bid share quantity The Static ROI represented as a e Call Calculation Static ROI stock Ask or input cost Call Bid share quantity e Put Calculation Static ROI Stock Bid or input cost Put Bid share quantity Target Return on Investment shows in Dollars the return if the target price is reached at expiration The Target price can be any price the stock could reach and could Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 182 Outputs Target ROI Break Even Protection be used to see what the profit or loss would be at that tar get price Calculations e If stock would be assigned uses the Max Gain cal culations above e If stock is unchanged uses the Static ROI cal culation above e If stock price changes o Call Calculation Call Bid difference in stock Ask or input cost to target price o Put Calculation Put Bid difference in stock Bid or input cost to target price The Target Return on Investment expressed as a e Call Calculation Target ROI stock Ask or input cost Call Bid share quantity e Put Calculation Target ROI Stock Bid or input cost Put Bid share quantity The price the stock could reach at expiration where the profit or loss is O for the strategy based on the inputs Assumes a profitable transaction so when a profit is not possible shows e Call Calculatio
387. n and days to expiration If all other variables are equal the security with the highest volatility will generally have the highest option prices IV Ask Implied Volatility based on the option ask price and underlying price as calculated with selected option pricing model IV Bid Implied Volatility based on the option bid price and underlying price as calculated with selected option pricing model Delta Estimate of the change in option price per one point change in the underlying price based on the selected option pricing model Gamma Measures the change in delta for a change in the underlying security price based on the selected option pricing model Theta Estimate of the change in option price per one day passing based on selected option pricing model Vega Estimate of the change in option price pera 1 change in volatility of the underlying based on selected option pricing model Rho Estimate of the change in option price pera 1 change in interest rates based on selected option pricing model Options Strike Option strike price the price at which the owner of an option can purchase call or sell put the underlying security Expiration Date Actual date the option expires As most options Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 369 Options Days until Exp Intrinsic Value Time Value Open Int Underlying Symbol Underlyin
388. n click on a symbol in the list and use the Up Down buttons to move the symbol around in the list Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 340 You can also add symbols from the Reorder Symbols window e The symbol order you set in the Reorder Symbols window will affect the Custom Number column which determines the default list order Duplicate a Momentum List If you want to open another tab identical to an existing Momentum list right click on the tab at the top of the Momentum list and select Duplicate tab name Close a Momentum List Tab Click the X in the tab to close it or right click on the tab name select Close tab name Closing a tab removes it from your Momentum window but does not per manently delete it Delete permanently a Momentum List Delete one or more saved Momentum lists by selecting Manage Saved Momentum Lists from the right click menu and clicking the x next to the list you wish to delete Clear ALL symbols from a Momentum List 1 Right click on the tab of the Momentum list you want to clear and select Clear All Symbols 2 Confirm that you wish to permanently delete all symbols from this list Understanding the Momentum Tool Overview The Momentum tool gives a summary of the market participants recent activity in a stock i e uptick downtick refreshed quotes etc In the past one had to watch for a large number of red or
389. n and P amp L Calculations for Your Accounts Missing cost and P amp L information will be rep resented with an Incomplete cost and P amp L information will be represented with either the word Incomplete or an asterisk in the Cost column and P amp L columns If lot level data is not available for your account but cost data is displayed it will exclude com missions and transaction fees and will not reflect corporate actions including but not lim ited to stock splits stock dividends spin offs mergers and name changes If lot level information is available for your account the cost and resulting profit and loss data will include commissions and transaction fees but may also be incomplete because it may exclude manual adjustments and corporate actions including but not limited to stock dividends spin offs mergers and name changes Please note that cost and resulting Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 374 Positions Cost Share DRI Quantity Day Chg P amp L profit and loss data displayed in StreetSmart Edge is not the official record of your account Your statements and confirmations serve as your official records Quotes for mutual fund positions are based ona quote from the most recent closing price avail able For all other positions during market hours market value is derived from real time quotes After market
390. n click the button in the upper right corner of the Symbol Hub to shrink the Trade Ticket display and enlarge the Research display Also you may display up to 6 Research tools across all open layouts at a time All data updates daily and may not exactly match Schwab com due to dif ferences in timing and data providers Past performance is no indication or guar antee of future results Research Summary Research fundamentals on a symbol by opening the Research tool under Launch Tools or by clicking the Research button Research Q in the Symbol Hub Adjust Color Settings 1 From the right click or Actions menu select Colors 2 Inthe Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to the original col ors Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 351 TIP Check Apply to all Research tabs at the bottom of the Colors window if you want the color settings to apply to all Research tabs Below is the data found in the Summary tab of the Research tool in addition to the Business Summary and Executives lt gt Get a demonstration and more information on the Research tool OVERVIEW Market Cap Market value of all of a company s outstanding shares For ETFs the calculation uses the long position holdings of the underlying st
391. n on applying bracket exits to your order Brackets can also be added from the order verification window by clicking the Set Exit Strategy button prior to placing the order To sell your entire position check the Close All box The quantity will default to the shares you have available to sell When checked the quantity will become shaded You must use Close All if you want to close out a pos ition with fractional shares See Close All for more information Click Review Order if you have not turned off order verification If the order settings are correct click Place Order To edit the order click Edit Order To start over completely click Do Not Place Trading Hot Keys If you frequently use the same order settings when placing equity trades hot keys may help you save time when entering orders With hot keys you can assign order settings everything but the equity symbol to a key or combination of keys for example F5 or Ctrl B In addition to placing orders you can also use hot keys to e Close open positions You can create a hot key that will Close a specified number of shares in an open position or one that will Close All your open positions in the security e Cancel open orders For the Action choose Cancel Oldest to create a hot key that will cancel the oldest open order for the security or Cancel Most Recent to cancel the most recent open order You can also create a Copyright 2010 2015 Charles Schwab am
392. n order This will give you a chance to review the details of your order before you send it as well as dis playing any notifications or errors resulting from the order settings You may also choose to add a Bracket to your order by clicking on the Set Exit Strategy button Please note that there is a 10 minute time limit to place your order once the Order Verification window has been opened If the Order Verification window has been open for longer than 10 minutes and you wish to place an order close the window and place a new order IMPORTANT If you turn off Order Verification your orders are immediately submitted without a verification screen so you will not have the opportunity to review the terms of your order prior to entry and will not see warn ing or informational messages related to your orders By unchecking this feature you accept the associated risks of trading without an Order Verification window and mes saging Order Action You can specify what the software does to the Action selec Selection tion after you ve placed an order or entered a new symbol You can choose to Clear Action Maintain Action or Set Action to Close if the symbol has an open position Stock ETF Calls Puts Conditional Orders 2 Actions v is g COED CEND Se Sta oe Short Special Cond ee Or you can choose to view the Action selections as buttons by choosing Use Trade ticket with Order
393. n use wav files of your own TIP When choosing a file from the Browse dia log you can listen to it before choosing it by right clicking on the file and selecting Play Otherwise you can select the file click Open and press the P button to hear the sound Determine settings related to your account from the Account tab in the main Set tings menu Profit and Loss Calculate Position Day Change P amp L using Select whether to use the Close or Open price to calculate P amp L change for the day Update Equities P amp L during When checked allows you to choose Last After Hours Trade Price or Bid Ask Price to cal culate after hours P amp L on equities When unchecked P amp L calculations will use the closing bid ask to calculate P amp L so the cal culation will not update after hours Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 34 Trading Settings Access the Trading Settings by going to File gt Settings in the main menu or by right clicking in the Trade Ticket area of the Stocks amp ETFs tab and selecting Trade Ticket Settings See more on the Notifications Equity Hot Keys Order Quantity and Condi tional Orders Alerts settings tabs found in the Trading tab Here you can control order verification commissions on estimates and more Trade Settings Order Veri Check to enable order verification before placing or can fication celing a
394. n which you have an open position into the Trade tool the Quantity field will show the number of shares or contracts you hold Symbol Default Quantity Add default share or contract quantities for up to 100 securities When you load any of these securities in a trade ticket the specified default quantity will pop ulate the Quantity field automatically e Add or Update a symbol by entering the stock symbol or underlying sym bol for options number of shares or contracts and clicking Add Update e Delete a symbol by clicking the X at the end of the row for that security Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 133 Extended Hours Trading Extended Hours Trading is made possible by market centers that match bids to offers electronically Trading Sessions Schwab s Extended Hours Trading offering has two components the Pre Market and the After Hours sessions Both sessions are independent from the Standard Market Session e Pre Market Session Orders can be entered from 8 05 p m on the pre vious trading day to 9 25 a m ET but trades are not eligible for execution until the session officially opens for trading at 8 00 a m ET e After Hours Session Orders can be entered from 4 05 p m to 8 00 p m ET but trades are not eligible for execution until the session officially opens for trading at 4 15 p m ET e Separate trading sessions do not apply to Direct Access order
395. nes Displays the vertical grid lines cor responding to the time scale at the bottom of the chart e Show Price Lines Displays the horizontal grid lines cor responding to the price scale e Show Chart Keys Displays the name or symbol of any over lays studies or drawn objects on your chart Chart keys dis play across the top of the chart and are a quick way to edit hide or delete the enhancements you make to your charts e Show Level 1 Data Bar Displays the Date Time Open High Low Close and Volume for the point on the chart your mouse is pointing to e Show Last Trade Label Displays last trade in the price scale in a highlighted tag e Show History Control Displays the historical price timeline below the chart e Streamlined View If selected all features except the basic chart are hidden and the Settings drawer is pushed all the way closed offering the maximum chart viewing area possible If Custom View is selected within the Settings you may select chart features a la carte customizing your streamlined chart display to show you everything you want to see and noth Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 276 ing you don t TIP You can also toggle between regular and stream lined view by clicking the g icon in the upper right corner of the Chart tool Activity Display Options e Notes If enabled any Notes about the symbol being viewed in the C
396. nfirmation of a diver gence may be a subsequent moving average crossover Not to be confused with a trade confirmation which verifies that a trade order has been executed Congestion Area At a minimum a series of trading days in which there is no or little progress in price Correction After an advance a decline that does not penetrate the low from which the advance began is known as a correction A correction also referred to as a retracement usually retraces 1 3 to 2 3 of the previous advance Crossed Market When the bid is higher than the lowest current offer or vice versa Crossover A crossover is a place on a graph where two lines intersect Depending on what each line represents a crossover may indicate a buy or sell signal One common method of interpreting a moving average is to compare its relationship to the price itself Changes in a market s price trend are not necessarily identified by a reversal in the direction of the moving average line but by the price line crossing through the moving average line It may be considered bearish when price crosses below a moving average and bullish when price crosses above it Mul tiple moving average crossovers or double crossovers can also be employed through the use of two moving average lines one of a shorter time span and the other of a longer time span It may be considered bearish when the shorter moving average crosses below the longer moving average and bullish when
397. ng curve allowing traders to focus on trading By focusing on the trader s work flow StreetSmart Edge provides a robust trading experience that blends sophistication with ease of use To access StreetSmart Edge log on to www schwab com Click Trade and then click Trading Tools You will be automatically dir ected to the page where you can download Edge by clicking on the Download button under the Edge graphic Yes you can keep track of your gains and losses and monitor you balances real time Additionally you will have access to streaming quotes and real time charting StreetSmart Edge gives you the ability to place the same types of orders that StreetS mart Pro does You can place Market Limit Stop Limit Trailing Stop and Trailing Stop Limit orders You also have the ability to adda Bracket to your primary order or filled order Additionally you can place various types of Option orders depending on your Option approval level For more information about order types click here StreetSmart Edge offers Options Participant Top of Book quotes and Options charting Addi tionally you are able to customize the quote function to include Option Greeks Midpoint and more Trade basic and multi leg Options Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 10 What type of charting capabilities does StreetSmart Edge offer What is chart pattern recognition
398. nge Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 113 Stock amp ETFs Tab Features Time amp Sales News Cancel Last Order Save for Later Shows every trade being reported through NASDAQ and some ECN book trades as well as the quantity of the trade parentheses around the quantity indicates an exact amount of shares usually an odd lot and the time of the trade Time amp Sales is color coded e Green Prints at the inside Ask e Red Prints at the inside Bid e Gray Prints in between the inside Bid Ask e Yellow Prints above the inside Ask e Purple Prints below the inside Bid e Gray Highlight Inside quote change Customize The Market Depth and Time amp Sales display is customizable To learn more see Cus tomizing the Market Depth Display If you expand your Trade tool window you will reveal the Breaking News panel of the Stocks amp ETFs tab Click on a story to display it in the pre view pane or double click on the story to open it in a separate window e You can also right click and select Open Story to open it ina separate window e To hide the preview pane and see only the Breaking News headlines right click and select Hide Preview TIP News is also available in its own tool with even more features Click Open Tools gt News to view the News tool Will attempt to cancel the most recent open order for the stock loaded in
399. nge this 1 Go to Settings in your main menu then to the Trading tab and choosing the Notifications sub tab Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 60 You can also change the default notification from the Alert or Conditional Order creation window Click Set Trigger Action and click Edit Default 2 Choose any orall of Load Trade tool with symbol Beep or add a Cus tom Sound To add the custom sound click Browse to find the sound file on your computer Edge comes with several choices Click on the file and click Open to load the sound 3 Once you ve checked all the notification selections you want to apply to all your alerts or conditional orders click Save One Time Notification If you want to stray from your default notification settings occasionally you can do that too 1 When you are setting up the alert choose Set Trigger Actions 2 Chose One Time Notification and select the notifications you want to receive for this particular alert or conditional order 3 Click OK Alert Templates The Alerts feature found in the Account Details tool is where you can tell the software to notify you if certain market conditions you specify are met To make it easier to set up alerts especially if you tend to use the same rules or conditions when placing alerts StreetSmart Edge provides Alert Templates e The software comes with several standard templates for com
400. ning resources available on Schwab com Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 31 HELP StreetSmart View all the disclosures related to your use of StreetS Edge Dis mart Edge closures Update Avail When this menu item is active this indicates an able update to your software is available Open this at your convenience to update your software A list of new features in the update are available in the Upgrade window This window shows basic information about your com puter such as the operating system processor speed memory and hard drive space System Inform ation About StreetS mart Edge See which version of the software you have installed as well as access the End User License Agreement Copyright Notice and Trademark Notice for the soft ware Global Settings Global settings affect the entire application rather than individual tools Cus tomize a variety of features in the General Settings sub tab and use the Display Themes sub tab coming soon to change the overall look of your software TIP You can set up and manage nicknames for your accounts by going to Schwab com inthe Main Menu and selecting Manage Account Nicknames General Settings If checked auto save is enabled and your lay outs and settings will automatically back up to your computer at a regular frequency The default is every 5 minutes
401. nizable by StreetSmart Edge Below are instructions for entering valid symbols for the types of data that may be available in StreetS mart Edge e Stock Enter the 1 to 5 character stock ticker symbol in uppercase letters For example ABCD e Option Enter the Option symbol in uppercase letters using the following format the underlying security or index symbol followed by the expiration date then strike price then a C or P for Call or Put For example XYZ MM DD YYYY 00 00 C e Indices Enter the index symbol preceded by a For example ABC Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 141 e Mutual Fund Enter the Mutual Fund symbol using five uppercase letters or digits ending in X For example ABCDX e Preferred Stock Enter the Preferred Stock symbol by following the regular stock symbol with lower case p and optionally a single uppercase letter as a Class indicator For example ABp or YZpP To produce a lower case let ter hold the shift key down while typing the character Alternately you may follow the symbol with a PR and then the class designator For examples ABC PR or XYZ PRP e Class Shares Enter the 1 to 7 character symbol in uppercase letters or digits followed by a and then a single uppercase letter For example ABC B e Warrants Enter the 1 to 7 character symbol in uppercase letters or digits followed by a WS optionally follow
402. not to complete an order in under three minutes depending upon the symbol market venue order type and conditions Commissions will be based upon the price and number of shares filled on each order To change the Auto Cancel timeout setting go to the Trading tab under Set tings in the main menu Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 144 ARCA General Information ARCA Ord The order will try to find a match in the ARCA NYSE Arca Book If a better price is available in the book then it will target that price If no match is made the order will post to the ARCA Book The best bid and ask posting 100 or more shares will post in the Market Depth if it does not cross or lock the market A market order is available by selecting Market in the drop down menu once ARCA is chosen as the order route The default is a limit order Minimum decimal increment in order price 001 Day order available if Auto Cancel time is set to 0 Default cancellation time 180 seconds Trading Hours 7 00 a m to 8 00 p m ET for Limit orders Trading Hours 9 30 a m to 4 00 p m ET for Market orders All ARCA limit orders will be canceled after the close at 8 00 p m ET Order Routing er Types Description Limit e Marketable Limit Orders Matched with the ARCA book or if no match posted to the ARCA book The order price may be improved if a better price appears e Non Marketa
403. not uncommon for erroneous trade reports to come through the Time amp Sales dis play with prices away from of the market You will be responsible for any orders that are executed even if they are based upon inac curate information To minimize possible issues consider using the Bid or Ask variable when sending conditional orders This is not a guarantee that orders will not be sent based on bad prints and will not completely remove the risk of alerts firing based on inaccurate data Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 56 e Change from Open You can set up an alert or conditional order to trigger based on the dif ference between the current price of a stock and the price at the open Note that the change amount itself is used as a basis for the calculation so that if the current Change from Open is 10 and you want an alert or order to trigger when the Change from Open is 30 you would need to set an alert or order that triggers when it Increases to 30 e Change from Close You can set up an alert or conditional order to trigger based on the dif ference between the current price of a stock and the previous closing price Note that the change amount itself is used as a basis for the calculation so that if the Change from Close is 10 cents for example and you want an alert or order to trigger when the Change from Close is 30 cents it would need to se
404. ns disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Option Chains Option Chains list the strike prices expiration dates and other option data for the available calls and puts for an underlying security In StreetSmart Edge you choose the call or put you want to trade from the Option Chain display in the All in One tool Trade tool or Symbol Hub Further if you are placing a multi leg option trade the option chain will show the pairings of calls and puts appropriate for the multi leg strategy you have selec ted For more information on the strategies available for trading in StreetSmart Edge see Option Strategies Overview Expanded Display e For simple calls and puts click the arrow at the beginning of each row to display the available contracts for a particular expiration date e For more details about each option click the arrow next to the contract to display the contract specifications along with options Level I and Par ticipant Top of Book data for the contract e When you have selected a multi leg strategy to trade click the arrow at the beginning of each row to display the legs in each set Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 171 Option Chain Filters At the top of the option chain display there are several filters such as strike range or number to show that can help you further whittle down to the t
405. ns in a 10 1 ratio For example 10 mini option contracts can be paired with 100 shares of stock or one standard option contract e Mini and standard option order entry Investors can t combine order entry for mini and standard options Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Option Strategies Option Strategies Overview In addition to straight calls and puts below is an overview of the variety of option trading strategies available in the All in One tool and in the Options tab of the Trade tool and Symbol Hub Click on the links for descriptions of each type of option order for a deeper explanation Strategy Sub For use when Financial Characteristics Strategy view of stock is Max Loss Max Gain Chan Straight Long Bullish Net Unlimited Loss Calls Premium Paid Bearish Unlimited Net Premium Received Net Strike Loss Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 190 Long Bearish Straight Strategy Sub For use when Financial Characteristics
406. nt Options may be available in a future release e Gridlines Check to show gridlines on table based data like your Account Details tabs e Grayscale For best results with black and white printers check Greyscale e Print Background colors amp images Check to print background colors and or images Be aware that if a chart has a black background and this option is checked the chart will print exactly as it shows on the screen and may take more time to print and use a lot of ink Margin amp Header Footer Margins Adjust the margins for each edge of the printed page TIP Reduce the margins to create more print able space on the page though reducing the mar gins too much can result in part of the image being cut off Headers amp Footers Print Preview Print Page Setup Close Headers and footers help you identify the origin of your print outs by adding data such as Tab name Account Number Date amp Time etc You can create custom headers and footers as well Select header and footer data from the drop down menus The top row will display at the top of each printed page and the bottom row will display at the bottom Click Print to send the displayed page s to your default printer To select a different printer use the main Print option in the table below Click Page Setup to open the page setup dialog as described in the table above Click Close to shut down the Print P
407. nt is the difference between the bid price of the option being sold bid and the ask price of the option being bought ask Buy Write Sell Write When opening a Buy Write select the price from the Ask Buy Stock Sell Call side and when closing Unwind select from the Bid Sell Stock Buy Call side The oppos ite is true for a Sell Write Click in the Bid Short Stock Sell Put column to open a Sell Write and the Ask Buy Stock Buy Put column to Unwind Rollout Select the option position to sell in the Position to Close drop down and then click the contract you want to roll forward to Straddle The net is the total of the two bid prices of the options being sold bid or the total of the two ask prices of the options being bought ask Custom You can either enter the legs of the order in the order entry fields at the top of the trade ticket or you can right click ona contract in the option chain and select the leg of the order ticket into which it should be loaded 7 Confirm that the Action is correct for each leg of the trade e Buy to open opening a long position by buying the option e Buy to close closing an existing short position by buying back the option Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 169 e Sell to open opening a short position by selling writing the option e Sell to close closing an existing long position by selling the option 8 Adjust
408. ntained If the investor trades out of or exercises the low strike call the maximum loss may be larger or unlim ited Objective e Speculative gain EXAMPLE Call Ratio Back Spread Currently XYZ trades at 23 share The investor believes the stock will either appreciate dramatically or depreciate and wants to profit Limiting risk is also a goal So the investor employs a call ratio back spread strategy of buying two out of the money calls strike 25 for 1 50 per 3 00 and selling one same expiration month in the money call strike 20 at 4 00 for a net credit of 1 00 Using this strategy the maximum loss is 4 00 The investor will profit if the stock is either above 29 00 or below 21 at expiration The maximum profit an investor can receive in this example is unlimited XYZ at infinity or 1 XYZ at or below 20 00 the maximum loss is 4 XYZ at 25 00 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 234 Put Ratio Back Spread This strategy requires the investor to purchase put options at a particular strike price and sell a fewer number of higher strike puts with the same underlying and expiration date Thanks to the extra number of long contracts it is possible to make greater profits than with a traditional vertical bear spread It is often opened at a small debit to slight credit This strategy is often used when one is very bearish And if the put ratio back spr
409. ntum Settings Momentum Columns Adds numbers to each row which enable you to create a customizable symbol order for the lists you create Numerical Columns Activity Rate Signal Displays the numerical value for the activity rate sig nals Net Value Displays the actual sum computed for net value Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 344 Momentum Columns Sum Score The single strength value from the Score calculation Graphical Columns Activity Rate Shows the amount of market participant activity sig nals that has occurred over the time frame selected It is always a positive number so the graph will always be green Net Value Graphically displays the sum of signals both positive and negative printed for the time frame selected Score Shows a single strength value of price increasing green or price decreasing red activity derived from a formula of Activity Rate and Net Value ETF Screener The Exchange Traded Fund ETF Screener is a powerful tool found on Schwab com but now integrated into StreetSmart Edge which you can use to filter a universe of over 600 ETFs down to just a handful based on a multitude of criteria The ETF Screener has three main components e Predefined screens These basic screens offer a starting point for those who want some pre defined ideas Each screen can be modified or run exactly as
410. o benefit from the upward movement The investor shorts a Straight Put option strike 30 for 6 00 share 1 contract 100 The maximum loss is the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 200 difference between the strike of the option and the premium received through the sale of the put 30 6 24 If the stock closes at 19 on expiration there would be a 5 loss 30 19 6 5 loss The maximum profit an investor can receive is the credit received when selling the option For example if the same XYZ 30 strike put option sold for 6 and the stock closed over 30 the option would expire worthless and the investor could pocket the entire 6 The break even point for the strategy occurs when the price of XYZ is at 24 Short Puts Gain Loss at Expiration v s g i 5 s 0 ooo g 2 5 lt o 15 20 25 30 35 40 45 STOCK PRICE in dollars Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high leve
411. o tabs Order Messages Tab e Displays the current day s vital time sensitive messages related to order status alerts activity system or market center outages and more Mes sages that could affect your trading or ability to trade will display in the Order Message tab e Displays message time Eastern account number and message text Mes sages are sorted by date and time e Choose whether to display messages for the current day or only the current login session See Session Display below for details Message Center e Displays urgent and non urgent messages from Schwab regarding holiday closures policy changes and other matters related to the account Also notifies clients about Schwab products and services e Messages in this tab display the date they were sent subject and the expir ation date upon which the message will stop being displayed e Messages that do not need to be retained can be removed by clicking the message and then Dismiss at the bottom of the Message Center New Messages A highlighted message icon at the top of your screen indicates you have unread messages in the Messages tool When you have unread messages in the Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 48 Message Center tab the number of unread messages displays next to the tab name Reading Messages In the Message Center open a message by clicking on it to display it in the read
412. ocks to calculate market cap as opposed to the more traditional shares outstanding x current price calculation Market Cap Class Classifies the size of a company by Small Me dium Large indicates where the company falls within the broader classification i e M is a larger mid cap company Enterprise Value Measure of the market value of a company that takes into consideration all security hold ers rather than just common equity Beta Stock price volatility relative to the S amp P 500 Shares Outstanding Number of shares of stock currently held by investors Total Float Total number of share available for public trad ing Held by Institutions Percent of shares held by institutional investors Employee Count Number of employees SECTOR INDUSTRY Sector GICS Global Industry Classification Stand ard Sector classification Sector is the most broad category used Sectors are composed of Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 352 SECTOR INDUSTRY Industry Sub Industry EARNINGS Earnings Per Share Price Earnings Ratio Forward P E DETAILS Today s Open Previous Close Day s Range 52 Week Range VWAP Industries which are composed of Sub Indus tries GICS Global Industry Classification Standard Industry classification Industry is the middle category used Sectors are composed of Indus tries which are composed of
413. of long contracts net against cost credit of establishing spread Objective e Speculative gain EXAMPLE Call Ratio Spread Currently XYZ trades at 23 share The investor believes the stock will mildly appreciate and wants to participate in the upward movement but at a discount to the cost of simply buying calls Instead the investor employs a call ratio spread strategy of buying one in the money call strike 20 for 4 00 and selling two same expiration month out of the money calls strike 25 at 1 00 per fora Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 232 net debit of 2 00 Using this strategy the maximum loss is unlimited if the stock price is above 25 or the maximum loss is 2 if the stock price is at or below 20 The investor will profit if the stock is between 22 and 28 at expiration The maximum profit an investor can receive is the difference of the strike prices less the cost of the position or 3 in this example Bear Put Ratio Spread This strategy requires the investor to purchase put options at a particular strike price and sell a greater number of lower strike puts with the same underlying and expiration date Thanks to the extra short puts it is often opened at a small debit to slight credit This strategy is often used when one is slightly bearish A bear put ratio spread delivers maximum profit when the stock trades at the lower strike price at e
414. of trade up until the settlement date Note that lots established today are not eligible for assignment Either check All to assign an entire lot to be closed or enter a quant ity The Open Date and Hold Period columns can help you figure out the potential tax ramifications of closing a par ticular lot Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 95 TIP IRS regulations allow you to change the cost basis method for your order up to midnight ET on settlement date The change will update the cost basis method for all unsettled portions of your equity orders including both open and filled transactions Account level Cost Basis Method CBM Set an Account level CBM via Schwab com by going to Service gt Account Set tings gt Cost Basis Method and click the Change link You can also link to the site by clicking the CBM method link at the top of the Positions tab Changes are effective the following day You can change CBM for individual orders on Schwab com as well by going to Trade gt Order Status and clicking the View Edit link of the order you want to change then click Change Notice you must log on to your account on Schwab com to make these changes Wash Sales A Wash Sale occurs when you take a loss upon closing a position within 30 days before or after the sale date of opening a position in the same or substantially identical security The purpose of this feder
415. ol or for a con stant at a glance view you can display certain balance details across the top of your screen in the Balances Bar lt gt Get a demonstration and more information on using the Balances tab Margin Accounts If you have a margin account the Balances tab includes a Margin Buying Power figure Margin Calls If you receive a margin call the value of the call will display in red at the top of the StreetSmart Edge screen on the Balances Bar below your account number Export Balances 1 You can Export your Balances data to x s for Office XP and later ver sions csv or txt formats from the Actions menu or by right clicking within the Balances display 2 Select the save location and enter a name for the export file if you wish to change it from the default and click Save Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 64 Balances Fields Total Account Value Today s Change Funds Available Available to Trade Available to With draw Descriptions The sum of your securities unswept or intra day cash money market funds bank deposit accounts and net credit or debit balances in your account Indicates the change in account value from the previous trading day s close This includes your trading activity as well as deposits and with drawals Using cash The maximum amount of money in your account that you can use to trade without
416. olldown when the strike price is different Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 205 Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Collars A collar allows an investor to help hedge a long short underlying security pos ition by buying selling a put with a strike price beneath the current stock price and selling buying a call with a strike above it Both options have the same expiration date The user accepts a cap on his upside downside gains for a floor on his downside upside losses For use when investor anticipates e Volatile market conditions e Any missed opportunities are perceived to be worth the r
417. om Thomson Reuters and Acquire Media right to your desktop Scan the headlines read the full story and set up personal news watches You may have up to 3 News tools open across all open layouts at one time lt gt Get a demonstration and more information on the News tool Get the news you want the way you want it e Breaking News Get all breaking news or apply a keyword filter to get breaking news on selected subjects or companies e Symbol News See all news on a symbol or news code for the period of time you specify e News Watch Create a list of stocks and or news codes to display news for or have the News tool display news for one of your Watch Lists or your positions e Briefing com Access a variety of commentary from Briefing com Choose from a drop down menu that includes hourly updates on stocks in play daily and intraday news briefs and sector analysis Preview Pane Headlines display in the upper portion of the News tool and clicking on a head line will open the story in the Preview pane at the bottom e You can Hide or Show Preview by right clicking in the tool or clicking on the Actions drop down and selecting your preference Clicking the X in the upper right corner of the preview pane will close it as well e You can also resize the Preview pane by dragging the dividing bar between the two panes up or down Full Story Display e To open the full story in a separate window right click on the headline and
418. on as it is 30 days away which is right in line with his timing forecast Strikes Symbol LastTrade Change Bid Ask Delta Gamma Theta y Calls Aug 16 2014 30 days gt 32 00 08 16 2014 32 00 C 2 65 0 24 2 46 2 66 0 8548 0 0943 0 0076 gt 33 00 08 16 2014 33 00 C 1 70 0 41 1 70 1 78 0 7420 0 1417 0 0109 f gt 34 00 08 16 2014 34 00 C 1 05 0 24 1 04 1 07 0 5814 0 1810 0 0130 gt 35 00 08 16 2014 35 00 C 0 53 0 18 0 55 0 57 0 3940 0 1851 0 0126 gt 36 00 08 16 2014 36 00 C 0 27 0 07 0 26 0 28 0 2305 0 1466 0 0101 gt 37 00 08 16 2014 37 00 C 0 14 0 03 0 11 0 14 0 1224 0 0956 0 0070 v Puts Aug 16 2014 30 days gt 32 00 08 16 2014 32 00 P 0 12 0 02 0 11 0 14 0 1168 0 0922 0 0072 gt 33 00 08 16 2014 33 00 P 0 30 0 09 0 28 0 30 0 2355 0 1507 0 0109 gt 34 00 08 16 2014 34 00 P 0 60 0 14 0 58 0 60 0 4103 0 2013 0 0132 gt 35 00 08 16 2014 35 00 P 1 13 0 25 1 08 1 14 0 6169 0 2018 0 0131 gt 36 00 08 16 2014 36 00 P 1 79 0 34 1 76 1 90 0 7945 0 1522 0 0102 gt 37 00 08 16 2014 37 00 P 2 47 2 79 0 9806 0 0368 0 0026 Source StreetSmart Edge Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 226 Trade Setup Here is the breakdown for John s setup and trade e Current XYZ Price 34 43 e Current Bid Price XYZ 08 16 2014 32 00 Put 0 11 e Current Ask Price XYZ 08 16 2014 34 00 Put 0 60 e Current Ask Price XYZ 08 16 2014 34 00 C
419. on Chart Tasks e Tab Sync On Off If Sync is On all tabs in that Chart tool will display a chart for the same symbol If Sync is Off each tab can display a different symbol and when you enter a new symbol in the Title Bar only the top tab will display that symbol If you switch to Tab Sync is On from Tab Sync is Off and have different symbols in each tab the symbol in the active tab will populate all the tabs in that Chart Tool Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 262 Chart Features Level I Data Bar Chart Set tings History Control e Zoom Click the magnifying glass amp and then click and drag across a portion of the chart to zoom in on that por tion You can achieve a similar result using the History Control feature described below e Save Click the disk icon Fi to save the active chart You can also right click on a tab to select a save option You have a choice of saving your chart as a Template or as a File Choose to save as a File if you will want to access the chart outside of the software For instance you can back up your chart files or even share the file with someone Charts saved as Templates essentially become part of the software and are accessible by selecting Open Chart from Template in the right click menu This is useful when you want to use the settings of this chart as a template for other charts Shows the Date Time Open Hi
420. ong Long Short strike price strike price strike price strike price 65 00 67 50 70 00 Lower Stock price ote Chart depicts strategy at expiration e Maximum Gain 0 52 e Maximum Loss 65 00 62 50 0 52 1 98 e Lower Break Even Lowest Strike Price Net Credit 62 50 0 52 63 02 e Upper Break Even Highest Strike Price Net Credit 70 00 0 52 69 48 Note commissions have been excluded to simplify the calculations Short options can be assigned at any time and therefore option sellers assume the risk of assignment at any point up until and including expiration Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account Qualified Spreads With a Qualified Spread the purchased option is required to expire on the same or later expiration date than the option sold When there is more than one pos sible way to pair available options in your Account Schwab has the discretion to Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 224 determine the spread pairings Schwab may pair options in a manner that does not produce the lowest possible margin requirements Note For butterfly and cond
421. oo 1 When you are setting up the alert choose Set Trigger Actions 2 Chose One Time Notification and select the notifications you want to receive for this particular alert or conditional order 3 Click OK Conditional Orders and Alerts Settings Global settings for Conditional Orders and Alerts can be found in the main menu under Settings gt Settings In the Trading tab choose from e Notifications which control how you are notified of Conditional Orders or Alerts triggering and e Conditional Orders Alerts with the settings described below Expiration Range Set a default number of days up to 60 after which conditional orders and alerts will expire Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 255 Conditional Order Templates The Conditional Orders tab of the All in One tool Trade tool or Symbol Hub is where you can tell the software to automatically send an order if certain market conditions you specify are met To make it easier to set up conditional orders especially if you tend to use the same rules or conditions when placing orders StreetSmart Edge provides Conditional Order Templates e The software comes with several standard templates for commonly used trading strategies all of which can be customized e Or you can Save your favorite conditional order settings as a template and save a few steps the next time you use that order e Note that you
422. ook until a matching order is found ECNs are identified in the software as follows ARCA ARCA NSDQ NASDAQ single book Electronic Funds Transfer Transferring funds between accounts and firms electronically Elliot Wave Theory Originally published by Ralph Nelson Elliot in 1939 Elliot Wave Theory is a pat tern recognition theory that is based on repetitive wave patterns and the Fibon acci number sequence An ideal Elliott wave pattern holds that a five wave advance is followed by a three wave decline to form a complete cycle Ex Dividend Date Date a stock or cash dividend is reflected in the price of the security if you buy a stock on the ex dividend date you are not entitled to the dividend for stock dividends this is the trading day after the distribution is made Exercise Price or Strike Price See Strike Price Expiration The date an option contract becomes void All holders of options must indicate their desire to exercise by this date Fed Call Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 397 Also known as Regulation T or Reg T Call This type of call occurs when estab lishing a margin position Investors must deposit initial margin typically 50 of the cost of the trade per current Federal Reserve requirements Fibonacci Fan Lines Fibonacci Fan lines are based on the Fibonacci number series and combine two additional analytical concepts trend line and per
423. options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Butterfly A butterfly strategy combines two call spreads or two put spreads it involves four call legs or four put legs all with the same expiration date generally with consistent distances between strike prices The strategy gets its name from its 3 part structure involving the two outer strikes or wings and the middle strike representing the body Long Butterfly Calls A long butterfly is created by purchasing a lower strike Call selling double the quantity of a consecutively higher strike Call and purchasing a consecutively higher strike Call In order to be considered a standard butterfly the 3 strike prices involved should be equidistant Example e Buy to Open 1 XYZ 01 17 2015 70 00 Call e Sell to Open 2 XYZ 01 17 2015 75 00 Call e Buy to Open 1 XYZ 01 17 2015 80 00 Call If the strike prices are not equidistant from each other the butterfly is con sidered to be a broken wing butterfly The cost to purchase th
424. or settings to apply to all Momentum tabs Adjust Font Settings 1 From the right click or Actions menu select Font 2 Inthe Font window you can customize the font of each element including type size bold and italics 3 Check Apply to all Momentum tabs at the bottom of the Font window if you want the font settings to apply to all Momentum tabs Save a Momentum List e Right click on the tab at the top of the Momentum list and select Save tab name e Auto Save If you don t have Auto Save enabled be sure to manually save your layout if you want your new tabs to display next time you open StreetS mart Edge e You can save up to 20 Momentum lists in the software and you can Save an unlimited number of Momentum lists to a location outside the software using Save tab name to file Open a saved Momentum List To open a Momentum list in a new tab right click the next to the tabs in the Momentum list window then take one of the steps below e Open Momentum lists created in or provided with StreetSmart Edge by selecting one of the choices inthe Open Momentum List menu item e Open a Momentum list that has been saved to a file by selecting Open Momentum List from File then find the file where it is saved on your computer Select the file and click Open Creating a Fixed Symbol Order e Manually organize the symbols in a list by right clicking on the tab you want to reorder and selecting Reorder Symbols The
425. or spreads each option leg must have the same expiration date to qualify as those types of spreads Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Iron Butterfly A long iron butterfly strategy combines a call spread and a put spread it involves two call legs and two put legs all with the same expiration date generally with consistent distances between the 3 strike prices The strategy gets its name from its 3 part structure involving the two outer strikes or wings and the middle strike representing the body Long Iron Butterfly A long iron butterfly is created by selling a lower strike Put purchasing both a higher strike Put and Call middle Put and Call have matching strikes and selling a consecutively higher strike Call In order to be considered a standard iron but terfly the 3 strike prices involved should be equidistant Example e Sell to Open 1 XYZ 01 17 2015 25 00 Put e Buy to Open 1 XYZ 01 17 2015 27 50 Put e Buy to Open 1 XYZ 01 17 2015 27 50 Call e Sell to Open 1 XYZ 01 17 2015 30 00 Call If the strike prices are not equidistant from each other the butterfly is con sidered to be a broken wing butterfly The cost to purchase the
426. ore from the Settings panel amp The Chart Settings panel is accessible in the Chart tool or the Symbol Hub by gt clicking the arrow to open the drawer and view all the settings choices lt For a demonstration and more information on using Charts visit the Training page Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 267 o Gs e Tab Sync is On Q Q Hi ose 8 42 Volume 18 763 134 m Type Daily X PY style U Candlestick Hollow GQ overiays Add F Extra Periods 0 500 0 4 gt al Draw gt Gi studies 1 gt bE Colors b Settings Help for Chart settings Quick Jumps Date Range Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients Chart Settings Type Choose the time interval each point on the chart will represent For instance ona monthly candlestick chart each candlestick will show the open close high and low values for an entire month Choices are e Monthly e Weekly Daily e Minute increments of 60 30 15 10 5 1 e Custom Minute Enter your own period length up to 480 minutes e Tick You can choose how many executions make up a tick This
427. ort in Real Time is checked in the Columns and Settings window changes to data in the sort column will affect the current sort order in real time e For example if you have your Order Status display sorted alphabetically by Symbol when you open orders in your account the new orders will be inser ted into the Order Status display in the correct alphabetical order e Conditional orders stay together as a group at the bottom of the Order Status display Sort order change will apply to the conditional orders sec tion but the orders will sort among themselves rather than sorting with the live orders above Sorting by multiple rows can be accomplished by holding down the Shift Key while you left click on the headers of the columns which you want to sort e For example if sorting by All Open Orders all of the Open orders would be grouped together and within that group the rows would be arranged by the next sorting selection If there is no second selection the rows within the group would be arranged by their symbols from least to greatest alpha betically Customizing Columns There are several ways to rearrange the columns displayed in the Order Status tab e You can click the column headers and drag them to another spot in the Order Status display e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the
428. oss values the current trig ger value will display here If the alert uses a trailing stop the trigger value will dynamically update in the display as a new anchor price is reached Expiration Shows when the alert will expire Last Modified Shows time and date of last change to the alert set tings Submit Date Time Shows the time and date the alert was submitted Notes Shows the Notes icon E if you have created a note for the primary symbol being used in the alert Click the icon to see the note s Create Alerts Create alerts to notify you when certain market conditions occur They can help you manage risk on open positions or alert you to opportunities as favorable mar ket conditions appear depending on the type of conditions you include in the alert amp The Alerts tab where alerts are created and managed is found in the Account Details tool lt For a demonstration and more information on using Alerts visit the Training page Start creating an alert in one of 3 ways Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 54 e From the Alerts tab of the Account Details tool click Create Alert e Right click on a symbol anywhere in the software and select Create Alert on symbol e Right click in the Alerts tab and select Create New Alert Creating an alert 1 Inthe Create Alert window enter an Alert Name Name cannot include
429. osses in time premium are offset by the gains in intrinsic value The investor may continue to hold the out of the money option for the pos sibility to participate in any further opposite movement by the security However there is no guarantee the out of the money option would retain a high premium even with an increase in volatility Rather than selling following a dra matic price move the investor can continue to hold both options until expiration anticipating even more dramatic price movements in the future However unless such movements do occur time decay will eventually take its toll on both options premiums For use when investor anticipates e Dramatic movements in underlying security price e g due to an earnings announcement but unclear whether movement will be up or down e Increased volatility Financial Characteristics e Maximum Loss Total premiums paid e Maximum Gain Unlimited e Loses value with time Objective e Speculative gain EXAMPLE Long Strangle XYZ trades at 25 00 share An investor anticipates that the stock will dra matically rise or fall in the near future The investor purchases one 20 put for 1 00 and one 30 call for 1 00 for the opportunity to participate in large move ments in either direction Since each contract represents 100 shares the total cost to the investor for buying both contracts is 200 00 To break even the stock must either fall 7 00 share to 18 00 or rise 7 00 share
430. ote that recent deposits earn interest and are available for most types of trading activ ity but are not reflected in your author ization limit until they are cleared This value is only shown in accounts with a mar gin feature You will be charged interest on any amount you borrow that exceeds the Available Cash in the account The amount of money you can use to trade marginable equities using cash and the mar gin feature of your account Click Buying Power Details to understand this value for all security types This value is only shown in accounts with a margin feature You will be charged interest on any amount you borrow that exceeds the settled cash and sweep money market funds in the account The P amp L realized by closing positions today based on the cost of the position The Sum of P amp L for positions closed today Calculated as Price sold Price Purchased EXAMPLE Position XYZ has 150 unrealized profit com ing into the day During the day the profit on XYZ increases to 400 and the position is closed out Today s Net Realized P amp L would reflect 400 if this were the only pos ition closed for the current day The sum of today s change in P amp L for all open positions Based on whether Day Change P amp L is cal culated from open or close in the Account Settings shows the sum of Day Change P amp L for all positions closed today e If calculated from Prev Close cal culated for long positions as
431. ou learn how to use StreetSmart Edge s trading tools and submit simulated trades using live market data We recommend you use Demo Mode to familiarize yourself with the features in StreetSmart Edge or anytime you are trying out a new trading tool or strategy There are many resources available to help you with StreetSmart Edge Try going to the Getting Started Guide via the Help menu or you are able to access the user manual as you are now Visit the Trading Seminars amp Articles page for articles seminars and more information on the market technical trading risk management and investing strategies Your Trading Services Broker can answer your questions via either Live Help instant message chat or phone at 1 800 435 9050 If you have additional questions that aren t answered here check the Online Help or speak with an Trading Services Broker via Live Help chat or by calling 1 800 435 9050 Moving from StreetSmart Pro to StreetSmart Edge FAQ Here are some frequently asked questions about moving from StreetSmart Pro to StreetSmart Edge What to expect What if I want to con tinue to use StreetSmart Pro or use both StreetS mart Pro and StreetS mart Edge Downloading StreetSmart Edge will not change your existing installation of StreetS mart Pro By downloading StreetSmart Edge you will be provided access to Schwab s newest trading platform while retaining full access to StreetSmart Pro Do
432. ove an object e Right click either on the object or the chart key for the object and select Remove e You can also remove an object by clicking on it so it becomes bold and press Delete on your keyboard e If you want to remove all instances of the same type of object such as all Segment Lines right click on the name of the object at the top of the chart and select Remove or mouse over the name of the object and click the X next to it Studies use a stock s price movements volume and other his torical information to attempt to find patterns that may indicate Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 272 shifting price trends For details about each of the studies available in StreetSmart Edge see Chart Studies Add a study 1 To choose from a list of all available studies click View All Studies in the Studies panel of the Chart Settings 2 Inthe window that opens click on any study to add it to the chart 3 Then if necessary change the study settings such as line color pattern and weight at the bottom of the window 4 Depending on whether a study works in conjunction with the price chart some studies will automatically display on the price chart while others will display in a separate pane below the chart You can manually change this in the Show In field of the study settings 5 Enable Show Value to display a value label along with the study
433. ow and hides the Pause button and Actions menu While in streamlined view access hidden tabs through the Tabs dropdown access the pause fea ture by clicking on the pause icon in the Header To switch back to standard view click the view icon again The Track bar at the bottom of the tool allows you to keep a constant eye on one symbol Click on a symbol to load it in the Track bar The drop down menu button in the Track bar gives you quick access to trading alerts news and research for that symbol Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 334 aeons Last Price Daily Count Create a new High Low Tab 1 Right click on a High Low tab and select New High Low tab or click the next to the tabs 2 The default new tab tracks the entire NASDAQ and NYSE as well as Indices and shows both Daily and 52 week highs and lows for all To customize your new tab select Tab Settings from the right click or Actions menus See more on High Low Settings TIP You may display up to 4 High Low tools with up to 4 tabs in each You can also save up to 20 tabs to the software but save as many as you wishto a local hard drive using the Save as File feature Save a High Low Tab e Right click on the tab and select Save tab name or choose Save tab name from the Actions menu e Auto Save If you don t have Auto Save enabled be sure to manually save your layout if you want yo
434. owever investors are subject to additional risks including but not limited to currency fluctuation Their performance usually par allels that of the parent company on its domestic exchange ADRs offer inter national companies greater exposure and investors the chance to invest in well known foreign companies Arbitrage The simultaneous buying and selling of the same or closely related securities in different markets to take advantage of price disparities Arbitrage attempts to realize a profit with minimal to no risk but generally transaction fees and market inefficiencies will substantially minimize profitability for the retail investor Around the Money For strangles and collars strike prices of the call and put lie on opposite sides of the current price of the underlying security Ask The ask price is the displayed price at which a market maker or specialist offers to sell a stock At the Money An option is at the money if the strike price of the option equals the market price of the underlying security AIBICIDIEIFEIGIHIIIITKIL NIOJTPIQIRISITIUIVIWIX Bar Chart In a bar chart each time period is represented by a vertical bar that represents the range between the high and low prices A bar chart displays more information than a line chart which only shows the closing price for each period Some vari ations on the standard bar chart are the following HL only the high and low price for each time period HLC the high low
435. owing is an example of how P amp L is calculated when there are multiple exe cutions for one position Exe Cost Per Share What cutions the Pos itions Tab Dis plays 1 15 04 500 5 10 10Bu 20 y 500 DELL Calculation Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 97 Exe Cost Per Share cutions 20 500 20 10000 gt 20 per share 5 11 10Bu 25 y 500 DELL Calculation a 500 30 500 20 25000 gt 25000 1000 gt 25 per share 5 12 10Se 26 25 assuming a FIFO accounting method the Il 200 DELL default for Schwab accounts so average cost per 35 share is based on holding 300 shares 20 and 500 30 Calculation 300 20 500 30 21000 gt 21000 800 gt 26 25 note that the sell price is irrelevant 5 13 10Se 30 as all the remaining shares are from the 500 Il 400 DELL 30 purchase 32 5 14 10Bu 31 20 y 600 DELL Calculation Gee 400 30 600 32 31200 gt 31200 1000 gt 31 20 per share What the Pos itions Tab Dis plays DELL Cost 10 000 1 15 04 1000 DELL Cost 25 000 1 16 04 800 DELL Cost 21 000 26 25 x 800 21 000 1 16 04 400 DELL Cost 12 000 30 x 400 12 000 1 17 04 1000 DELL Cost 31 200 31 20 x 1000 31 200 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 98
436. p Co Inc All rights reserved Member SIPC 1015 6153 122 hot key to cancel all orders using either Cancel All on Symbol or Cancel All which will cancel all open orders for the account Once you set up one or more hot keys to place an order go to the Trading tool or Symbol Hub and press the hot key An order verification window will open and you can place the order TIP If you have order verification turned off the order will be sent imme diately upon pressing the hot key To minimize risk of accidentally placing orders consider creating hot keys that use a combination of the Ctrl key a letter number or Function key For example Ctr F2 amp Manage Hotkey settings by right clicking in the Stocks amp ETFs tab and select ing Hot Keys You can also access them from the main menu Settings gt Set tings and choose the Trading tab gt Equity Hot Keys sub tab Create a Hot Key 1 Right click in the Stocks amp ETFs tab of either the Trading tool or the Symbol Hub and choose Hot Keys 2 Click in the Keystroke field and press the hot key s you want to use Many keys and key combinations are available including the Function keys and symbols such as open close brackets Num Pad plus minus etc can be used in combination with modifier keys Ctrl Shift or Alt Create a 3 key combination by using two modifier keys and one letter number or Function key such as Ctrl Alt S Use the hot keys to create a system th
437. p Co Inc All rights reserved Member SIPC 1015 6153 400 Last Split Date The last date on which the shares of a security were increased or decreased by splitting Last Trade The price at which the last trade was executed after market close this is the closing price Last Trade Date and Time The date and time the security was last traded Level I A quote for a security that displays the current best Bid and Ask prices volume close price from the previous trading day open price high and low price for the day and perhaps the ratio of shares or market participants at the inside Bid and Ask Level II Market Depth Market Depth is a display of both Level I quotes and bid and ask quotes from all quoting market participants market makers and ECNs at lower and higher prices than the best bid and ask Level III Consists of Market Depth Service plus the ability to enter quotations dir ect execute orders and send information this service is restricted to FINRA member firms that function as registered Market Makers in either NASDAQ exchange listed or OTC Bulletin Board securities Limit Order An order to buy or sell a security at a specific price or better As opposed to a market order limit orders might not be filled quickly or at all if the market moves away from the specified price A limit order guarantees price but not execution Line Chart The line chart is a price chart that simply connects the closing prices for a
438. p up e The Watch List can also display your positions Right click on a Watch List tab and select Open Watch List gt My Positions Columns with position related data are also available in the Watch List For more see the Watch List section Position Views There are three ways to view positions From the top of the Position tab you can select Group by Underlying Group by Option Strategy or Ungrouped e Group by Underlying The default view arranges positions by underlying symbols e Option Strategy Grouping Ideal for options traders group your option positions together with their options strategies e Ungrouped If you would like all of the position rows to be independent of each other when sorting navigate to this view Select Multiple Positions Select multiple positions by holding the Ctrl key down and left clicking with your mouse to highlight them This is most helpful when managing option positions Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 77 Close a Position To initiate an order to close out a position in the Account Details tool click on the position and click Close Position at the top of the tool or right click on the pos ition and select Close symbol An order entry screen will open in which you can customize the order before sending it e Close All If you wish to close only part of the order uncheck Close All and specify the quantity you wish
439. piration month in the money put strike 25 at 3 00 for a net credit of 1 00 Using this strategy the maximum loss is 4 00 XYZ at 20 00 The investor will profit if the stock is either below 16 00 or above 24 at expiration The maximum profit an investor can receive in this example is 16 XYZ at zero If XYZ is at or above 25 00 the profit is limited to the 1 00 credit received from establishing the spread Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 235 Commissions taxes and transaction costs are not included in any of these strategy discussions but can affect final outcome and should be considered Please contact a tax advisor to discuss the tax implications of these strategies Many of the strategies described herein require the use of a margin account With long options investors may lose 100 of funds invested In the money long puts need to be closed out prior to expiration since exercising them could create short stock positions Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Vertical Call Spreads A strategy consisting of the purchase of a call option with one expiration date and strike pric
440. quity Ratings Difference between the Bid and the Ask Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 83 Positions Alerts Bracket Quantity Cost Total Displays a bell icon when an alert is set ona position Quantity of brackets for the position Please see the Brackets section for more information Notes on closing all or part of a position with brackets e Closing the entire position When a pos ition is closed any contingent bracket orders will be cancelled automatically e Closing part of a position Note that if you manually close part of a position with an associated bracket order the Bracket quantity may not match the position Quant ity shown in the Positions tab Do not be concerned by this because a bracket exit is treated like an order to close rather than an order to sell or buy for short positions and will never put you in an oversold or overbought position It will only act on the number of shares you actually hold The cost for the position For more information on Cost and Trade Lots see Trade Lot Details Important Information Regarding Cost Information and P amp L Calculations for Your Accounts Missing cost and P amp L information will be rep resented with an N A Incomplete cost and P amp L information will be represented with either the word Incomplete or an asterisk in the Cost column and P amp L columns
441. r Sub Industry SER Spread Earnings Per Share shows net income divided by the average number of shares outstanding fora company for the last 12 months Exchange on which the security is listed GICS Global Industry Classification Standard Industry classification From broad to specific helps define a company s business focus Also helps identify competitors Market value of all of a company s outstanding shares in millions Classifies the size of a company by Small Me dium Large indicates where the company falls within the broader classification i e M is a larger mid cap company Icon shows the availability of news on a symbol Right click and select View symbol news Ratio of company s previous close to earnings over the last 12 months The higher the P E ratio the more the market is willing to pay for each dollar of annual earnings GICS Global Industry Classification Standard Sector classification From broad to specific helps define a company s business focus Also helps identify competitors GICS Global Industry Classification Standard Sub Industry classification From broad to spe cific helps define a company s business focus Also helps identify competitors Schwab Equity Rating evaluates individual stock and provides a 5 point rating scale A B C D F indicating Schwab s outlook on the potential per formance of the stock over the coming 12 months More on Schwab E
442. r chased securities If no additional funds are deposited within 5 business days of the pur chase the sale of these securities will con stitute a free ride under Federal Reserve Regulation T This will result in a 90 day settled cash up front restriction EXAMPLE If you sold a fully paid for security on Monday the ist you could use the proceeds to purchase new a security prior to the settlement day of Thursday the 4th 3 day settlement However if you sold the newly purchased security prior to the settlement date Thursday the 4th you would then be required to deposit funds to pay for the purchase If you sold the new position on Thursday the 4th or anytime there after no addi tional funds would be required Using cash The maximum amount of money you can withdraw without accessing margin borrowing The amount is a com bination of credits in the account less any cash on hold Cash Borrowing The maximum amount you can withdraw from your account to by requesting a check or transferring funds to another account This value includes the cash balance in your account plus the max imum amount you can borrow against mar Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 74 Available Values Margin BP Today s Net Realized P amp L Today s Unrealized P amp L Today s Realized P amp L Descriptions ginable securities held in your margin account N
443. r Name 2 Select an Expiration date The default is the current day but you can set alerts to expire up to 60 days out Type in a date or click on the calendar to select a date 3 If you want the conditional order to only last for the current market session set the date to the current date TIP Active conditional orders remain active even when you log off They only deactivate if they expire are triggered or when the standard market session is not open for trading 4 If you wish to use a template to automatically fill in portions of the con ditional order select one from the Templates drop down and click Load For more on using templates see Conditional Order Templates 5 Now set up the Conditions that will trigger your order For more inform ation about each of the choices available when setting up your conditions see Alert amp Conditional Order Conditions 6 Set up the Orders you want to place when if your condition is met You may set up as many as 3 orders on 3 different symbols if desired to send to the market when your condition s are triggered Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 248 o Click Stock ETF to send an equity order and follow the instruc tions for placing an equity order o For options click Call or Put to send an option order and follow the instructions for placing a Call or Put order o Note that the Special Conditions settings ava
444. r than 5 00 e Volume is greater than 250 000 Search Chg Close List for Top 25 stocks whose e Stock Exchange is AMEX e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Chg Close List for Top 25 stocks whose e Stock Exchange is NGM NGS e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Chg Close List for Top 25 stocks whose e Stock Exchange is NASDAQ e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Daily High Count List for Top 25 stocks whose e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Daily Low Count List for 307 Screen Name Hitting Highs Yearly High Near Performance by Sector Change from Open Increased Volume Gap Up Stay Up Pre Defined Criteria Top 25 stocks whose e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Daily High Count List for Top 25 stocks whose e Difference between High and Current Price is equal to or less than 0 13 e Current Price is greater than 5 00 e Volume is greater than 250 000 Search 52 Wk high Daily High List for Bottom 25 stocks whose e Current Price is greater than 5 00 e Volume is greater than 250 000 Shows performance data for each Sector Industry and Sub Industry Click the arrow to expand each row Search Chg Open List for Top 25 stocks whose e Current Price is gr
445. r than two bands that are always an equal percentage away from the EMA Kelt ner Channels expand and contract based on a moving average of the True Range TR Customizable default of 20 periods 10 ATR Average True Range Periods and an ATR factor of 2 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 292 True Range Average Volume Over Time AVOT Formula The formulas for the upper and lower bands are UpperBand EMA F SMATR LowerBand EMA F SMATR where F is a factor 2 FR SMATR imt x 1 and a and TR max High Low High Close _ Close _ Low Use SSPro4 calculation StreetSmart Edge uses the modern calculation for Kelt ner Channels which uses EMA rather than SMA as the signal line However if you want Keltner Channels to continue using SMA as the signal line check this box True Range is the greatest of the following e The current high minus the current low e The absolute value of the current high less the previous close e The absolute value of the current low less the previous close This study is plotted in two parts The first plot represents the cumulative day s volume at each time point on an intra day chart e g the cumulative day s volume up to 9 35am ET then the cumulative day s volume up to 9 40am ET etc Each time s volume includes the volumes of all the times that p
446. racteristics e Maximum Loss Debit amount paid for the option e Maximum Profit Unlimited e Break Even Strike price of the option plus the debit amount paid for the option Objective e Speculative gain The maximum loss on a straight Call is limited as long as and only as long as the investor does not exercise the long call There is an additional risk associated with the expiration weekend If the long call is exercised the investor ends up with a long position in the stock Bad news during the weekend could force even greater losses on the investor before he can exit the long equity position EXAMPLE Long Straight Call Currently XYZ trades at 25 share The investor employs the strategy of buying one in the money call strike 20 for 6 00 share 1 contract 600 Using this strategy the investor pays a cash debit of 6 00 This is the maximum loss the investor can incur If the stock decreases to 19 00 share the long call will expire worthless and the investor loses the 6 premium The maximum gain if the stock price is higher than the strike is the difference between the closing price and the call strike less the call premium spent If the stock is trading at 30 then 30 20 6 4 profit The break even point for the strategy occurs when the price of XYZ is at 26 Long Call Gain Loss at Expiration 5 5 GAIN LOSS in dollars 5 10 15 20 25 30 35 STOCK PRICE in dollars Copyright 2010 2015 Cha
447. rading on the security has been halted cannot be changed Further because of the speed of execution and the short life span of marketable limit orders canceling or changing orders may not always be possible Refer to the Change column in your Order Status tab to see if an order can be changed indicated by a Yes Order Status Indicator You can change and cancel orders from the Order Status Indicator 0 found at the top of either the Trade tool or Symbol Hub or in the Option Chains Click on the indicator to view your choices for your open orders in the selected position Read more about the Order Status and Position Indicators Equity Trading Venues Following are the Venues available in the All in One tool Trade tool and Symbol Hub when placing an order in StreetSmart Edge No single order routing venue Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 125 is best in all situations so it is important that you familiarize yourself with the routes available and determine which best fits the market conditions Routing Venues Smart Direct Access Pre Market All StreetSmart Edge users have access to Smart order routing which is designed to seek the best trade execution for your order in the timeliest man ner possible unless otherwise specified e Toread more about Smart order routing see How Smart Orders Route e To learn about the choices you have when set
448. rage number of shares outstanding for a company for the last fiscal year minus 2 Earnings Per Share shows net income divided by the average number of shares outstanding fora Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 321 Company Performance EPS Yr 4 5 Yr Projected Growth Rate Margin Sales Per Employee Price Performance Change Change Chg Open Chg Open Gap Gap company for the last fiscal year minus 3 Earnings Per Share shows net income divided by the average number of shares outstanding fora company for the last fiscal year minus 4 Compounded earnings growth rate projected for the next five years based on the last actual repor ted annual earnings and estimated consensus growth rates as provided by I B E S Net income for the latest reported full fiscal year including discontinued operations but before adjustments for dividends or extraordinary items divided by net sales and other operating revenues for the latest full fiscal year Sales for the latest fiscal year divided by the number of employees expressed as dollars per employee Change in the price from the previous day s Close expressed as a point value updated at 6 a m Eastern Time Change in the price from the previous day s Close expressed as a percentage i e difference between Close and Current Price divided by Close updated at 6 a m
449. rch Fundamental Data tool for symbol and displays fundamentals for the symbol including earnings ratings and other met rics Link to Schwab com Takes you to the research portion of Research for symbol Schwab com so you can do further research into the stock Edit Tick Data Allows you to correct bad ticks that may skew the chart display Choose the Period you wish to edit and then change the Open High Low or Close fields to meet your needs Click Save to display your changes in the chart Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 266 Chart Display Right Click Menu Settings Zoom Help Chart Settings Click Reset to revert to the original price data for the period you are currently dis playing Click Reset All to revert all peri ods back to their original price data Control chart display settings such as price scale line widths and other elements from this settings pop up More information on Settings Turns your mouse pointer into a magnifying glass which you can click and drag across a portion of the chart to zoom in on that por tion You can also click the amp at the top of the chart to turn Zoom on Opens the online help to the Charts inform ation Use the Chart Settings panel to customize your chart Select the type and style of chart add overlays draw trend lines and other objects change the colors and m
450. rchased shares or contracts including commissions Type Transactions Transactions The Transactions tab displays transactions for the current day as well as trans Describes what type of security the position was This could be incorporated into the screen design if we follow the lead of Schwab com do a primary sort on the Type actions made within the last 90 days The Transactions view page is read only so the data cannot be manipulated but can be exported for use with other pro grams such as MS Excel You can view trade executions deposits withdrawals Trade Away and Prime Broker transactions and transfers between your brokerage and a bank deposit account amp Transactions can be found in the Account Detail tool Note Transaction History information is not available in Demo mode Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 103 Setting Date Range You can view up to the last 90 days of data though the default view shows data up to 60 days Click the From date field to set the start date for the data set you want to retrieve and then click the To date field to choose the ending date The default is today s date Click Go to retrieve the data Exporting Transactions 1 You can Export your Transactions data to x s for Office XP and later ver sions csv or txt formats from the Actions menu or by right clicking within the Transactions displa
451. rders These actions can also be accessed by right clicking the Order Status Indicator For more on changing canceling or editing brackets see Changing or Canceling Orders Position Indicator H 100 22 31 indicates you have one pos ition for 100 shares Long position size does not include option positions with an aver age cost basis of 22 31 per share Click the indicator to display a list of all option and equity positions in your account for the underlying symbol The list shows each equity position each option position unrealized P amp L for each and includes a link to Close Position and Rol lout Position for option positions Clicking the Close Position link will opena trade window with the quantity pre filled and Close All selected you can uncheck Close All and reduce the quantity if you wish Clicking Rollout Position will open the All in One Trade tool with a ticket and option chain set up to place a rollout order Click Review Order to review the order and then Place Order to send the order Level I Shows basic quote data for the equity on display Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 111 Stock amp ETFs Tab Features Trade Ticket Estimated Cost You can specify which data components to dis play or none at all by right clicking in the Level I area and choosing Level I Settings Choose the columns to display and their
452. re not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request General Notes If a symbol in the Positions tab has a note asso ciated with it in the Notes tool the Notes icon E will display Click the icon to see the note s Symbol The unique 1 5 characters used to represent the security Symbols are defined by the different markets or exchanges Sometimes a security might not have a symbol in which case an internal Schwab reference will be used Security Type Type of security e Eqty Equity e MF Mutual Fund e Bnd Bond e Call Call option e Put Put option Company Info Description Company name or description of item Dividend Amount Annual taxable payment declared by a com pany s board of directors and given to its share holders out of the company s current or retained earnings Dividend Yield Dividends paid by company over last 12 months as a of Previous Close Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 82 Company Info EPS ttm Exchange Industry Market Cap Mkt Cap Class News P E ttm Secto
453. re on Option Chains Will attempt to cancel the most recent open order for the stock loaded in the Trade tool Check your Messages or Order Status to confirm success of cancel order Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Placing Option Orders Single Leg The steps for placing an option order vary depending on the option strategy you are using but following are the general steps with links to more details Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 165 1 If trading from the Trade tool or Symbol Hub click the Options tab In the All in One tool select Calls Puts Calls or Puts from the Strategy Selection drop down next to the tab name 2 Enter the underlying symbol in the Title Bar and press Enter on the key board or click Go 3 If trading from the Trade tool or Symbol Hub select the type of option order you wish to place from the Strategy Selector For more on the types of strategies you can trade from the Options tab see Option Strategies Over view 4 The Option Chain display at the bottom of the Opt
454. recede it Since it s a cumu lative measure this plot will never fall The second plot shows the average of the cumulative day s volumes at each time on an intra day chart over an n day period Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 293 On Balance Volume OBV Price Relative to Sym bol Volume e g the 10 day average of the cumulative volume up to 9 35am ET on each day then the 10 day average of the cumulative volume up to 9 40am ET on each day etc Since it s cumulative this plot will never fall Where the cumulative day s volume rises above the average cumulative day s volume activity is greater than the average cumulative activity of the previous n days activity Where the cumulative day s volume falls below the average cumulative day s volume activity is lighter than the average cumulative activity of the previous n days activity This indicator relates volume to price changes by adding volume to a running total when the price closes up for a period then subtracts the volume if the stock closes down for a period You can overlay the study on or underneath the price chart Formula t OBV J S Vok The formula is i a oh where 4 if Close Close _ gt 0 and 4 1 jf Close Close _ lt 0 Compares the performance of the symbol currently loaded in the chart to the symbol specified in the stu
455. res will not be able to be included in the order e Close All can be turned on and off If turned off the quantity will revert to the Order Quantity default amount selected in the Settings gt Trading tab of the main menu e This method is the only way to sell fractional shares on StreetSmart Edge Otherwise you may place the order by calling a Schwab broker or place the order on Schwab com Trailing Stops A Trailing Stop order type is a buy sell short order whose stop price will trail either the current inside ask if buying or inside bid if selling shorting at the time the order was submitted by the value you specified in the Trailing Amount field EXAMPLE e You have atrailing stop of 5 set e If at any point the bid or ask price retraces the specified Trailing Amount a Smart Market order will be routed for the quantity you specified e If you place an order to close a position using a trailing stop set to 5 if the bid price increases 9 and then drops 5 the order will be sent at that time When placing a Trailing Stop order please note that you cannot change the order to another order type using the Change feature in the Order Status window nor can you change another order type to a Trailing Stop order In both cases you would have to cancel the order and resubmit with a different order type Symbol Formats Retrieving data for certain types of financial instruments requires entering them ina format that is recog
456. return on his investment Spread vs Long Call Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 237 Vertical Bull Spread vs Long Call Gain Loss at Expiration long call spread 2 4 6 8 GAIN LOSS in dollars 16 18 20 22 24 26 28 30 32 STOCK PRICE in dollars Spread Long Call Long Call Short Call Gap ee ot Spread x Total GainLoss Gain Loss Expiration Gain Loss Gain ex s s 25 HS uojs 100 00 00 s 4 10 1001S 100 10000 _ S a 24 eojs sojs 5 001 500 00 500 00 Point Bear Vertical Call Spread In a Bear Call Spread an investor performs the exact opposite transactions as those used in the Bull Call Spread Because the investor maintains a negative out look on the underlying security he sells in the money calls and buys out of the money calls at a higher strike price but sharing the same expiration This strategy is often termed a credit spread because of the net inflow of capital received when the investor establishes the position As a result if the value of the security falls below the strike price of the written call at expiration the investor will retain the initial amount received to establish the spread However if the security increases in value the investor may suffer a loss The spread strategy caps the maximum value of this loss at the difference between the two
457. review window Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 429 View Options Zoom Full Size Page Width Whole Page Two Pages Click the icons or press Ctril Plus orCtrl Minus on your keyboard to zoom in and out on the page Click the x icon or press Ctri 1 to view the page at 100 the scale the page will print Click the E icon or press Ctrl 2 to display the full printable page to fill the width of the Print Preview window Click the E icon or press Ctrl 3 to display the bird s eye view of the full page Click the 7 icon or press Ctrl 4 to display two pages at a time in the print preview Select Printer Page Range Number of copies Choose the printer you wish to print to and edit any preferences from the Preferences button Choose to print All pages default or a specified range of pages Specify how many copies of the document you want to print Collate If you are printing multiple copies of a multi page document you can specify whether you want the pages to be collated Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 430
458. rice is greater than 0 e Volume is greater than 0 Search Chg Close List for Top 10 stocks whose e Current Price is greater than 5 00 e Volume is greater than 250 000 Top 10 Option Gainers Top 10 Decliners Top 10 Option Decliners Top 25 Gain AMEX Search Chg Close List for Top 10 options whose e Current Price is greater than 0 e Volume is greater than 0 Search Chg Close List for Bottom 10 stocks whose e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Chg Close List for Bottom 10 options whose e Current Price is greater than 0 e Volume is greater than 0 Search Chg Close List for Top 25 stocks whose e Stock Exchange is AMEX e Current Price is greater than 5 00 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 306 Screen Name Top 25 Gain NYSE Top 25 Gain NASDAQ Top 25 Gain AMEX Top 25 Gain NYSE Top 25 Gain NASDAQ Daily High Count Daily Low Count Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 Pre Defined Criteria e Volume is greater than 250 000 Search Chg Close List for Top 25 stocks whose e Stock Exchange is NGM NGS e Current Price is greater than 5 00 e Volume is greater than 250 000 Search Chg Close List for Top 25 stocks whose e Stock Exchange is NASDAQ e Current Price is greate
459. right 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 325 Price Performance High 5 Day High 20 Day High 1 Mo High YTD High 52 Week High 52 Wk Daily High Low Prev Day Low 5 Day Low 20 Day Low 1 Mo Low YTD Low 52 Week Low 52 Wk Daily Low Trading Range Chg of Range from High Highest price the stock has reached over the last five days not including today Highest price the stock has reached over the last 20 days not including today Highest price the stock has reached over the last month not including today Highest price the stock has reached over the last year not including today Highest price a stock as reached in the past 52 weeks not including today Shows the distance between the 52 Week High and the Daily High i e if the stock s 52 week high is 45 and the daily high is 42 this column will show a 3 Lowest price the stock has traded in the pre vious trading day Lowest price the stock has reached over the last five days not including today Lowest price the stock has reached over the last 20 days not including today Lowest price the stock has reached over the last month not including today Lowest price the stock has reached over the last year not including today Lowest price a stock as reached in the past 52 weeks not including today Shows the difference between the 52 Week Low and
460. rily or permanently sus pended without prior notice at any time at our discretion Standard Market Hours e Individual investor orders may be executed from 9 30 a m to 4 00 p m ET e Orders can be placed at any time Extended Hours Trad ing at Schwab Pre Market Trading e Individual investor orders may be executed from 8 00 a m to 9 25 a m ET e Orders can be placed as early as 8 05 p m the pre vious trading day but order exe cution will not begin until 8 00 a m e Orders cannot be placed until after 8 00 p m ET for next day s ses sion After Hours Trading e Individual investor orders may be executed from 4 15 p m to 8 00 p m ET e Orders can be placed as early as 4 05 p m ET but order execution will not begin until 4 15 p m Extended Hours Trad ing via Direct Access on StreetSmart Edge Please refer to the table in Direct Access Routes for the hours of operation for each rout ing channel These des tinations do not in any way differentiate orders based on the time of day the order is submitted Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 136 Standard Market Hours Extended Hours Trad ing at Schwab e Orders cannot be placed after 8 00 p m ET Trading occurs on NASDAQ and the exchanges through a variety of market cen ters All orders types avail able via StreetSmart Edge are
461. riods used in the calculation Formula The formula for an n period Rate of Change is RateOfChange Price Z Price 100 Price Stochastic K Part of the stochastic indicator along with D Shows the price level of a stock in relation to its price range over a given period You can change the period used in the calculation from the default of 14 periods Formula The formula for an n period K is Close LowestLowhLastnPeriods Highest Hig hinLastnPeriods Lowest LowlnLastnPeriods Stochastic D Part of the stochastic indicator along with K Shows the degree of smoothing or moving average period of K You can change the periods used in the calculation from the default of 14 periods and 3 periods For calculation purposes D is an SMA of K below K 100 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 283 Stochastic D Slow Similar in principle to D D Slow represents a slower less volatile indicator that simply adds an addi tional degree of smoothing or moving aver age period to the original D You can change the period used in the calculation from the default of 14 periods 3 periods and 3 periods For calculation purposes D Slow is an SMA of D above Williams R A momentum indicator that measures over bought and oversold levels The oversold indications are in the range of 80 to 100 while the overbought indic
462. rity s price closed relative to its price range over a given time period The indicator consists of two lines representing the pos ition of the market ona percentile basis with zero at the bottom of the n day range and 100 at the top of the range The main faster line is called K while the second line called D is simply a moving average of K A stochastic value of 50 indicates that the last closing price is at the midpoint of the trading range for the specified period Readings above 75 may indicate that the security is overbought while readings below 25 could suggest it is oversold It is import ant to note that it is not unusual for Stochastics to remain in an over bought oversold condition for a long time period as the security s price continues to climb fall Generally a bullish interpretation may be suggested when the kK line crosses above the D line while in oversold territory and a bearish interpretation may Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 413 be suggested when the K line crosses below the D line while in overbought territory Stock Dividends A dividend paid in stock rather than cash Stop Limit Order An order that becomes a limit order once the security trades at or through the designated stop price A stop limit order instructs a broker to buy or sell at a spe cific price or better but only after a given stop price has been reached or passed It
463. rles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 197 Short Call The Short Straight Call may allow an investor to profit from downward move ments in the underlying security or index It uses the exact opposite structure as the Long Call If the security or index falls in value the investor can generally profit The maximum profit is the premium received by selling the option If the security rises in value the maximum loss is unlimited For use when investor anticipates e Declining market security depreciation Financial Characteristics e Maximum Loss Unlimited e Maximum Gain Credit received by selling the call option e Break Even Strike price of the option plus the credit received for the sold option Objective e Speculative gain EXAMPLE Short Straight Call Currently XYZ trades at 25 share The investor believes the stock will fall and wants to benefit from the downward movement The investor shorts a Straight Call option strike 20 for 6 00 share 1 contract 600 The maximum loss is unlimited should the stock prices suddenly rise in price The maximum loss would be calculated by taking the closing price at expiration less the strike price less the credit received on the sale of the option If the stock closes at 32 on expir ation there will be a 6 loss 32 20 6 6 loss The maximum profit an investor can receive is the credit received when selling the option For example if the same
464. rom Open is 10 and you want an alert or order to trigger when the Change from Open is 30 you would need to set an alert or order that triggers when it Increases to 30 e Change from Close You can set up an alert or conditional order to trigger based on the dif ference between the current price of a stock and the previous closing price Note that the change amount itself is used as a basis for the calculation so that if the Change from Close is 10 cents for example and you want an alert or order to trigger when the Change from Close is 30 cents it would need to set an alert that triggers when Change from Close Increases to 30 points e Time You can set your alert or conditional order to trigger at a specific time during regular market hours or before or after a set time e Share P amp L When you use the Share P amp L variable this P amp L amount is based on the dif ference between your Original Trade Price and the current bid price if you are long the stock or the ask price if you are short Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 251 For example if you purchased 100 shares of DELL at 30 and it s currently trading at 33 your share P amp L in this case is 3 points If you want be alerted or send an order to exit your position with a 6 point profit the Share P amp L would need to Increase to 6 points e Trade P amp L When you use the Trade P amp
465. rting Cost Basis Methods First in Shares you acquired first are sold first This is Schwab s First out default Cost Basis Method for equities ETFs and DRIPs FIFO Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 94 Cost Basis Methods Last in First out LIFO High Cost Low Cost Tax Lot Optimizer Specified Lots Shares you acquired last are sold first Shares with the highest cost are sold first Shares with the lowest cost are sold first Lots are selected and sold with the objective of taking losses short term then long term and gains last long term then short term Click here to see the order of sales for this method Lots reflecting short term losses from greatest short term loss to least short term loss Short term losses Lots reflecting long term losses from greatest long term loss to least long term loss Long term losses Short term lots reflecting no gain nor loss Short term no gains nor losses Long term lots reflecting no gain nor loss Long term no gains nor losses Lots reflecting long term gains from least long term gain to greatest long term gain Long term gains Lots reflecting short terms gains from least short term gain to greatest short term gain Short term gains Manually select from a list of eligible lots which lots are sold at the time
466. s Position Quantities When placing a conditional order where you are trading a securities in your account if the tradable quantity of your position is less than the order quantity the software will send the order for the lesser amount as opposed to rejecting the order due to insufficient shares available to trade EXAMPLE You have a conditional order to sell your 1000 shares of ABCD if Trade P amp L loses 1 At some point between when you established the conditional order and when it triggers you sell 300 shares When Trade P amp L loses 1 the software will adjust to the new quantity and send a Smart market order for 700 shares will be sent The same would hold true if you were short 1000 shares of ABCD and you tried to buy 1500 shares using a conditional order P amp L Alerts If you have an active conditional order based on either the Share or Trade P amp L of a position and you increase or reduce the position quantity the software will ask you to decide what to do with the conditional order You can tell it to e Keep the order as it is without recalculating the trigger price due to accom modate the updated position e Change the order to include the new position and recalculate the trigger price e Deactivate the order to change it to an Inactive state in the Order Status tab e Remove the order to deactivate it and remove it from the Order Status tab After a Conditional Order Triggers e Conditional orders established
467. s Your Trading Services Representative can answer your questions via either Live Help instant message chat or phone at 1 800 435 9050 Although you will not be able to migrate the exact layout of StreetSmart Pro StreetSmart Edge functionality makes layouts more user friendly easier to navigate and more visually appealing Sample layouts are provided with the StreetSmart Edge applic ation and new tools and features allow you to quickly and easily customize layouts To help make layout set up a little easier you have the ability to open your StreetSmart Pro Watch Lists in Edge To recreate your Alerts in StreetSmart Edge go to the Alerts tab in the Account Details win dow and activate the Alerts System Requirements FAQs Here are some frequently asked questions about StreetSmart Edge system requirements What are the minimum system requirements How much memory do I need Minimum Configuration Operating System Windows Vista or Win dows 7 Touch screens and tablets not cer tified or later CPU Intel Core i5 or higher Memory 2 GB RAM or higher Disk Space 200 MB hard drive space Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 16 What is the recom mended system con figuration I have a Mac Can I use StreetSmart Edge How do I set up right click for my Mac Graphics 512 MB Video card or higher External USB video
468. s e Schwab reserves the right to change its extended hours session and may cancel extended hours sessions without prior notice e No matter when you submit a Direct Access Order you can only request a cancel you can never change your order e After hours order flow is routed to UBS Eligible Securities Most NASDAQ and listed securities are currently eligible for extended hours trad ing at Schwab However at any time any number of securities may not be avail able due to lack of trading interest during the Extended Hours Trading Session Order Types Only limit orders are accepted during extended hours The maximum order size is 25 000 shares Quotes Quotes for the Extended Hours Trading session reflect the best Bid buy and Ask sell orders currently available through the participating market centers Changing and Canceling Orders You can attempt to change or cancel an Extended Hours order within the same Extended Hours session as long as the status of your order is open Go to the Order Status tab of your Account Details tool to access the change cancel fea tures or access via the Order Status Indicator Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 134 Unexecuted Trades Unexecuted orders do not carry over into the next Standard or Extended Hours Trading Session Any open orders will be automatically canceled at the end of the current Pre Market or After Hour
469. s 1 From the right click or Actions menu select Font 2 Inthe Font window you can customize the font of each element including type size bold and italics 3 Check Apply to all High Low tabs at the bottom of the Font window if you want the font settings to apply to all High Low tabs Duplicate a High Low Tab If you want to open another tab identical to an existing High Low tab right click on the tab at the top of the High Low tool and select Duplicate tab name Close a High Low Tab Click the X in the tab to close it or right click on the tab name select Close tab name Closing a tab removes it from your High Low tool but does not per manently delete it unless you haven t saved it Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 336 High Low Settings StreetSmart Edge High Low tabs are customizable allowing you to choose the types of stocks and or indices for which you want to see highs and lows Access the High Low Settings window by right clicking in a tab or clicking the Actions menu and selecting Tab Settings Applying Settings to Individual or All Lists You can choose to apply the settings changes you make to either just the current High Low tab or to all High Low tabs The default is to apply the settings only to the current tab but if you prefer the settings to apply to all be sure to make that selection at the bottom of the Settings window before cl
470. s The tool tracks the incoming quote signals for a configurable period of time separates the incom ing signals by stock and then displays the accumulated data It is important to understand what the momentum signals show It is tempting to interpret these signals as showing price velocity or in other words the speed and direction the price change of a particular stock But that s inaccurate The tool only shows the amount of price increasing green or price decreasing red activ ity that the market participants have been engaged in Score The Score combines a symbol s Activity Rate and Net Value explained below into a single strength value Combining these values compensates for the unfa vorable behavior of the Net Value on low activity stocks and allows the Score to give a much more reliable movement indication e The Activity Rate is the amount of market participant activity that has occurred for a particular symbol over the last time frame by counting the number of momentum signals for that stock e The Net Value is the sum of all the signal weights for a particular symbol over the last time frame by summing the green 1 and red 1 messages that have been received for each stock NOTE Because the Score is a dynamic calculation the score values in StreetS mart Edge will likely not match the values shown in the Dynamic Ticker in StreetSmart Pro Signals that affect momentum e Inside Upticks The inside price increas
471. s Trad Extended Hours Trad Hours ing at Schwab ing via Direct Access on StreetSmart Edge standard market or Extended Hours Trad ing Sessions remain on the books of the ECN until the end of the day if you have changed your Auto Timeout setting to zero In general higher trad Lower trading activity Lower trading activity ing activity means may result in lower like may result in lower like more liquidity anda lihood of order exe lihood of order exe greater likelihood of cution plus wider cution plus wider order execution spreads and greater spreads and greater price fluctuation price fluctuation Direct Access order destinations do not make a distinction between the stand ard session and the extended hours sessions Orders can be sent anytime dur ing the ECN s or NASDAQ s hours of operation Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value IIV For certain Derivative Securities Products an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours Since the underlying index value and IIV are not calculated or widely dis seminated during the pre market and post market sessions an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals How Smart Orders Route The Smart venue is a Schwab
472. s Watch Items display but they will be tracked by the News Watch tab o Breaking News If you want the results from your Breaking News tab query to also display in your News Watch tab check Breaking News The query won t actually display in the News Watch Items but results will still appear in the News Watch tab 3 As you add symbols news codes by the first three means listed above they will display in the News Watch Items column on the right side of the edit window 4 When you are finished with your list click OK News Provider Settings You may enable or disable specific news providers from streaming news to your News tool To make changes to these settings right click in any of the news tabs or click the Actions drop down and select News Provider Settings This is a global setting so it is also available from the main Settings menu at the top of the software Check or uncheck news providers as you wish and click Save to enable the changes and close the window Briefing com The Briefing com tab in the News tool provides access to commentary from Brief ing com including live analysis of market and economic events news earnings broker ratings changes and rumors At the top of the Briefing com tab select the type of information you want to see using the drop down menu Click a headline to display the article in the preview pane Double click on a headline or right click and select Open Story to open the article in its own
473. s session Unexecuted Direct Access Routes orders will not carry over to the next day Ifa Direct Access order is not executed it will automatically be canceled at the time the market center to which you routed your order closes Direct Access orders that are not auto canceled will be outed at the time the venue to which you routed your order closes Risks of Extended Hours Trading Extended Hours Trading Sessions may not be suitable for all investors since they pose certain risks including but not limited to lower liquidity changing prices news announcements higher volatility and wider spreads Extended Hours Trading Sessions do not take place on official Exchange holidays or when the Exchanges close early Schwab reserves the right to change or modify the hours of operation at any time A Schwab Extended Hours Trading Ses sion or any security traded therein may be temporarily or permanently sus pended without prior notice at any time at our discretion Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value IIV For certain Derivative Securities Products an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours Since the underlying index value and IIV are not calculated or widely dis seminated during the pre market and post market sessions an investor who is unable to calculate implied values for certain Derivative Sec
474. s sort order to put that position in the correct alphabetical order Customizing Columns There are several ways to rearrange the columns displayed in your Realized Gain Loss tab e You can click the column headers and drag them to another spot in the Real ized Gain Loss tab e You can also right click on a column header and choose a different column from the list of all available columns TIP If the column you choose is not currently displayed in the Real ized Gain Loss tab it will completely displace the column that was there If it is already in the display the two columns will swap places e You can also arrange column order from the Columns and Settings window which is available when you right click on the tab name Check the columns you want to display in the Realized Gain Loss tab All chosen fields display in the Column Order display on the right Click a column name and use the Up Down buttons to move the column into a new position e For brief descriptions of each column hover your mouse pointer over the column name in the Columns and Settings window For more in depth descriptions of each column see Realized Gain Loss Column Descriptions Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 100 Applying Settings to One or All Tabs You can choose to apply the settings changes you make to either just the current Realized Gain Loss tab or to all current and future Realiz
475. se a trailing stop exit in conjunction with a profit and or loss exit the trailing stop will operate between these two exits If either of the profit or stop loss exit prices are met the bracket will trigger regardless of any trail ing stop you may have set EXAMPLE lif you bought a stock at 10 and wanted to exit the position at 12 you could enter 2 pts 20 or 12 The Est Price label will show you what the likely result might be if the Profit Exit is triggered but that price will be adjusted if the average fill price on your order is different 2if you bought a stock at 10 and wanted to protect yourself should the market move against you 5 or 50 from the execution price the trailing stop would place an order to close your position only if the stock s bid loses 5 from its highest gain The worst case scenario is that the exit order would go out at 9 50 because it simply never gained on the execution price Conversely the stock might not hit resistance until 14 before it drops 70 5 of 14 and the order is triggered If you had also set up a profit exit of 10 anda loss exit of 3 in con junction with your trailing stop exit the bracket would trigger at a bid that is either 3 below the execution price or 10 above that price if met This would occur regardless of your trailing stop calculation Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 151 e Stop Loss Exit Specifi
476. securities For options this field reflects the number of option contracts Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 88 Quote Data Ask Ask Size Bid Bid Size Change Change Chg Open Chg Open Ending Ask Ending Bid Ending Mid High Last Size Last Time Last Trade Low Midpoint Open Prev Close Volume Greeks Current inside Ask price Number of shares at inside ask Current inside Bid price Number of shares at inside bid Change from Previous Close to Last Trade Percent change from Previous Close to Last Trade Change from Open to Last Trade Percentage change from Open to Last Trade Ending Ask price of the market session Ending Bid price of the market session Ending Midpoint price of the market session Highest price the security has traded for the day Size of last trade Time of last trade Price of last trade Lowest price the security has traded for the day Midpoint between Bid and Ask Opening price for the day Closing price from previous market session Number of shares contracts the security has traded for the day TIn the Positions tab Greek values are multiplied by the position quantity and multiplier Delta Estimate of the change in position value per one point change in the underlying price based on the selected option pricing model Copyright 2010 2015 Charles Schwab amp Co
477. selling a consecutively higher strike Call all with the same expiration date The two middle strikes are typically positioned around the current price of the underlying stock In order to Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 228 be considered a standard condor the four strike prices involved should be equidistant Example e Sell to Open 1 XYZ 01 17 2015 40 00 Put e Buy to Open 1 XYZ 01 17 2015 42 50 Put e Buy to Open 1 XYZ 01 17 2015 45 00 Call e Sell to Open 1 XYZ 01 17 2015 47 50 Call If the distance between the two middle strikes the body is greater than the distance to the outer strikes the wings then the position may be considered to be an albatross spread The cost to purchase the inner strikes typically exceeds the premium received from selling the outer strikes therefore a long iron condor is typically estab lished as a net debit position For use when investor anticipates e Significant movement in security price in either direction e Higher volatility Financial Characteristics e Maximum Loss Initial net debit paid e Maximum Gain Difference between the long put strike price and short put strike price less the net debit paid Objective e Gain from significant change in price of the underlying security either up or down by expiration EXAMPLE Long Iron Condor Assume it is August ist 2014 and Michelle an options trader h
478. send an order if the bid for XYZ decreases to 18 per share or 2 less than the highest price reached after the Trailing Stop was entered You enter an Alert or Conditional Order with the Trail ing Stop enabled when the bid is at 20 to trigger when the Bid loses 2 Assuming the bid then increases to 25 per share the Trailing Stop will trig ger when the Bid decreases to 23 per share 25 2 23 per share If the stock never moves above 20 per share for the same type of Alert or Conditional Order it will only trigger if the Bid loses 2 20 2 18 And Or Click Add Another Condition to add up to 2 addi tional conditions to your Alert or Conditional Order e When you select And all conditions must be met at the same time for the alert or order to trigger e When you select Or any condition can trigger the alert or order independent of the other s e You cannot create an alert or conditional order with a combination of And and Or conditions when you have 3 conditions Remove unwanted additional conditions by clicking the minus icon at the end of the condition row Alert amp Conditional Order Notifications The Alert and Conditional Order Notifications tell the software what to do when your alert or conditional order conditions are met Setting up notifications is a step in creating alerts and creating conditional orders Default Notification The default notification is a System Beep but you can cha
479. space Displays the inside bid ask as NBBO at the top of the bid and ask columns Update during extended hours If checked Level I data will update during extended hours trading If unchecked it will freeze at the close price Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 129 Market Depth Settings ARCA Book If checked displays the ARCA book data in lower case text so you can distinguish between which quotes are only in the ARCA book and which quotes the whole market can see Nasdaq Market Depth Nasdaq Level II Exchange Best Only displays a market maker or exchange s best bid and ask quote rather than every quote at every price level in their books TotalView NSDQ Book If checked displays the NSDQ book data in lower case text so you can distinguish between which quotes are only inthe NSDQ book and which quotes the whole market can see Bid Ask Columns Display e Venue Market Center e Price e Size e Quote Change Arrow e Bid Ask Status e Bid Ask Time e Time e Bid Ask Changes 6 Display Venue lActivates small up down arrows in the Market Depth area of the Trading win dow indicating the direction a market participant just moved in relation to the inside price EXAMPLE If Market Maker ABCD is on the bid at 65 20 but backs off to 65 17 a down arrow will appear at the new price level If ABCD moves back up to 65 20
480. ssed as a percentage Difference between the average close for the last 20 days and the Current Price expressed as a point value Difference between the average close for the last 20 days and the Current Price expressed as a percentage i e difference between 20 Day Avg Close and Current Price divided by 20 Day Avg Close Difference between the average close for the last month and the Current Price expressed as a point value Difference between the average close for the last month and the Current Price expressed as a percentage i e difference between 1 Month Avg Close and Current Price divided by 1 Month Avg Close Difference between the average close for the last 6 months and the Current Price expressed Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 323 Price Performance Chg from 6 Mo Avg Close Chg from YTD Avg Close Chg from YTD Avg Close Total Return YTDO Total Return YTD1 Total Return YTD2 Total Return YTD3 Total Return YTD4 Total Return YTD5 as a point value Difference between the average close for the last 6 months and the Current Price expressed as a percentage i e difference between 6 Month Avg Close and Current Price divided by 6 Month Avg Close Difference between the average close for the last year and the Current Price expressed as a point value Difference between the average
481. st Strike Price Net Debit 90 00 1 54 88 46 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 221 Note commissions have been excluded to simplify the calculations Short options can be assigned at any time and therefore option sellers assume the risk of assignment at any point up until and including expiration Short Condor Calls A short condor using calls can be considered a combination of an in the money bear call spread and an out of the money bull call spread It is created by pur chasing a lower strike Call selling a lower middle strike Call selling a higher middle strike Call and purchasing a consecutively higher strike Call all with the same expiration date The two middle strikes are typically positioned around the current price of the underlying stock In order to be considered a standard condor the 4 strike prices involved should be equidistant Example e Sell to Open 1 XYZ 01 17 2015 90 00 Call e Buy to Open 1 XYZ 01 17 2015 95 00 Call e Buy to Open 1 XYZ 01 17 2015 100 00 Call e Sell to Open 1 XYZ 01 17 2015 105 00 Call If the distance between the two middle strikes the body is greater than the distance to the outer strikes the wings then the position may be considered to be an albatross spread The cost to purchase the outer strikes typically exceeds the premium received from selling the inner strikes therefore a long condor is typically es
482. stock list s up to 20 you want to import and click Open The list s will load as new tabs in your Watch List tool 4 You can choose to let the list s auto save as part of your layout or if you want to save them for later retrieval right click on each tab and select Save tab name Watch List Column Descriptions Watch Lists can track more than 70 different data fields for stocks indices and options See Manage Watch List Columns and Settings for directions on setting up your Watch List display Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request General Custom Number This column gives each row a unique number that stays with that row regardless of how you sort the list If you wish to return to the Custom sort order click this column New symbols Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 365 General Security Type Quote Data Symbol Change Bid Ask High Low Volume Last Trade Change added to the Watch List are given the next available number To change the C
483. strength of the current trends ina stock s movement as well as helping point out when a market may be changing from trending to non trending and vice versa ADX is cal culated by taking a modified moving average of DX Along with D is part of a stochastic indicator Shows the price level of a stock in relation to its price range over a given period Along with K is part of a stochastic indicator Shows the degree of smoothing or moving aver age period of K Similar in principle to D above except tends to show less market noise due to increasing the number of periods used in the calculation Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 331 Technicals Bollinger Band Top Bollinger Band Middle Bollinger Band Bot tom MACD MACD Signal Momentum 20 Day Momentum from Close 20 Day Momentum 40 Day Momentum from Close 40 Day The Middle line of a Bollinger Band is a simple moving average The Top and Bottom lines are placed n standard deviations above and below the centerline Since standard deviations area measure of volatility the bands widen during volatile price action and contract when the trad ing range tightens The Middle line of a Bollinger Band is a simple moving average The Top and Bottom lines are placed n standard deviations above and below the centerline Since standard deviations are a measure of
484. symbol in the Chart tool it will load in the Trade tool And if you double click on a symbol in your Watch List it will load in both the Trade and Chart tools Changing the Icon Change the icon for a tool by clicking on it default is the red diamond and selecting a different icon from the list Breaking Link If you want a tool to be com pletely separate and have no link to other tools choose the broken link icon at the bottom of the icon drop down Order Position Status This area indicates whether your account has an order or a position in the current security regard less of security type Order Status Indicator e 0 indicates you have one open order for this symbol in your account e Click the indicator to display a list of all option and equity orders in your account for the underlying symbol e The list shows the details of each order price venue quantity etc order number and quantity filled e It also gives you quick access links to Cancel Change or Add Edit Brackets for each order e Buttons at the top of the list also allow you to Cancel All symbol Equity Orders or Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 117 Title Bar Features Cancel All Open Orders These actions can also be accessed by right clicking the Order Status Indicator e For more on changing canceling or editing brackets see Changing or Canceling Or
485. t 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 346 Delete Results from Screen If you want to delete some ETFs from the results of your screen put a check next to their name then go to Next Steps gt Delete to remove them Delete a Screen Click My Saved Screens and click the X next to the name of the screen you want to delete Recognia Recognia is a third party web site that opens within StreetSmart Edge and provides chart pattern recognition and customizable event screeners You can have up to 8 Recognia windows open across all open layouts at once gt Get a demonstration and more information on the Recognia tool In the Recognia window you can choose between three tabs e Technical Insight is a chart pattern recognition tool that identifies both bullish and bearish technical patterns with corresponding target price ranges and pattern duration Users can also search for technical events on specific securities in which they are interested o Featured Ideas is a component of Technical Insight that displays trade ideas based on strategies that incorporate tech nical and fundamental analysis and are backtested to demon strate the historical performance o The backtesting feature displays the criteria which make up the underlying strategy of the Featured Idea You can also test how that strategy would have performed over the past five years with or without the use of tr
486. t opening For example an alert or order is set to trigger if the symbol loses 5 percent off the ask price If the alert or order does not fire on the first day it is active it will reinitialize the next day to the market opening value and reset the trigger price e If you wish to set a percentage Value or use a Trailing Stop you must use Gains or Loses as your operator The amount by which you want the variable to change e For Time enter the time you wish to set your alert or order to trigger at before or after The Variable and Operator you choose will change your available options for these fields Displays the original trade price for your position if available If unavailable or you want to change the cost value you may do so Only applies to alerts or conditional orders where the variable is Trade P amp L or Share P amp L e If the variable is Share P amp L enter the average share price you paid for the position e It the variable is Trade P amp L enter the total dol lar amount you paid for the position Works only with the Gains and Loses operator and can be applied to a point value or a percentage Trailing Stop Alert or Conditional Order Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 59 If example You are long 1000 shares of XYZ which was pur chased at 20 per share If you have a risk threshold of 10 you would want to be alerted or
487. t Cancel All Open symbol Orders Changing an Order For open Smart orders you may be able to make changes to the order such as quantity type limit price and more Click the order you wish to change and click Change Order at the top of the window or right click on the order and select Change Order A window with the order entry fields will open with your original order settings Make the desired changes and click Review Order If the settings are correct Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 42 upon review click Place Order Otherwise click Cancel Changes if you want to keep the original settings Note that you cannot change a Smart order to or from a trailing stop order type after the order has been submitted You must first cancel the order and then resubmit with a different order type Orders with Brackets You can change the primary order using Change Order as described above but to change the bracket exits themselves right click on the contingent bracket in the Order Status tab and select Edit Bracket You can not change the order AND its associated brackets via the Change Order function Multi Leg Option Orders You can change the primary order using Change Order as described above but cannot change or remove individual legs To change or remove individual legs cancel the entire multi leg order then rebuild and submit the new order NOTE Some orders in
488. t Studies Market Data amp Research Recognia News Watch Lists Screener Plus Alerts Symbol Hub Research Equity amp Option Trading Streamline your Trading with StreetSmart Edge Stock amp ETF Quotes Stock amp ETF Orders Option Quotes amp Trade Allin One Bracket Orders Conditional Orders System Requirements Recommended Configuration Operating System Windows 8 Touch screens and tablets not certified or later CPU Intel Core i7 AMD FX 8150 or equivalent Memory 4 GB RAM or higher Disk Space 200 MB hard drive space Graphics 1 GB Video card External USB video devices are not supported Internet Connection Download Speed Wifi Wireless not recom mended 10 Mbps Minimum Configuration Operating System Windows Vista or Windows 7 Touch screens and tablets not certified or later Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 427 CPU Intel Core i5 or higher Memory 2 GB RAM or higher Disk Space 200 MB hard drive space Graphics 512 MB Video card or higher External USB video devices are not sup ported Internet Connection Download Speed Wifi Wireless not recom mended 5 Mbps Please note that Microsoft has ended support for Windows XP and the use of this operating system is not recommended Additional information can be found on the Microsoft site Can I run StreetSmart Edge on my Mac computer StreetSmart Edge can
489. t an alert that triggers when Change from Close Increases to 30 points e Time You can set your alert or conditional order to trigger at a specific time during regular market hours or before or after a set time e Share P amp L When you use the Share P amp L variable this P amp L amount is based on the dif ference between your Original Trade Price and the current bid price if you are long the stock or the ask price if you are short For example if you purchased 100 shares of DELL at 30 and it s currently trading at 33 your share P amp L in this case is 3 points If you want be alerted or send an order to exit your position with a 6 point profit the Share P amp L would need to Increase to 6 points e Trade P amp L When you use the Trade P amp L variable this P amp L amount is based on the difference between your Original Trade Price and the current bid price times the number of shares you own if you are long on the stock or the ask price if you are short Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 57 If Referencing the example in Share P amp L above your Trade P amp L would be 300 00 If you want to be alerted or send an order to exit your pos ition with a 600 00 profit the Trade P amp L would need to Increase to 600 00 Note P amp L Alerts do not consider com missions or other transaction account costs Change delta variable that is the resu
490. t change calculation for your positions established prior to today can also be based on today s open if you have elec ted this option via your Account Settings The percentage value will be taken out to two decimal places Rounding the 2nd decimal place holder up if the third decimal is 5 and rounding down if itis 5 Shows if position is enrolled in Dividend Rein vestment Certain stocks and mutual funds pay a dividend which may be reinvested into additional shares of the security or can be paid to you in cash depending upon your instructions e Yes indicates that the corresponding secur ity s dividend is being reinvested e No indicates that no dividends are being reinvested for that security and that dividends will be paid in cash The Margin Requirements column shows the min imum dollar amount of equity you must main tain in your account maintenance requirement For option positions it shows e Maintenance Requirement The require ment is only shown for one leg of each pair ing e Quantity Number of contracts e Strategy Legs are paired to optimize buy ing power even if the positions were opened individually Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 86 Positions e Strategy sequence number Legs paired together have the same sequence number Typically the ongoing maintenance requirement for most stocks is 30 but Schwab may i
491. t key Click Save when you are finished editing hot keys Delete a Hot Key To permanently delete a hot key click the X at the end of the row in the list of hot keys you ve created Enable Disable Hot Keys To Enable or Disable ALL hot keys use the Enable All or Disable All buttons at the top of the Hot Key window To enable or disable hot keys one at a time check or uncheck the box for the individual hot key definition Changing or Canceling Orders Orders can be changed or canceled from the e Order Status tab in the Account Details window e Trade ticket in the All in One tool Trade tool or Symbol Hub e Order Status Indicators Canceling an Order e Order Status tab Click an order and click Cancel Order at the top of the window or right click on the order and select Cancel Order The software will ask you to verify that you want to cancel the order e Trade tool Cancel the last submitted order for the symbol loaded in the Trade tool by clicking Cancel Last Order e Order Status Indicator Click on the indicator and in the list of open orders that displays click Cancel for the order you wish to cancel Canceling ALL Orders You can cancel one order as described above or you can cancel all open orders Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 124 e Order Status tab Click Actions and then Cancel All Open Orders to ini tiate the cancel all To cancel all orders
492. t key and selecting a color from the color palette Apply Colors to All Charts e If you create a colorset you like and want to apply it to every chart in the application click the Apply Colors to All Charts button e The software will ask you to confirm this decision as clicking OK will overwrite all other custom chart color settings you may have established e All new charts opened will have these color settings applied by default Settings Market Hours Enter the hours you want chart data for in military time for example 1600 for 4 00 p m ET NOTE Beginning time can be no earlier than 0600 and no later than 0930 ET Closing time can be no earlier than 1600 and no later than 2000 ET Default times are for the standard session only 09 30 to 16 00 ET As extended hours quotes are only available streaming it is pos sible to have gaps in you chart if you ask for all session times i e 0600 to 2000 ET The only way to view this data consistently ona chart is to leave that chart open during Pre Market or After Hours Sessions If you switch stocks within the same chart this will gen erate gaps as the data is not presented to the chart while open Charts will not populate data for times prior to when the chart was opened regardless of the settings of the chart Price Scale Values Select Linear or Logarithmic price chart scaling e Linear scaling shows the price scale with fixed distance between each price increment
493. t or affiliates and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients amp Add studies to a chart from the Chart Settings panel on the right side of the Chart tool You can also right click in the chart and select Add Study Or for more on using studies in charts see Chart Settings Studies lt gt Get a demonstration and more information on Chart Studies Study Name Description Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 278 Last Close Pivot Point Adaptive RSI Relative Strength Index When selected with an intraday chart a line will display indicating the prior day s close price Uses the previous day high low and close price to generate a pivot line two support levels S1 amp S2 and two resistance levels R1 amp R2 This study is only displayed on Intraday charts In the studies settings right click on the study and select Edit you may check the lines you wish to view R2 R1 Pivot S1 S2 A Pivot Point lines may not be visible depending on the price scale you have set in the chart settings and the price dis crepancy between the previous and the cur rent trading day Formula Pivot Points are calculated Pivot YesterdaysHigh YesterdaysLow Yes terdays Close 3 0 S1 2 0 Pivot Yesterdays High R1 2 0 Pivot Yesterdays
494. tWallStreet tools across all open layouts PredictWallStreet PWS is a trademark of PredictWal Street LLC which is not affiliated with Schwab Schwab makes no judgment or warranty with respect to the accuracy timeliness usefulness or suitability of the information made avail able by PWS Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 348 Market Edge Market Edge is a third party web site that opens within StreetSmart Edge and provides users with the Second Opinion Weekly report The report contains analysis and opinions on individual stocks including price and volume analysis moving average and technical analysis as well as a recom mendation for action To view a symbol Enter a symbol in the Title Bar and press Enter or click Go to load the report for that symbol You can have up to 8 Market Edge windows open across all open layouts at once Tool linking Even though Market Edge contains third party information you can still link the tool to other tools in your software using the Tool Link Icon Link ing the Market Edge tool to your Trading tool for instance would automatically load any symbol you open in the Trading tool into your Market Edge tool as well For more assistance with Market Edge use the Technical Terms Explained and or the Second Opinion Weekly Quick Start links at the top of the Market Edge tool Schwab does not endorse technical analysis
495. tablished as a net debit position For use when investor anticipates e Significant movement in security price in either direction e Higher volatility Financial Characteristics e Maximum Loss Difference between lowest strike price and next highest strike price less net credit e Maximum Gain Initial net credit received Objective Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 222 e Gain from significant change in price of the underlying security either up or down by expiration EXAMPLE Short Condor Assume it is June 4th 2014 and Steve an options trader has identified XYZ as a stock that he believes will make either a sharp move higher or lower over the next month Therefore Steve decides that a Short Condor is an appropriate strategy given his outlook and the limited risk that the strategy offers XYZ is currently trading at 65 98 and Steve decides that the 65 00 and 67 50 strike Calls are appropriate middle strike since he feels the stock price will move away from these levels In addition he is comfortable with selecting 62 50 and 70 00 for the outer strike prices since he feels confident that the price of XYZ will either be below 62 50 or above 70 00 over the near term Lastly Steve selects the July expiration it is 46 days away which he feels will allow enough time for XYZ to make the anticipated move Strikes Symbol LastTrade Change Bid Ask Delta T
496. tch List 1 Add anew group by clicking Add Group Give the group a name and then enter symbols each separated by a comma and click Add The new group will display at the bottom of the list but you can drag it to a new position in the list as you wish 2 You can also adda new group by right clicking in the Watch List and select ing Insert Group The group will be added in the row above the highlighted symbol and you will be prompted to enter a name for the group From there you can either drag symbols into the group or right click on the group and select Insert Symbol 3 Right click on a group or symbols within a group to edit or delete them You can also move symbols in and out of groups by drag and drop TIP Groups can be expanded or contracted by clicking the yellow arrow next to the group name Save a Watch List e Right click on the tab at the top of the Watch List and select Save tab name e Auto Save If you don t have Auto Save enabled be sure to manually save your layout if you want your new tabs to display next time you open StreetS mart Edge e You can Save up to 20 Watch Lists in the software and you can save an unlimited number of Watch Lists to a location outside the software using Save tab name to file Open a saved Watch List To open a Watch List in a new tab right click the next to the tabs in the Watch List window then take one of the steps below Copyright 2010 2015 Charles Schwab amp
497. ted a market order guarantees execution but not price o Stop G A request to buy or sell at the market price but only when the security trades at or past a price specified Once the stock price moves to or through the stop price the pending stop order becomes a market order Stock and ETF stop orders are triggered by a trade at or through the specified stop price Once the order is activated you are guaranteed execution but there is no guarantee of the execution price Execution may occur either above at or below your stop price o Stop Limit An order that becomes a limit order once the security trades at or through the designated stop price A stop limit order instructs a broker to buy or sell at a specific price or Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 119 better but only after a given stop price has been reached or passed It is a combination of a stop order and a limit order Stock and ETF stop limit orders are triggered by a trade at or through the specified stop price o Trailing Stop amp An order whose trigger price will trail either the current inside ask if buying or inside bid if selling shorting at the time the order was submitted by the number of points or the percent you specified in the Trailing Amount field The Trailing Stop feature should not be confused with the Stop Order order type which does not trail the price but has a set stop pric
498. ted by an 8 ora 9 following the underlying security symbol In StreetSmart Edge mini options are grouped by expiration date and the non standard deliverable and multiplier are indicated in parentheses to the right of the group s expiration date Strikes Symbol LastTrade Change Bid Midpoint Ask Volume Open Int y Calls Aug 1 2014 Weekly Adjusted 10 AAPL 0 00 Cash 10 Multiplier Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 188 You can also view the contract specifications by clicking the arrow next to option symbol 7 Calls Aug 1 2014 Weekly Adjusted 10 AAPL 0 00 Cash 10 Multiplier AAPL7 08 01 2014 95 00 Call 0 00 BATS 2 45 80 PCX 5 75 PCX 2 45 50 BATS 5 75 Open 0 00 Multiplier 10 AMEX 6 10000 High 0 00 Contract Size 10 AAPL Low 0 00 Cash In Lieu 0 00 Prev Close 3 75 Undertying Value 983 80 Volume 0 Style American Open Interest 97 Type Equity Days until Exp 4 Settlement P M Volume by AMEX BATS BOX GEM ISE NOM PCX PHLX Exchange 0 0 0 0 0 0 0 0 If you do not wish to view mini options in StreetSmart Edge you can hide them using your adjusted option display settings since mini options have a non stand ard deliverable and multiplier they are treated like adjusted options These set tings can be found in the Actions drop down under Trade Ticket gt Trade Ticket Settings Global
499. th the symbols you ve entered TIP You may display up to 4 Momentum tools with up to 4 tabs in each You can also save up to 20 tabs to the software but save as many as you wish to a local hard drive using the Save as File feature Streamlining the Momentum tool To conserve space click the streamlined view icon which collapses the tab row and hides the Actions menu While in streamlined view access hidden tabs through the Tabs dropdown To switch back to standard view click the view icon again Name or Rename a Momentum List 1 Double click on the tab name You can also right click on the tab name and select Rename tab name 2 The name field becomes highlighted and editable and you can type a new name 3 Press Enter to finalize the new name TIP You can also rename one or more saved Momentum lists by right clicking on the tab name and selecting Manage Saved Momentum Lists Click the pencil icon _ next to the list you wish to rename Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 339 Adjust Color Settings 1 From the right click or Actions menu select Colors 2 Inthe Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to the original col ors TIP Check Apply to all Momentum tabs at the bottom of the Colors window if you want the col
500. that if you manually close part of a position with an associated bracket order the Bracket quantity may not match the position Quant ity shown in the Positions tab Because bracket exits are designed to reduce the closing order to the net tradable position your bracket order quantity should reduce in size upon the bracket order triggering The Margin Requirements column represents Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 372 Positions the minimum dollar amount of equity you must maintain in your account maintenance require ment For option positions it shows e Maintenance Requirement The require ment is only shown for one leg of each pair ing e Quantity Number of contracts e Strategy Legs are paired to optimize buy ing power even if the positions were opened individually e Strategy sequence number Legs paired together have the same sequence number Typically the ongoing maintenance requirement for most stocks is 30 but Schwab may impose higher maintenance requirements on cer tain securities that are low priced thinly traded volatile or which pose heightened risk Special maintenance requirements are set at Schwab s discretion and are intended to reflect a stock s volatility and to ensure that your account maintains sufficient equity to cover large price movements Some stocks are so volatile or illiquid that they cannot be margined
501. the pipe delimiter symbol 2 Select an Expiration date The default is the current day but you can set alerts to expire up to 60 days out Type in a date or click on the calendar to select a date 3 If you want the alert to only last for the current market session check Day Alert TIP Active alerts remain active even when you log off They only deactivate if they expire or are day orders and the market closes or are triggered 4 If you wish to use a template to automatically fill in portions of the alert select it from the Templates drop down and click Load For more on using templates see Alert Templates 5 Now set up the Conditions for your alert For more information about each of the choices available when setting up your alert conditions see Alert Conditions 6 Choose how the software will alert you when your conditions are met by clicking View Notifications You can either choose the default notification settings or set up one time only notification settings For more information visit Alert Notifications 7 ASummary of your alert displays below the Conditions panel showing what the alert will do and when 8 Once your alert settings are to your liking you can either choose Activate Alert Save as Template and or save as a template to a file fy 9 If you want to start over click Clear Otherwise to take no action and close the Create Alert window click Cancel Alert Alert amp Conditional Order Conditions
502. the contract you want to trade You may display up to 8 All in One Trade tools across all open layouts with up to 8 tabs in each tool Trade tool The original StreetSmart Edge order routing interface with tabs for Stocks amp ETFs Options and Conditional Orders The Trade tool is designed to put import ant information at your fingertips to help you act on a security s most relevant up to date data You may display up to 8 Trade tools across all open layouts Symbol Hub You can also place trades from the Symbol Hub a one stop shop for trading quotes charts news and research You may display up to 8 Symbol Hub tools across all open layouts lt gt For a demonstration and more information on Trading and Quotes visit the Training page TIP You can also initiate trades by selecting Trade symbol in the right click menu or from the Actions drop down in many windows where a symbol is displayed This includes the Positions and Order Status tabs of the Account Detail tool Watch Lists Screener Hub News tool and more Equity Quotes amp Trading The Stocks amp ETFs tab shows streaming Level I Market Depth and Time amp Sales and the Trade tool and Symbol Hub also show News updates if you wish to aid in decision making Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 108 e For more information see Stocks amp ETFs Tab Features e For more on equity
503. the shorter crosses above the longer This technique of using two moving averages together typically lags the market a bit more than a single moving average Cup and Handle Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 394 A pattern on a bar chart The pattern can be as short as several weeks and as long as a year The cup is in the shape of a U and the handle has a slight down ward drift Cyclical Stocks Cyclical stocks are shares of companies with businesses that are highly sensitive to economic performance Cyclical stocks tend to perform well under certain eco nomic conditions and suffer during others AIBICIDIEIFIGIHILIIJITKILIMINIOITPIQIRISITIUIVIWIX me Daily Range The difference between the high and low during one trading day Day Order An order condition that causes your order to be canceled at the end of the cur rent day s trading if the order has not been executed All Market Orders are auto matically Day orders Orders are generally considered to be day orders unless otherwise specified Day Trading Day trading is a style of trading where positions are both initiated and closed before the end of the trading day Compare this to position trading where stocks or securities may be held for longer periods Derivative Instrument A financial instrument or security whose value is based in part upon another security For example a stock option is a derivative instru
504. the Daily Low i e if the stock s 52 week low is 7 and the daily low is 8 this column will show a 1 The trading range for the current day i e the dif ference between High and Low Difference between the daily High and the Last Trade as a percentage of the Trading Range for Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 326 Price Performance Chg of Range from Low Relative Strength SMA 15 Day Last Trade High Last Trade Low Last Trade Metrics P E ttm P E Ratio Latest Actual P E Ratio Estimated Relative P E Ratio Price Book Ratio P S Ratio Dividend Payout Ratio the day Difference between the daily Low and the Last Trade as a percentage of the Trading Range for the day Measures each stock s price performance com pared to all other companies in the S amp P universe on a rolling 13 week basis The difference between the 15 day Simple Mov ing Average value and the Last Trade expressed as a percentage The difference between High and Last Trade The difference between Low and Last Trade Ratio of a company s previous close to earnings over the last 12 months Ratio derived by dividing closing stock price by most recent actual fiscal year earnings per share Negative P E ratios are not considered meaningful and are therefore not displayed Ratio derived by dividing closing stock price by lat
505. the amount a security s price has from Close 60 Day changed over the last 60 closes Money Flow Money Flow keeps a running total of the money flowing into and out of a security The direction of the Money Flow line is an important com ponent to watch not the actual dollar amount This unit can be used to confirm underlying strength or weakness of a price trend Money Flow Percent Money Flow Percent is also called Chaikin Money Flow It normalizes the Money Flow calculation above by dividing the cumulative volume for the period Williams R Measures the percentage to which a stock is overbought or oversold based on the position of the current period s close to the range of prices over a period of time General Notes If a symbol in the Screener tab has a note asso ciated with it in the Notes tool the Notes icon will display Click the icon to see the note s Schwab does not recommend the use of technical analysis as a sole means of investment research Options carry a high level of risk and are not suitable for all investors Certain requirements must be met to trade options through Schwab Multiple leg options strategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request High Low The High Low tool shows stocks breaking through d
506. the graphical depiction of each period in a candlestick Each candlestick is formed using the open high low and close of a specific time period The period can be anything from a minute to a month The color of the candlestick is determined by the rela tionship between the open and close If the close is higher than the open a white or green real body is formed If the close is lower than the open a black or red real body is formed If the close and open are the same it will be a cross The thin lines above and below the real bodies represent the high and the low for the period and are referred to as shadows The high for the period is the upper shadow and the low is the lower shadow It is these shadows which look like wicks on a candle that give rise to the term candlestick Capital Gain The difference in value between what you originally paid for an investment and the price at which you sold assuming the investment gained in value Cash Account This type of brokerage account requires that you pay for trades in full by the set tlement date Cash Secured Equity Put CSEP A CSEP consists of any number of short uncovered put options written at a strike price lower than the stock s price and where the investor must maintain cash or cash equivalents in his account equal to the total amount of the potential assign ment in the event the put expires in the money or is exercised by the owner of the put Channel A channel
507. the left mouse button and hold it to grab the edge of the layout While con tinuing to hold down the left button move the mouse until the window is the appropriate size To move a tool left click and hold it at the top of the window Drag the window to where you would like to see it within the layout To add tools to an existing layout first click on the layout tab to select the desired layout Next click on Launch Tools drop down but ton on the right side of the screen near the top The tool selector will appear to allow you to select a tool After a tool has been selected it will appear in the center of the currently selected layout Drag the tool by the top bar to the desired loc ation within the layout Resize the tool by dragging the edges or corners To drag put your mouse over the top bar or over the edge or corner until arrows appear hold down the left mouse button drag Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 12 I would like to try StreetSmart Edge but don t want to use it to trade yet Is there a demo version What resources are available to me for assistance with StreetS mart Edge I have questions that aren t answered here the pointer to the desired position then release the left mouse button Yes you can start out using the Demo Mode which is available every time you log into StreetSmart Edge Demo Mode will allow y
508. the pay date from the period covering the most recent 5 fiscal years Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the most recent fiscal quarter Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the 2 most recent fiscal quarters Rate of return representing the price appre ciation of a stock with cash dividends reinvested on the pay date from the period covering the 3 most recent fiscal quarters Net income including discontinued operations but before extraordinary items expressed as a of common shareholders equity for the most recent fiscal year Generally used as a measure of management effectiveness Net income including discontinued operations but before extraordinary items expressed as a of total assets for the most recent fiscal year Used in industry analysis as a measure of asset use efficiency Indicates the volatility of a stock s price with dividends reinvested relative to the overall mar ket The S amp P 500 stock price index is used as a benchmark for the overall market A beta greater than 1 0 indicates higher volatility rel ative to the overall market Number of times a new High has been reached today Number of times a new Low has been reached today Highest price the stock has traded in the pre vious trading day Copy
509. the ratio of the average up closes for the last 50 days not including today if prior to close divided by the sum of the average up closes and the average down closes for the same period This ratio is multiplied by 100 Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 330 Technicals DM DI Positive 14 Day DM DI Negative 14 Day DM DX 14 Day DM Average ADX 14 Day K D D Slow The basic Directional Movement trading system involves comparing the 14 day DxX Dir ectional Indicator and the 14 day DX This can be done by plotting the two indicators on top of each other or by subtracting the DX from the DX The study indicates buying when the DX rises above the DX and selling when the DX falls below the DX The basic Directional Movement trading system involves comparing the 14 day DxX Dir ectional Indicator and the 14 day DX This can be done by plotting the two indicators on top of each other or by subtracting the DX from the DX The study indicates buying when the DX rises above the DX and selling when the DX falls below the DX The Directional Movement study indicates the strength of a trend independent of whether that trend is up or down The study combines several components DX measures upward moves DI measures downward moves DX combines DX and DX and ADX is a smoothed version of DX Assesses the
510. the underlying security Advance Decline AD Line The Advance Decline AD line is the cumulative total for the difference between the number of advancing stocks and the number of declining stocks in a given market The AD line for the New York Stock Exchange NYSE is the most widely used measure of market breadth If there are more advances than declines the AD is a positive number if there are more declines the AD number is negative That daily number is added to the cumulative AD line The AD line gives us inform ation on whether the majority of stocks are following the trend of the commonly followed stock indices All Money In reference to Advanced Options all pairings for the specified strike range excluding leaps All or None AON An All or None AON order directs the broker to attempt to fill the entire amount of an order or none of it during the time limit specified AON orders do not require immediate execution and are only applicable to limit orders American Depository Receipt ADRs are securities issued by commercial banks that represent the shares of a foreign company Generally speaking a foreign company will deposit a certain amount of shares with a US commercial bank The bank will then issue a security Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 389 based on a specific number of shares ADRs trade just like domestic stocks on various US stock exchanges h
511. time e is later than alert or order will only trigger after this time Notes about the Gains and Loses operators e The Gains and Loses operators initialize from the moment the alert or conditional order is activated So if you create an alert or order that triggers when the Bid gains 1 point the alert or order uses the Bid at the moment you activate the it as the starting point e Alerts or conditional orders using the Gains or Loses operator will reinitialize or reset each day based on the inside bid ask at opening For example an alert or order is set to trigger if the symbol loses 5 percent off the ask price If the alert or order does not fire on the first day it is active it will reinitialize the next day to the market opening value and reset the trigger price e If you wish to set a percentage Value or use a Trailing Stop you must use Gains or Loses as your operator Value The amount by which you want the variable to change e For Time enter the time you wish to set your alert or order to trigger at before or after The Variable and Operator you choose will change your available options for these fields Points o or Shares Cost Displays the original trade price for your position if Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 253 If Trailing Stop And Or available If unavailable or you want to change the cost value
512. tion positions The calculation is based on the gain or loss for your positions since the previous mar ket close Marked to market or your cost if pur chased today It includes estimated commissions on positions established today Please note that the change calculation for your positions established prior to today can also be based on today s open price if you have elected this option via your Account Settings Today s percent gain or loss for your equity and option positions expressed on a per share or per contract basis The calculation will be based on the gain or loss for your positions since the pre vious market close Marked to market or your cost if purchased today It includes estimated commissions on positions established today Please note that the per share or per contract change calculation for your positions estab lished prior to today can also be based upon today s open if you have elected this option via Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 85 Positions Day Chg P amp L DRI Margin Requirements your Account Settings Today s percent gain or loss for your equity and option positions The calculation is based on the gain or loss for your positions since the previous market close Marked to market or your cost if purchased today It includes estimated com missions on positions established today Please note that the percen
513. to 32 00 at or before expiration An increase in volatility could produce a profit for the investor prior to expiration in some circumstances The investor will profit if the stock goes up more than 7 00 share or falls more than 7 00 share Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 211 Short Strangles Investors using the short strangle strategy anticipate that the underlying secur ity of the options will trade in a range and that larger movements in either dir ection are unlikely A short strangle will typically therefore involve the simultaneous sale of both call options and put options with the same expiration date but different strike prices typically out of the money The investor receives the premiums for the calls and puts and hopes that at expiration neither the calls nor the puts will be more in the money than the total premium received The strategy exposes the investor to unlimited losses with the pos sibility of only limited profits The investor might also sell a strangle using strikes that he she expects the underlying security to move between by expiration For use when investor anticipates e Flat Neutral market for the underlying security e Decreased volatility Financial Characteristics e Maximum Loss Unlimited e Maximum Gain Premiums received in the transaction e Benefits from time decay Objective e Speculative income generation EXAMP
514. tocks amp ETFs tab and selecting Trade Ticket Settings See more on the Notifications Equity Hot Keys Order Quantity and Condi tional Orders Alerts settings tabs found in the Trading tab Here you can control order verification commissions on estimates and more Trade Settings Order Veri Check to enable order verification before placing or can fication celing an order This will give you a chance to review the details of your order before you send it as well as dis playing any notifications or errors resulting from the order settings You may also choose to add a Bracket to your order by Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 131 Trade Settings Order Action Selection Price Incre ment Auto Cancel ECN NSDQ Cancel But ton Selec tion clicking on the Set Exit Strategy button Please note that there is a 10 minute time limit to place your order once the Order Verification window has been opened If the Order Verification window has been open for longer than 10 minutes and you wish to place an order close the window and place a new order IMPORTANT If you turn off Order Verification your orders are immediately submitted without a verification screen So you will not have the opportunity to review the terms of your order prior to entry and will not see warn ing or informational messages related to your orders By unchecking this feat
515. tocks or indices Keep Use Symbol Auto Complete checked if you want the software to offer suggestions to choose from as you re typing a symbol For instance if you type AA all the symbols that start with AA will display Arrow down to the one you want and press Enter or you can click on the symbol with your mouse Unchecking this setting will stop the symbol sug gestions from displaying Animations Quick Launch When Change background color of grid cells to show tick direction is checked the soft ware will display a red or green background behind price values to indicate whether the stock is on the downtick or uptick respectively Check to improve initial application startup per formance Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 33 Display Themes Light Dark Sounds Choose between a light or a dark background theme You can toggle between the Light and Dark choices and see how the change will affect your layout before adopting the change by click ing Save Changing your display theme will not override custom colors in individual tools Events Account Settings Click on the event you want to assign a sound to Login Logout Live Order Entered Order Filled Order Cancelled Click Browse to select an audio file to use for the selected event The software comes with sev eral sounds from which to choose or you ca
516. trading right at your fingertips To customize your Level I display 1 Right click in the Level I area of the Trade tool and select Level I Settings or left click on the El icon within the All in One Trade tool to begin making changes 2 Choose from the available columns listed below and arrange them according to your preferred location 3 Choose where to apply the settings changes by selecting Apply to this Trade tool Instance or Apply to all Trade tools Instances at the bot tom of the setting window 4 Click OK when you are finished Level I Columns Change Change from Today s Close Change from Today s Open Change from Yesterday s Close Ask Ask Size Bid Bid Size Previous Close High Last Trade Price Percent change from close Change from close Change from open Change from yesterday s close Inside ask price Number of shares at the inside ask Inside bid price Number of shares at the inside bid Closing price from previous market day s session Highest price at which the security has traded for the day Last trade price for a stock and the last Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 127 Level I Columns value for an index Low Lowest price at which the security has traded for the day Open Opening price for the day Put Call Ratio Open Calculates the Put Call ratio by dividing the
517. trailing stop then an order would be triggered and the position closed As long as the price remains above the trailing stop the position is held Trend Trend refers to the direction of prices over time Rising peaks and troughs con stitute an up trend while falling peaks and troughs constitute a down trend Trends are generally classified as major longer than a year intermediate one to six months or minor less than a month Trend Line Trend lines are created by joining significant highs and lows on a price chart An up trend line connects a series of higher lows while a down trend line connects a series of lower highs An internal trend line can also be drawn to best approx imate the majority of relative highs or relative lows without any special con siderations given to extreme price points Triangles Triangle patterns are sideways patterns in which price fluctuates within con verging trend lines The three types of triangles are the symmetrical the ascend ing and the descending A symmetrical triangle occurs when prices are making both lower highs and higher lows An ascending triangle occurs when there are higher lows as with a symmetrical triangle but the highs are occurring at the same price level due to resistance The odds favor an upside breakout from an ascending triangle A descending triangle occurs when there are lower highs as Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Mem
518. trategies will involve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Supporting documentation for any claims or statistical information is available upon request Creating Custom Screens Create stock screeners to help you identify stocks that meet certain criteria from price to volume to fundamentals and analyst ratings StreetSmart Edge provides several Predefined Screens which you can customize to your needs or you can create new custom screen Custom and predefined screens can both be found in the Screener Plus tool Read more about managing screens in the Screener Plus tool Create a New Screen 1 Open a new screen by clicking New Screen in the Actions or right click menu of the Screener Plus tool or by clicking the next to the row of tabs at the top of the tool 2 The tab of the new screen becomes editable so you can give it a name You can rename a screen later by right clicking on the tab and selecting Rename 3 Each screener tab has a Criteria and Results sub tab Click the Criteria tab to choose the parameters for your screen 4 Six types of data are available for use in your screen Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 313 o Basic Price and volume data o Analyst Ratings Schwab Equity Ratings as well as aggregated rat ings o Company Performance Revenue earnings an
519. u can also click between the sliders and drag the act ive area left and right across the timeline to change the dates but keep the same overall length of time dis played e Quick Jumps Above the History Control are time frames in a range of unit sizes The choices depend on the Type of chart you are displaying Click any of those time periods to display only that period on the chart This will also adjust the Sliders along the timeline to your selected time frame Max 3y o YTD 6m 3m im e Date Selection You may also just type or choose from the calendar the start and end dates for which you want to isolate chart data shown Click Go or press Enter to apply the date selection e Number of Days Enter the number of days years minutes you wish to view and click Go or press Enter Additions or subtractions to this number either by typing a number or using the up down arrows will be added to or taken from the start date The end date will not change TIP You can hide the History Control via the Chart Settings panel Under Settings uncheck Show History Control The Year Spans Date Selection and Number of Days remain visible Chart Tasks The Chart window has two right click menus that give you access to most tasks you might want to perform around your charts including access to the same fea tures found in the Chart Settings Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 26
520. u must meet Otherwise the account s day trading buying power will be frozen until the margin call is met or the account is switched to a cash account Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 142 Direct Access Order Routing Direct Access Eligibility Direct Access order routing is available to eligible clients who want more control over the routing of their orders Direct Access trading entails certain risks and responsibilities As a result we have established the special eligibility require ments for Direct Access Trading These eligibility requirements will be posted on the StreetSmart Edge Center of Schwab com in the section called Direct Access Direct Access Routes During the specified trading times for each venue Direct Access allows you to enter buy and sell orders for NASDAQ Listed and OTC stocks The table below shows a list of all the action types allowed with Direct Access Action Types Buy Sell Short Cancel Cancel All The change order function is not accepted when routing orders via Direct Access Each venue has different order types hours of operation and order conditions The table below shows a quick reference guide for each destination Order Type of Hours of Order Order Secur Destin Channel Oper Types Condi ity ation ation tions Types Eastern Traded Time ARCA ECN 7 00 a m Limit Day IOC NNM Lis NYSE 8 00 p m
521. um value of 180 seconds for ECN NSDQ orders it is very possible not to complete an order in under three minutes depending upon the symbol market venue order type and conditions Commissions will be based upon the price and number of shares filled on each order To change the Auto Cancel timeout setting go to the Trading tab under Set tings in the main menu Order Status All orders and executions can be viewed in the Order Status tab of the Account Detail tool If there was more than one fill a break down will display when you click the Order Detail button Close All When selected in the trade ticket Close All allows you to sell your entire pos ition including fractional shares via the Smart Schwab Pre Market or Schwab After Hours venues Direct Access venues do not offer fractional share trading As the quantity field does not allow the input of fractional shares using Close All is the only way to send orders to sell fractional share amounts When Close All is checked e The Quantity field displays the full share amount available for sale includ ing fractional shares This quantity takes into account any open orders that Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 140 you may have and any shares held that are currently non negotiable This amount cannot be changed when Close All is checked e If you uncheck Close All you can adjust the quantity but fractional sha
522. ur keyboard or click Go You can also choose from recently loaded sym bols by clicking the down arrow in the symbol field Copy amp Paste for Symbols For option sym bols rather than having to type the full symbol in you can right click on a symbol in the Option Chains and select Copy Then right click in the Symbol field and select Paste to load the sym bol For more on the copy and paste functionality see Copy and Paste Option Symbols Quote Shows the last trade price Tick Shows whether the security is up or down for the day Change Change Shows the change in price from previous close Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 115 Title Bar Features Description Shows the company or index name Exchange FSI Codes Hard to Borrow HTB Regulatory Circuit Breaker RCB Shows the exchange on which the security trades A letter after the security name is the Financial Status Indicator FSI FSI Codes C Creations and or Redemptions suspended for Exchange traded product D Deficient Issuer failed to meet Exchange con tinued listing requirements E Delinquent Issuer missed regulatory filing deadline Q Bankrupt Issuer has filed for bankruptcy G Deficient and Bankrupt H Deficient and Delinquent J Delinquent and Bankrupt K Deficient Delinquent and Bankrupt Stocks that may be difficult to borrow for short ing purposes w
523. ur new tabs to display next time you open StreetS mart Edge e You can save an unlimited number of High Low tabs to a location outside the software using Save tab name to file Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 335 Open a saved High Low Tab To open a High Low tab in a new tab right click the next to the tabs and then take one of the steps below e Open tabs created in or provided with StreetSmart Edge by selecting one of the choices in the Open High Low tab from menu item e Open a High Low tab that has been saved to a file by selecting Open High Low tab from File then find the file where it is saved on your com puter Select the file and click Open Name or Rename a High Low Tab 1 Double click on the tab name You can also right click on the tab name and select Rename tab name 2 The name field becomes highlighted and editable and you can type a new name 3 Press Enter to finalize the new name Adjust Color Settings 1 From the right click or Actions menu select Colors 2 In the Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to the original col ors TIP Check Apply to all High Low tabs at the bottom of the Colors window if you want the color settings to apply to all High Low tabs Adjust Font Setting
524. ure you accept the associated risks of trading without an Order Verification window and mes saging You can specify what the software does to the Action selec tion after you ve placed an order or entered a new symbol You can choose to Clear Action Maintain Action or Set Action to Close if the symbol has an open position Stock ETF Calls Puts Conditional Orders 2 Actions v Action Quantity s Venue Order Type Limit Price Timing Buy Sell z Short C ers Brackets Special Cond Review Order Or you can choose to view the Action selections as buttons by choosing Use Trade ticket with Order Action but tons Stock ETF i Calls Puts Conditional Orders 2 Actions v Quantity s Venue Order Type Limit Price Timing Brackets Special Cond Buy Sell Short Controls the increase or decrease in price when using the up down arrows for the price fields in the Trade Ticket The number of seconds that direct ECN amp NSDQ orders are live before the system auto cancels them A value of 0 dis ables auto cancel The Auto Cancel is disabled by default You can specify whether the Cancel button within all Trade tools will cancel the last submitted order for the current symbol or cancel all equity orders for the current symbol Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 132 Trade Settings
525. urities Products in those sessions may be at a disadvantage to market professionals Direct Access Trading During Extended Hours With Direct Access you can send orders for NASDAQ equities direct to ECNs Unlike orders sent to Schwab for execution direct access orders sent during the extended hours can remain on the ECN s book for all sessions if you have changed your ECN Auto Cancel setting to zero This means they will not be outed or canceled at the end of the Pre Market session nor at the end of the standard trading session ECNs have one trading session which lasts from the time they open for business until their designated closing time NOTE Listed securities participating in the extended hours sessions and all short sales will continue to be routed using Schwab s Extended Hours offerings Risks of Extended Hours Trading Extended Hours Trading Sessions may not be suitable for all investors since they pose certain risks including but not limited to lower liquidity changing prices Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 135 news announcements higher volatility and wider spreads Extended Hours Trading Sessions do not take place on official Exchange holidays or when the Exchanges close early Schwab reserves the right to change or modify the hours of operation at any time A Schwab Extended Hours Trading Ses sion or any security traded therein may be tempora
526. urity the sale must occur on or before the purchase date to avoida liquidation violation Depositing marginable securities to cover funds due is only possible ina margin account not a cash account Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 69 NOTE For most equity transactions the settlement period is three busi ness days from the day your order executes What is a liquidation violation This trade violation is the result of buying a security which creates a Cash Account debit or Margin Account Fed Call and then covering the amount due by selling another security the following trade date or later Example Day 1 100 settled credit Day 1 Buy 100 ABC 10 Day 3 Sell 100 XYZ 20 The purchase of ABC results in a 900 debit balance Two days later XYZ is sold but payment was not made for the ABC purchase The sale of XYZ results ina Liquidation Violation If an option or mutual fund is sold the day after a stock is purchased a liquidation violation will be charged even if the proceeds settle on or before the purchase set tlement date Subsequent liquidation violations in a rolling twelve month period will result in the account being restricted to Settled Cash Up Front for 90 days In addition a permanent Settled Cash Up Front restriction will be placed on the account after five or more trade settlement violations within the life of the account To avoid a liquidation
527. ustom Number order right click on the tab name and select Reorder Sym bols Type of security e Eqty Equity e MF Mutual Fund e MMF Money Market Fund e Indx Index e Bnd Bond e Call Call option e Put Put option The unique 1 5 characters used to represent the security Symbols are defined by the different markets or exchanges Sometimes a security might not have a symbol in which case an internal Schwab reference will be used Shows the change for the day Change from Pre vious Close to Last Trade Updates until Market Close Current inside Bid price Current inside Ask price Highest price the security has traded at for the day Lowest price the security has traded at for the day Number of shares contracts the security has traded for the day Price of last trade Percent change from Previous Close to Last Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 366 Quote Data Open Last Time Last Size Prev Close Chg Open Chg Open Ask Size Bid Size Ending Ask Ending Bid Ending Mid Midpoint Company Info News Icon Description Sector Industry Trade Updates until Market Close Opening price for the day Time of last trade Size of last trade Closing price from previous market session Change from Open to Last Trade Percentage change from Open to Last Trade The quoted size of t
528. ved from the calculation but are given less Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 288 Volume Weighted Aver age Price VWAP weight Best used in trending markets The initial value of an n day OMA is the same as the initial value of an n period SMA indicator Subsequent values are determ ined using an inductive formula in the man ner of the EMA described above Formula The formula for the initial value of OMA is t X Price O int n l MA EE The formula for subsequent values is OMA n OMA OMA _ Price n Measures the average price of a stock over a given period of time VWAP is calculated by adding up the dollars traded for every transaction price multiplied by number of shares traded and then dividing by the total shares traded for the day Note that intraday charts will calculate the VWAP across the entire chart whereas other charts will only display the current VWAP value Average True Range Measures a security s volatility by aver aging the True Range over a period of time you specify when setting up the study True Range is the greatest of the following e The current high minus the current low e The absolute value of the current high less the previous close e The absolute value of the current low less the previous close Customizable default of 14 periods Formula The ATR formula is an exponential average o
529. ver the edge or corner of the tool until you get a double arrow then click and drag until it s the size you want e Moving Tools Move tools by clicking in the title bar of the tool and drag ging it to another spot in the layout Edges of the tools are magnetic and will snap together when they are placed close to another tool Advanced Layout Tips Multiple Monitors The primary StreetSmart Edge window can be stretched across multiple monitors to create a larger layout however you can also undock layout tabs from the primary window and let them stand alone on dif ferent monitors This allows you to view multiple layouts at once Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 21 e Todo this click on a tab and drag it out of the primary window You ll see the layout shrink while you move with your cursor to another location When you let go it will expand into its own independent window More Drag amp Drop Much like individual layout tabs can be dragged out and dropped as independent windows you can also create a new independent layout tab by clicking and dragging a tool out of the primary StreetSmart Edge dis play When you drop it a new layout tab will be created You can have multiple layout tabs in the independent window by clicking the next to the layout tab Streamlining Layouts Layouts outside the primary display can be streamlined by clicking the gm icon located
530. vidual price fluctuations while longer term averages are less sensitive Moving Averages include Simple Moving Average SMA The simple moving average is the most widely used moving average and is constructed by simply totaling a set of price data and dividing the sum by the number of observations SMAs give equal weight to each price data input Exponential Moving Average EMA The exponential moving average is similar to the SMA only it uses a smoothing factor to give more weight to recent prices while at the same time allowing all price data to influence the average By putting more weight on recent price data the EMA reduces the time lag and reacts more quickly to recent price changes Moving Average Convergence Divergence MACD The Moving Average Convergence Divergence is a trend following momentum indicator that shows the relationship between two moving averages The MACD line is calculated by taking the difference between a longer period and shorter period moving average typically 26 day and 12 day respectively It is the inter action of these two moving averages that gives the indicator its name as over time the two are constantly converging and diverging A signal line is also used which is typically the 9 period moving average of the MACD line Exponential moving averages are typically used for both the MACD and Signal calculations because they tend to respond more quickly to changes in price Moving Average Convergence
531. violation see How do I cover my trades above What is a cash account An account in which the client has to pay for all trades in full by settlement date What is a freeride violation A freeride violation is the result of buying a security in a Cash Account and then selling the same security without making separate payment on the full purchase price by settlement date To avoid a freeride violation you must settle your buy order independently of selling the same security Example Day 1 100 settled credit Day 1 Buy 100 ABC 10 Day 3 Sell 100 ABC 15 The purchase of ABC creates a 900 debit balance ABC is sold but full payment was not made for the ABC purchase The sale of ABC therefore results ina freeride and immediate 90 day settled cash up front restriction Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 70 Example Purchasing 300 shares of ABC and selling it 3 days later without paying for it is considered to be freeriding After one freeride a 90 day Settled Cash Up Front restriction is placed on the account A permanent Settled Cash Up Front restriction will be placed on the account after five or more trade violations over the life of the account What is a Good Faith Violation A good faith violation is the purchase of a security with unsettled funds and sub sequent sale of that security before the proceeds funding that purchase have settled Example Day
532. volatility the bands widen during volatile price action and contract when the trad ing range tightens The Middle line of a Bollinger Band is a simple moving average The Top and Bottom lines are placed n standard deviations above and below the centerline Since standard deviations are a measure of volatility the bands widen during volatile price action and contract when the trad ing range tightens Trend following momentum indicator that uses three exponential moving averages a short or fast average along or slow average and an exponential average of their difference the last being used as a signal or trigger line Typically used in conjunction with the MACD indic ator above Measure the amount that a security s price has changed over the last 20 days If today hasn t closed yet it uses current price for today s close Measured the amount a security s price has changed over the last 20 closes Measure the amount that a security s price has changed over the last 40 days If today hasn t closed yet it uses current price for today s close Measured the amount a security s price has changed over the last 40 closes Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 332 Technicals Momentum 60 Day Measure the amount that a security s price has changed over the last 60 days If today hasn t closed yet it uses current price for today s close Momentum Measured
533. volatility between Received lowest and next lowest strike prices Net Premium Received Bullish Bearish Net Middle Loss and high rising Premium Strike volatility Paid Price Lowest Strike Price Net Premium Paid Bullish Bearish Net Dif Loss and high rising Premium ference volatility Paid between lowest and next lowest strike Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 194 Strategy Sub For use when Financial Characteristics Strategy view of stock z ie Max Loss Max Gain Chan ge in valu ein tim e prices Net Premium Paid Collars Bearish Pro Stock Suigh Vari tective Price Stock able igggte Pet Net Net Premium Premium Cal Debit Moderate Net Unlimited Gain endar Spreads Bullish Premium Et Spreads Paid xxx Credit Moderate Bear Unlimited Net Loss Spreads ish t Premium Received Rollout The strategic and financial characteristics of Rollouts can vary greatly depending on the specifics of the order Buy Buy Write Neutral to Purchase Strike Gain Write Bullish Price of Purchase and Stock Price Unwind Premium Premium Received Unwind N A N A N A N A Sell Sell Write Neutral to Unlimited Short Sale Gain Write Bearish Price and Premium Unwind Strike A Unwind N A N A N A Custom The strategic
534. volve multiple commissions Please read the options disclosure document titled Characteristics and Risks of Standardized Options Member SIPC Vertical Put Spreads A strategy consisting of the purchase of a put option with one expiration date and strike price and the simultaneous sale of another put with the same expiration date but a different strike price Depending on whether the purchased put has a higher or lower strike than the sold put a vertical put spread can generally be profitable if the underlying stock or index rises a bull vertical put spread or falls a bear vertical put spread sufficiently Bull Vertical Put Spread Similar to the Bull Call Spread the Bull Put Spread strategy may allow the investor to profit from an upward movement in the underlying security To utilize this technique the investor sells puts at one strike and buys puts at a lower strike that share the same expiration date The high strike puts have higher premiums than the low strike puts As a result the investor will receive a net inflow of capital since the price of the options sold exceeds the price of the options purchased Consequently bull put spreads are often referred to as credit spreads To achieve maximum profit the underlying security price must Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 240 rise above the strike price of the short written put at expiration rendering both
535. well as providing a variety of Predefined Screens Screener Plus integrates 3 tools that used to be separate in StreetSmart Pro e Stock Screener e Sectors See more on the Sectors screener tab which has different columns and settings than other tabs e Top 10 lt gt Get a demonstration and more information on the Screener Plus tool Each screener has two sub tabs showing the Criteria used to generate the screen select View Description from the Actions or right click menus to quickly read the screener description and the Results of the screen TIP You may display up to 12 Screener Plus tools with up to 20 tabs in each You can also save up to 20 tabs to the software but save as many as you wish to a local hard drive using the Save as File feature e Creating a New Custom Screen Start a new screen by clicking the to the right of the screener tabs or by selecting New Screen from the Actions or right click menus For step by step instructions on creating a new screen see Creating Custom Screens e Open a Predefined Screen There are several different ways to open a predefined screen o In the left side panel click the arrows to drill down through the pre defined screener categories Double click the name of a screen to open it ina new tab o Click the Actions button and select Open Predefined Screen then select the screen you want to open o Right click any tab and select Open Predefined Screen Copyright 2010 20
536. window InPlay Features live analysis news earnings coverage Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 384 Short Stories Story Stocks Tech Stocks Stock Market Update Daily Sector Wrap and analyst upgrades downgrades including Brief ing com s economic coverage and commentary Brief synopses of key analyst upgrades down grades and new ratings published live before mar ket open each trading day Live updates to news and earnings analysis on individual companies and stocks during current trading session More in depth news and analysis around tech nology stocks published daily U S and international market updates approx imately every half hour starting at 6 a m ET with foreign market and U S futures summaries Daily post market reporting and analysis of sec tor performance across the U S markets Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 385 Resources Notes The Notes tool is a trading journal that can help you keep track of information you need to refer to while you trade Think of it as moving your sticky notes into your computer Whether you keep notes about the market corporate events trading opportunities positions ideas for later or anything else the information you want is at your fingertips in StreetSmart Edge amp Manage and create notes from the Notes tool
537. window type your question and the representative will respond in real time Note Live Help Hours are Monday Friday 8am 6pm ET closed market hol idays Sending Messages 1 In the Main Menu click Help gt Live Help or click the bal icon 2 Type in the message under Enter Message 3 Click Send 4 To clear previous messages click Clear Conversation 5 Click Close to close down the box NOTE It is important that you do not use the Live Help window in the Schwab trading platforms to request authorize or effect the purchase or sale of any security or commodity to send fund transfer instructions or to effect any other transactions Any such requests orders or instructions that you send will not be accepted and will not be processed Training The links below offer more hands on training in the use of StreetSmart Edge by incorporating demonstrations and audio Click the links to learn more about accomplishing certain tasks or how to use certain tools in the software Quick Reference Guide Identifies the more commonly used tools features and icons and provides help ful tips for getting the most out of StreetSmart Edge Account Details Training Account Balances Positions and Gain Loss Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 426 Order Status and Transactions Charts Training Creating Charts Chart Overlays Drawing Chart Lines and Shapes Char
538. wn menu To save as a file AND still see it in your software do both actions But Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 62 remember that they are saved in two separate places so changes to the tem plate must also be saved to both places if you want to keep them in sync To save to as a file once your template is complete click the disk icon fy at the top of the Create Alert window You will be able to select a location to save the file to on your computer name the template file and click Save Open Alert Template from File If you have saved an alert template to file you can open it by clicking Tem plates drop down menu and choosing Open Template from File Find the file on your computer click it and select Open Renaming a Template 1 Click the Templates drop down and select Manage Templates 2 Click the template you want to rename and then click the pencil icon 3 The name of the template will become an editable field Change the name and press Enter to set it Deleting a Template 1 Click the Templates drop down and select Manage Templates 2 Click the template you want to delete and then click the X next to it 3 Confirm your wish to delete the template by clicking OK If you don t want to be asked to confirm the deletion next time check Do Not Show Again Built in Templates Ask Increases Beeps and loads the Trade tool if the ask increases to
539. wnloading and creating layouts in Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 13 Are there additional fees associated with trading using StreetSmart Edge StreetSmart Edge will have no effect on your existing StreetSmart Pro layouts To run both platforms side by side please reference Schwab s recommended system requirements to ensure that your system has the necessary resources to run both plat forms No StreetSmart Edge has the same fee structure as trading on Schwab com and StreetSmart Pro Account Details and Orders How do I get my account balances pos itions and transaction history in to StreetS mart Edge If I place an equity or option order in StreetS mart Pro StreetS mart com or Schwab com will I see it in StreetSmart Edge and vice versa Benefits of Upgrading Learning a new platform takes time What bene fits will I receive by using StreetSmart Edge StreetSmart Edge will automatically provide access to your account balances positions transaction history and alerts This inform ation can be found within the Account Details tool You will access your Conditional Orders like Trailing Stops and Brackets by clicking the Order Status tab Yes equity and option order information is viewable and open orders can be changed or cancelled across all of Schwab s trading plat forms StreetSmart Edge
540. xpiration For use when investor anticipates e Moderately falling price of underlying security if short puts out of the money at open e Decreasing volatility Financial Characteristics e Maximum Loss S bie number of short contracts number of long con tracts difference in strikes long contracts net against cost credit of establishing spread e Maximum Gain Difference of the strike prices net against cost credit of establishing spread The maximum loss on a put ratio spread position remains limited as long as and only as long as the integrity of the spread is maintained If the investor trades out of or exercises the long put the maximum loss may be substantially larger Objective e Speculative gain EXAMPLE Put Ratio Spread Currently XYZ trades at 23 share The investor believes the stock will mildly depreciate and wants to participate in the downward movement but at a discount to the cost of simply buying puts Instead the investor employs a put ratio spread strategy of buying one in the money put strike 25 for 3 00 and selling two same expiration month out of the money puts strike 20 at 1 00 per for a net debit of 1 00 Using this strategy the maximum loss is 16 00 or if the stock price is at or above 25 the maximum loss is 1 The investor will profit if the stock is between 16 and 24 at expiration The maximum profit an Copyright 2010 2015 Charles Schwab amp Co Inc A
541. xt to it and click Delete or to delete a note you re already viewing click Delete Note To delete all notes displayed check the box next to Title and select All this checks all notes on display and click Delete Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 386 e Export To export a note put a check next to it and click Export A window will open asking you to give the saved file a name The file is saved in the Saved Data folder as an Atm file To export all notes displayed check the box next to Title and select All this checks all notes on display and follow the Export instructions above e Edit a Note Select the note and click Edit Make changes to the note and click Save e Search for Notes Enter a search term in the upper right corner Search field and press Enter or click the icon Search results will display in the All Notes tab Usage Limits The Notes tool can hold up to 2 500 notes The Current Usage bar at the bottom of the Notes tool shows how much capacity you have remaining If you hover your mouse over the Current Usage bar a tip will display telling you the per centage of Notes space being used Adjust Color Settings 1 From the right click menu select Colors 2 In the Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to th
542. y 2 Select the save location and enter a name for the export file if you wish to change it from the default and click Save Transactions Column Descriptions See Transactions Columns and Settings for directions on setting up your Trans actions display Name Description Date The date the transaction occurred For trade orders this reflects the date the order was filled Action This indicates whether a action was a Buy Sell Sell Short or is left blank for monetary transactions Quantity The number of stock or mutual fund shares bought sold or sold short For fixed income securities this number reflects the face value of the security you bought or sold For options this reflects the number of option con tracts you bought or sold For monetary transactions this field will display a dash Symbol The unique 1 5 characters used to represent the security Symbols are defined by the different mar kets or exchanges Sometimes a security might not have a symbol in which case an internal Schwab reference will be used For monetary trans actions this field will display a zero Description This field provides a description of the security or an explanation of the transaction Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 104 Price This indicates the price you paid or received for the purchase or sale of a unit of the security For example
543. y In S amp P 500 In S amp P Mid Cap 400 In S amp P Small Cap 600 Analyst Ratings SER age volume for the last month expressed as a percentage Difference between current Volume and the aver age volume for the last 6 months expressed as a percentage Difference between current Volume and the YTD average volume expressed as a percentage The 5 day average volume in dollars not includ ing today Indicates whether the stock is part of the Stand ard and Poor s 500 Index Indicates whether the stock is part of the Stand ard and Poor s Mid Cap 400 Index Indicates whether the stock is part of the Stand ard and Poor s Small Cap 600 Index Schwab Equity Rating evaluates individual stock S amp P Stars and provides a 5 point rating scale A B C D F indicating Schwab s outlook on the potential per formance of the stock over the coming 12 months More on Schwab Equity Ratings S amp P s fundamental analysis and evaluation of the short term 6 12 month appreciation of potential stocks e 5 BUY Expected to be among the best performers over the next 12 months and rise in price e 4 ACCUMULATE Expected to be an above average performer e 3 HOLD Expected to be an average per former e 2 AVOID Likely to be a below average performer e 1 SELL Expected to be a well below aver Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 319
544. y or do nothing cancel Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 22 Rename a Layout With the layout open right click on the tab and select Rename Layout then type a name for the layout and press Enter You can also rename layout tem plates by opening the Manage Templates window via the right click menu and clicking the pencil icon Duplicate a Layout You can create an exact duplicate of a layout by right clicking on the tab and selecting Duplicate Layout Delete Templates Right click on the tab and select Manage Templates Click the X next to the name of the template you want to delete Import Layouts You can import layouts and save them as a layout template from the Manage Templates window 1 Right click on a layout tab and select Manage Templates 2 Click Import Layout Click on the layout file you wish to import and click Open 3 Give the layout template a name and click Save and then Done 4 If you want to then open that layout right click on a layout tab Select Open Layout Template and choose the layout you want to open Backup and Restore StreetSmart Edge enables you to back up your current layout s and settings as one file to either the Schwab servers or to your hard drive or both Auto Save The default setting for your software is to automatically save your layouts and settings every 5 minutes and when you log off You can control this sett
545. y Ratio Bearish S ow Spreads Short Con Contracts tracts S x OW Net Short Con Debt Cred tracts it Paid Re Net ceived Debt Cred it Paid Re ceived Straddle Long Bullish or bear Net s ish with rising Premium Unlimited Loss Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 192 Strategy Sub For use when Financial Characteristics Strategy view of stock is Max Loss volatility Paid Neutral and fall Unlimited Net ing volatility Premium Received Bullish Bearish Net Unlimited and rising volat Premium ility Paid Neutral and fall Unlimited Net ing volatility Premium Received But Neutral and Net Middle terflies low falling Premium Strike volatility Paid Price Lowest Strike Price Net Premium Paid Bullish Bearish Middle Net and high rising Strike Premium volatility Price Received Lowest Strike Price Net Premium Received Condors Neutral and Net Dif Loss low falling Premium ference volatility Paid between lowest Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 193 Strategy Sub For use when Financial Characteristics view of stock is Max Loss Max Gain and next lowest strike prices Net Premium Paid Bullish Bearish Dif Net and high rising ference Premium
546. y Option Spreads Combinations Stock ETF Vertical Call Buy Write Calls Puts Vertical Put Sell Write Calls Calendar Call Straddle Strangle Puts Calendar Put Collar Combo Conditional Orders Ratio Call Rollout Ratio Put Rollout Spread Butterfly Call Rollout Straddle Butterfly Put Custom Condor Call Condor Put lron Butterfly Iron Condor Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 159 e All in One tool Click the drop down arrow in the tab name to select a strategy Trade tool Symbol Hub Use the Strategy Selector in the upper left corner of the Options tab to select the strategy whether a straight Call or Put or a multi leg strategy like a Straddle or Vertical Spread e The software will update the option chain to display contracts or contract pairings appropriate for the strategy AND will adjust the Trade Ticket to dis play the correct order entry fields e Fora more technical look at each type of option strategy see Option Strategies Overview Select Contract s in Option Chain e The option contracts or contract pairings available for that strategy will dis play within the option chain area They are grouped by expiration date and the near date defaults to open with the Mid price highlighted e For straight calls or puts get details on an individual contract by clicking the arrow at the start of the row This will display the contract specifications Level I and Leve
547. y resources right in your software Signing up for news analysis and other services through the Trader s Mar ketplace puts a link to that service right in the Marketplace toolbar so you can integrate that service right into the workflow of your StreetSmart Edge display You may have one Trader s Marketplace tool open at a time amp For more on the Marketplace offerings click Marketplace gt Trader s Mar ketplace and view the list of available third party products Each includes more information about the service as well as a way to sign up and integrate it into your StreetSmart Edge display Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 425 As part of the Trader s Marketplace Schwab may make available various offers for products and services of third party providers Schwab has established these referral relationships as a convenience to you Please understand that these pro viders are not Schwab agents or personnel They are third parties over whom Schwab has no control If you choose to receive services and or products from these providers you do so at your own risk and you are solely responsible for evaluating whether these providers and their services and or products are appro priate for your use Live Help The Live Help window allows you to communicate directly with a Schwab Trading Services Representative without having to pick up the phone Just open the Live Help
548. y to all be sure to make that selection at the bottom of the Settings window before clicking OK Jump Start Watch List Column Customization Selecting one of the following from the Apply Template drop down will auto matically check the fields relevant to that template You can further customize by adding or subtracting fields to your specifications Choose from Positions Displays fields you might be most interested in if you have a Watch List composed primary of positions you hold Option Greeks Displays Bid Ask Open Interest Volume and all option Greek fields Basic Options Displays basic quote data relevant to options as well Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 377 Choose from as basic option data excluding Greeks Company Profile Displays basic company information like P E Sector and Schwab Equity Rating Price Range Displays fields related to current pricing and volume for your list of symbols Option Greek Pricing Models Greeks indicate how fast an option price is changing relative to parameters such as time underlying stock price volatility etc e Pricing Method Select from Black Scholes Barone Adesi Whaley or Cox Ross Rubinstein e Interest Rate Defaults to the 3 Month Treasury I rate Index rate IRX or you can define the rate as you wish Choosing Columns From the Settings window check the columns you want to
549. y up to 20 charts across with up to 20 tabs in each You can also save up to 20 tabs to the software but save as many as you wish to a local hard drive using the Save as File feature lt For a demonstration and more information on using Charts visit the Training page Getting Around the Chart Tool Each important area of the Chart tool is displayed in the image below Title Bar LAA 2 8 42 A Alcoa Inc k _ O AA 802 Days Daily O Gi Tab Syncis On GQ S Hi Level 1 Date als Open 8 35 Low 8 27 Close 8 42 Volume 18 763 134 Data Bar ma MES Graph Siyle Overlays Extra Periods Draw Breer agaens Quick Jumps 05 11 2009 fF 7 c History Control Open Close Settings Stock symbols and price and volume data shown here and in the software are for illustrative purposes only Charles Schwab amp Co Inc its parent or affiliates Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 260 and or its employees and or directors may have positions in securities ref erenced herein and may as principal or agent buy from or sell to clients TIP For more information on getting the most out of your chart display see Chart Display Tips The following table explains each major element of the Chart display Chart Features Price Chart The heart of the Chart window is the price chart itself It
550. yed in the Watch List it will completely replace the column that was there If it is already in the Watch List display the two columns will swap places e You can also arrange column order from the Columns amp Settings window available by right clicking on the tab name All chosen fields display in the Column Order display on the right with the most recently selected column at the bottom of the list Click a column name and use the Up Down buttons to move the column into a new position TIP To save space if you have Sector Industry and or Sub industry dis played in your Watch Lists you can abbreviate those columns by selecting Abbreviations at the top of the Settings window Otherwise to view full names in those fields select Long Names Copy and Paste Option Symbols The easiest way to add an option symbol to a Watch List or symbol field is to use the copy and paste feature Copy 1 Right click on an option symbol in the Option Chains display or in the Pos itions tab 2 Select Copy symbol from the right click menu Paste e To paste in a Watch List right click on the add symbol field and choose Paste symbol from the menu e To paste in a symbol field such as in the Trade tool or Symbol Hub right click in the field and select Paste symbol Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 379 News News Overview The News tool streams real time breaking news fr
551. you have saved a chart as a file but not as a template you can use this menu item to find the file on your computer and open it Opens the Manage Chart Templates win dow where you can rename or delete your Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 265 Chart Tab Right Click Menu saved templates You can also import charts saved as files to make them tem plates in your software Help Opens the online help to the Charts inform ation Right clicking within the chart itself gives you access to the last 6 functions above save open new manage all the Chart Settings features as well as the following additional features Chart Display Right Click Menu Load Trading Tool with Loads the current chart symbol into the symbol Trading tool Useful if you want to see addi tional price data for the symbol or place a trade More on Trading and Quotes Load Symbol Hub with Loads the current chart symbol into the symbol Symbol Hub Create an Alert for sym Loads the Create Alerts window so you can bol create an alert for the symbol Create a Conditional Order Load the Conditional Orders tab of the Trad for symbol ing tool so you can create a conditional order for the symbol View News for symbol Opens the News Overview tool and displays today s headlines for the symbol View Fundamental Data Opens the Resea
552. you load a new symbol the previous symbol will display in the carousel Scroll through the charts using the arrow buttons to the left and right of the carou sel The carousel displays up to 30 minicharts at a time There are three display options for the carousel which can be accessed by right clicking either in the Symbol Hub title bar or in the Minichart Carousel itself and selecting Minichart Carousel Display options e Large Shown above displays a 1 minute 1 day chart with the current quote and the dollar and change fields e Small Displays a 1 minute 1 hour chart and Change from Close Takes up a quarter of the space of the large format Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 303 e None Hides the carousel completely from the Symbol Hub display The soft ware will still keep track of the symbols you ve viewed so if you want to reopen the carousel later you can TIP To remove a symbol from the carousel hover your mouse pointer over the minichart and a red X will display Click the X to remove that symbol Note that this will also remove the symbol from the symbol drop down list in the Title Bar at the top of the Symbol Hub as well as from any other symbol drop downs in any linked tools For more on linking tools see Tool Link Icon Screener Plus The Screener Plus tool can help you identify securities meeting certain criteria by setting up Custom Screens as
553. your Account Detail window e Cost and P amp L totals displayed below the position information are the sum of the lot level detail If lot details are available but some of the detail is miss ing the word Incomplete will display in the cost column Trade Lot details can be viewed for these positions but all totals are followed by an asterisk to denote that they are incomplete If N A appears in the Cost column cost data and lot level detail are not available for the position e During market hours market value is derived from real time quotes After market hours market value is derived from the most recent closing price or last trade unless you have Update Equities Profit amp Loss during After Hours checked This setting can be found under Settings gt Account in the main menu Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 92 e The information in the Lot Details is to provide you with real time inform ation about the lots that comprise the position It is for estimating gains and losses only it is not intended as tax or legal advice and should not be used for tax purposes Schwab is not responsible for the accuracy or com pleteness of the information Please refer to your statements and tax doc uments provided by Schwab e All profit and loss information provided is unrealized P amp L only e For positions that have more than 700 share lots only position cost will be displ
554. your behalf e For more information see Conditional Orders Overview TIP Conditional Orders are a way to manage risk on positions you already hold Another way to do this is by setting up Brackets on your equity and option orders Brackets are profit stop loss and trailing stop exits and can help protect against significant losses as well as protect profits on a position For more on how brackets can help your trading and how to apply them see Brack ets Overview Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 109 Direct Access Order Routing Stock amp ETFs Tab Features amp Trade Stocks and ETFs in the All in One tool the Trade tool or Symbol Hub Title Bar 2Bid 37 47 Ask 37 48 Vol 7 796 715 Gh s 75 69 91 Level Open 37 20 Close 37 15 Spread 0 01 Orders Position Indicators High 37 50 Low 37 08 Size 5000 X 4400 Stock ETF Calls Puts Conditional Orders 2 Actions v Action Quantity S Venue Order Type Limit Price Timing Buy 100 2 Smart Limit 37 48 Day ELE a Trade Ticket O Close All Special Cond Review Order Cancel Last Order Save For Later Estimated Cost 3 748 00 Add A Leg c Estimated Cost Warket Depth Option Chains L 37 47 37 48 37 47 37 48 37 47 37 48 37 47 37 48 37 47 37 48 37 47 EDGX 37 48 37 47 37 48 37 48 37 48 37 48 37 48 37 48 Market Depth Bid
555. ypes of options or option pairings you want to view See the Option Chain Filters topic for more on using these filters Weekly Quarterly amp Adjusted Option Filters Control the display of options with Weekly or Quarterly expirations as well as Adjusted options from the Settings drop down of the main menu or from the Actions drop down in the Option Chains display See Option Chains Settings for more on filtering non standard and adjusted options Option Chain Columns You can customize the columns displayed in the option chain as well as determ ine several other settings for the display To learn about these settings see the Option Chains Columns and Settings topic Adjust Color Settings 1 From the right click or Actions menu select Colors 2 Inthe Colors window you can customize the colors of each element from background and highlight colors to font colors 3 Click Reset to Default Colors should you wish to return to the original col ors Order Status Indicator If you have an open order for the selected option a small O indicator x will dis play next to the Strike price e Click the indicator to display a list of all option and equity orders in your account for the underlying symbol e The list shows the details of each order price venue quantity etc order number and quantity filled e It also gives you quick access links to Cancel Change or Add Edit Brack ets for each order For more on chan
556. ys the Time In Force Indicates whether the item is an Order Primary for bracket orders one of the brackets Profit Exit Trailing Stop Exit Stop Loss Exit or Condi tional During market hours displays the price at which a trailing stop order will be triggered The trig ger price is calculated by using the point or per centage amount and subtracting it from the bid on sells or adding it to the ask on buys As the security s price increases for sells or decreases for buys the trigger price moves up or down and the Order Status panel displays streaming updates Current inside Ask price Current inside Bid price Current Last Trade price The last trade price of the underlying stock of an option Order Status Columns and Settings The StreetSmart Edge Order Status tab found in the Account Details tool is customizable allowing you to choose which columns of data to display for the status of orders in your account as well as the order of the columns Access the Order Status tab Settings window by right clicking in the Order Status display and selecting Columns and Settings or access it from the Actions drop down menu Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 46 Sorting Rows Sort rows by clicking the header of the column on which you want to sort An arrow next to the column name indicates the sort direction ascending or des cending e If Auto S
557. ys to expiration If all other vari ables are equal the security with the highest volatility will generally have the highest option prices In the Money For a call option to be in the money an option s strike price must be below the market price of the underlying security For a put option in the money is when the strike price is above the market price of the underlying security Copyright 2010 2015 Charles Schwab amp Co Inc All rights reserved Member SIPC 1015 6153 399 Indicator An indicator is a value usually derived from a stock s price or volume that an investor can use to try to anticipate future price movements Indicators are divided into two groups trend following or lagging and momentum or lead ing Lagging indicators tell you what prices are doing now or in the recent past so are useful when stocks are trending A moving average is an example of a lag ging indicator Leading indicators are designed to anticipate future price action and many come in the form of oscillators RSI is an example of a momentum indicator Iron Butterfly An iron butterfly is an options strategy which combines a call spread and a put spread it involves two call legs and two put legs all with the same expiration date and generally with consistent distances between the three strike prices involved The strategy gets its name from its 3 part structure involving the two outer strikes or wings and the middle strike represent

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