Getting started with Interactive Brokers paper trading account

This guide will show you:

• How to get started without becoming overwhelmed (I was too when I first started using it over 17 years ago!)
• How to set up the workspaces and layouts
• Why you should ALWAYS use Classic and not Mosaic
• How to use the Risk Navigator which is one of the best tools for option traders

GETTING STARTED WITH TWS

Before getting started with TWS, you need to download and install the TWS software. You can access the TWS downloads from the Log In menu on the Interactive Brokers website.

There are three different TWS versions available in the Log In menu:

TWS Latest – is the most current stable production version of TWS with all of the latest features.

TWS – is the version of TWS that is updated less frequently than other versions. It offers maximum stability but does not include all the latest features.

TWS Beta – is a version that has not yet been released to production and is likely to change often. It may be less reliable than other versions but will have all the latest bells and whistles.

All three of these versions update automatically when you login if a new version becomes available.

Once installed, double-click the TWS icon on your desktop to login. Select Live Trading or Paper Trading from the Trading Mode drop-down.

You could also select your preferred color palette for TWS; classic, dark, or light.

TWS WORKSPACES AND LAYOUTS

TWS opens with a mosaic workspace as default. TWS offers another choice of using classic TWS.

I use both.

Mosaic layout is a collection of interchangeable windows that you can add, remove, resize, reconfigure, and rearrange to fit your own trading style.

The Classic TWS workspace features a multi-product spreadsheet view with access to all available trading tools from a menu.

You can use the layout tabs at the bottom left of the screen to switch between Mosaic and Classic TWS.

CLASSIC TWS

Classic TWS has a huge amount of bells and whistles. Most of which is not useful for futures options trader. It’s actually really easy to use once you get the hang of it and understand the basic functions.

In the main window, we can set up multiple watch lists for tracking stocks, options and futures.

I like to have tabs for some of the main instruments that I trade . I will have a separate tab for each expiry month.

To add options to a new watch-list, just type in the ticker, scroll down to options and hit enter. From there you can find the options you want to add on the options chain. I usually hit “Add All” and then from there manually delete the ones I don’t need. Much easier than adding them one by one.

Mosaic

• Get direct access to TWS trading, order, live quoting, technical research and analysis tools all in a single window.
• Customize Mosaic's workspace to suit your own trading needs by snapping your favorite TWS trading tools together.
• Use the Portfolio window for at-a-glance account summary and position detail, the Order Entry window to formulate and transmit orders instantly, and the Order Monitor to track and modify live orders and review filled and cancelled orders.
• Create sophisticated attached orders directly within the Mosaic Orders panel, including bracket, stop limit, profit taker, One Cancels Other, beta, fx order and pair hedging orders.
• Add multiple Watchlists to view groups of contracts and create customized Market Scanners.

SETTINGS

On most windows you will find a spanner icon in the top right hand corner. From here you can access the Settings for that window.

Here you can add or remove columns such as Delta, implied volatility and many more. There are literally hundreds of columns you can add in some cases.