Track 'n Trade LIVE Futures

How to Use the Depth of Market - (DOM) Tab

Video Transcript 

In this video, we want to cover the DOM Tab, within Track'n Trade. You can see here, that we have the DOM Tab selected within the Control Panel. At the very top, we have our Mini Tic chart, which represents the last 200 trades. Notice across the top of the chart, we have the Bid, the Ask, and the last Amounts listed. Along the bottom, we list the Spread Amount, along with it's Average, High, and Low. Next, we have the Mini-Accounting window. This is where we can see at a glance all of our most pertinent accounting information. Notice, we have blue hyper-links symbols listed within the window, as well. Which can be clicked on for more information. For example: if we click the blue dollar sign next to chart open profit and loss. It rotates to display the percent return on margin. If we click it again, it rotates to display the number of Tics. If we click it again, it rotates back displaying the dollar amount, once again. Each blue hyperlink provides additional information for each individual line item.

One line item I want to highlight in more detail is the portfolio margin line. We default this line to the maintenance margin. This is what we call the "Look Ahead Margin." Since this is the margin amount that will be required if we hold our trade over one trading session, to the next. Such as, from a day trade session into the night-time session. Again, this amount will be what will be required to be in your account, once we switch to a new trading session.

The next line is the usable margin amount. This line is defaulted to the day session margin. Which is generally the lower amount. The amount you enter or exit trades with during the current trading session, only. When you click the blue text, it will switch over and show you the maintenance margin. Click it again, it will show you the initial usable margin.

The row titled, Cash Balance includes the current amount of liquid cash you have in your account. It also represents any closed profits or losses you may have accumulated. The next row listed just below Cash Balance is the Equity Margin Ratio. This is a percentage, which is calculated by taking your total account equity and dividing it by the initial margin of each open contract. Then multiplying it by 100 to get a percentage.

This row is a measure of how much of your account equity has been utilized for open trades. A higher percentage means you're using less of your equity and a lower percentage means you were using more of your account equity, for all open positions. Now, lets talk just for a minute about margin warnings, and margin calls.

This is a screen capture of it looks like if your account were to go on margin call. This means of course that the only trading you're allowed to do is to close current open positions in an effort to reduce your active margin requirement. On the other hand, if you prefer not to close any outstanding positions to correct the margin requirement, you are also able to wire additional funds to your trading account, to remove the margin call lock.

Here's another margin warning. This low margin notice is what you would see if your equity margin ratio drops below 8%. This liquidation warning is what your would see if your equity margin ratio drops below 6.5%. Letting you know that you're coming close to the 5%, which is where the clearing firm may step in and start closing out all or some of your open positions, due to the excessive risk currently in your account.

This Liquidate Now notice is what you would see if your equity margin ratio drops below 5%. This notice is letting you know that you should quickly close some of your open positions. A clearing firm will soon be stepping in to close some of your positions for you, due to your overly excessive account risk.

The last row in our Mini-Accounting window represents Total Account Equity. Including any open profits or losses you may currently have. This low margin notice is what you would see if your account equity drops below $900.

Notice the liquidation warning- this is what you would see if your account equity drops below $750. Letting you know that you're getting close to the $500 level, which is where the clearing firm may step in and start closing out all or some of your open positions. Again, due to insufficient funds currently in your account.

The Liquidate Now notice is what your would see if your account equity drops below the clearing firms lowest threshold of $500. This warning lets you know that if you don't close your positions, the clearing firm certainly will, due to the insufficient amount of funds, in your account. This is an additional notice you may see. Notice that you have both a low margin warning for your account equity ratio, as well as a liquidation warning, due to low account equity. In this situation, always take action based on the highest priority notice. Which in this case would be the Liquidation Warning.

Now, moving on- take a look at the very bottom of the Mini-Accounting window. You'll see that we display for your convenience, the number of long and short contracts per chart. As well as total long and short positions account wide. Also notice that we include the individual profit and loss amount, per Tic. As well as the day margin amount in static form, below the mini chart window. This is simply for your quick reference, and more of these types of contracts details can be found over on the key tab, as well.

Next, you'll see where you enter the quantity for the number of contracts you would like to place with each new order. You can increment the quantity up or down, with the spinner arrows, here. Or you can just click a Quick Quantity button, here. Notice that the default starts with one and increments up to quantity twenty. These buttons are user-definable, by simply right clicking and changing the amounts. The green and red BS button, or Buy/Sell button, will open an order placement box, that allows you to customize your order, in a number of different ways. We cover these features in greater detail in Order Placement videos. This next set of buttons, are used for quickly dragging and dropping the different types of orders listed onto the chart. Also, for quickly exiting all of the orders on either the chart or all of the orders in your entire book.

The next section is the actual DOM itself. Which stands for Depth of Market. The Bullish or Buy side of the market defaults to green. The Bearish or Sell side of the market defaults to red. By right clicking on the header, you can reverse the colors if you so choose. In this same right click menu, you also have the ability to collapse the empty bid and ask price fields, as well as removing the volume column.

If you click the green tile above the current market price, Track 'n Trade will place a Buy/Stop order at the specified price. If you click a green tile below the current market price, Track 'n Trade will place a Buy/Limit order, at the specified price. This is repeated on the Bearish side of the DOM, as well. Only in reverse. Click the red tile red above the current strike price to place a Sell/Limit order and below the current strike price, to place a Sell/Stop order. Also, note as you click the DOM to enter the market a corresponding order line and type, will appear on the chart at your specified price level.

The last thing I want to show you, is that by sliding this window up, we reveal Track 'n Trades full size detailed Accounting Window. Over here, on the left side, is where you find the buttons that give you access to your pending orders, open orders, and closed orders. This has been just a quick overview of how to use the Track 'n Trade Live DOM Tab.