 Hey everyone, welcome to another video lesson from NavigationTrading.com. In this video, I want to discuss how to trade pairs on the Tasty Works platform. So at the time of this recording, Tasty Works just released a new feature called pairs trading, kind of one-click pairs trading. And so to start with, let's back up a minute and talk about what a pairs trade is. Taking an example, today the NASDAQ is down a little over 1%, but the Russell 2000 is down almost 3%. So it's significant difference. Now these two symbols are fairly correlated. So when you're making a pairs trade, that's typically what you're looking for. You're looking for two symbols that are fairly correlated, and you want to profit between the spread of those. So let's say for example, you thought the Russell was way oversold compared to the NASDAQ. Essentially you could buy the Russell and sell the NASDAQ, and essentially you're taking a lot of the directional risk out of the trade and you're just trying to profit from the spread between the two. Now for a pairs trade, you can really trade any symbols you want, but typically what you're doing is you're finding two symbols that are fairly correlated and trying to profit between the spread of those. For example, like bonds and notes are very highly correlated. You could sell bonds, buy notes, or buy notes and sell bonds, or you could look at a couple different stocks like Walmart and Target, very similar big retail stores. If you think Walmart is going to outperform Target, you could buy Walmart and sell Target. So those are just a couple examples. Now let's jump into the platform. If you click on the trade tab here in the TastyWorks platform, you'll see there's a new tab that pops up labeled pairs. So just click on that and this box pops up. And then what you can do is you can type in any symbols that you want to trade. So like I said, if you want to go with Target versus Walmart, you could populate that. And then you can choose the number of shares that you want. If you use these buttons up here, the up-down arrows, you can see both equally move. If you wanted to do it on a ratio where let's say you wanted to do 500 shares of Target versus shorting 200 shares of Walmart, you could do that. Or if you want to keep even, like I said, you just use these arrows up here to toggle the number of shares or contracts depending on what you're trading. Keep in mind, the symbol on the left is always the one that you buy. So that's when you're going long, whereas the symbol on your right is the one that you are going short. Now if you decide you want the opposite of this, you could obviously type them in again or if you said I want to buy Walmart and sell Target, you could use this toggle button here and it just flip-flops them. So it makes it very easy to switch around to figure out what you want to trade. The next cool feature that they have is this little chart button right here. So if you click on the chart button, it pops up a one-year daily chart and this gives you the actual price of the spread. So obviously in this case, if we are buying Walmart at $124.55 a share and we're shorting Target at $190.63, you're simply just subtracting $190.63 from $124.60 and that's what gives you the price of the spread. So in this case, it's trading at $4.95, that's also located right here. So you don't necessarily have to enter right at the price that is currently trading. You can do it just like any other order on a single symbol where you can, you know, if you said I don't want to buy this at $5 but I want to wait until if it gets down to $4.60, I want to set a limit order to enter this trade and then you could hit review and send. I'm actually going to place this order. So let's just kick these down to 100 shares of the stock. And again, let's bring this down to $4.60 so we don't actually get filled. Hit review and send and then send. And so that order is placed. Now before I show you how to manage existing orders, let's show you one more feature while we're here on the pairs trader. On the left-hand side is another icon. You pop that out and this is where you can save all your pairs. So you can see I've got spy QQQ, target Walmart, S&P Nasdaq, S&P Russell, Dow Russell, Nasdaq Russell, bonds, notes. You can see on this one, we know that bonds are twice as big as notes. So in this case, if we want to kind of keep it more even, we're trading two contracts of the notes versus one of the bonds. So we set that as a ratio. And once you add these in, all you have to do is click the plus button and that is saved on your list of pairs. So next time you log in, you want to trade something, you just populate this, push this button and you can choose from the different pairs and it automatically populates it into your pairs trader. Okay. So lastly, how do you manage existing orders if you simply go to your activity tab? You can see that, remember that target and Walmart order that we put in? Well, we put it in below where the market was trading. So you can see it's a working pending order. Now, if you wanted to cancel this order or if you wanted to change the price, you don't have to do that on the individual legs. You can actually do it as a pairs trade. All you have to do is on this activity tab, just right-click and you can see there's a new list of orders available on this dropdown and they're referenced as complex orders. So that's what we're looking at as it relates to these pairs trade. They call it a complex order. So if I wanted to cancel the complex order, I could click there. If I wanted to replace the complex order, it simply populates this back up and I can choose a different price. I can adjust that price to try to get filled. In this case, I don't really want to get filled on this, so I am going to right-click and just cancel complex order. Yes, I want to cancel and I'm out. So that is how you trade pairs on the Tasty Works platform. If you have any questions, feel free to drop us a line in the community at community.navigationtrading.com. See you then.