Merger Arbitrage Window

Use the Merger Arbitrage window to create a combination order for an anticipated merger between two companies.

 

To create a Merger Arb combo

  1. From the Trading Tools menu, select Merger Arbitrage.
  2. Enter contract conversion information in the Contract Selection area.
  3. In the Order Selection area, enter the desired profit as an absolute amount or a percent of the last price of the stock of the company being acquired (the acquiree).

Note:  Pink fields are required.

  1. Click Create Order to create a combination order line on the trading screen. You can also choose to manage your order from within one of our advanced algo trading tools, Accumulate Distribute or the ScaleTrader.

 

 

The Scale market and order display feature scales the market data to display the price of the combination per share of acquiree, and the order price will also be entered and displayed in these units. This is checked by default. Note that if the calculated size of the acquiree is one, this checkbox has no effect.

The combo order as entered above, and then opened in Accumulate/Distribute looks like this:

 

The remainder of the Accumulate Distribute window allows you to specify detailed and sophisticated order management criteria to help ensure that you receive the best price without being noticed.