Merger Arbitrage Window
Use the Merger Arbitrage window to create a combination order for an anticipated merger between two companies.
Set up a merger arbitrage combination order
Right-click in a blank line and select Merger Arbitrage.
Enter contract conversion information in the Contract Selection area.
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 that you must have a value in any field in pink before the OK button will become active.
Click OK.
TWS will create a combination order line on the trading screen.
Click to see an example of how the merger arb combo is calculated.