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

  1. Right-click in a blank line and 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 that you must have a value in any field in pink before the OK button will become active.

  1. 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.