Alternative Order
What Does Alternative Order Mean?
A combination order whereby two separate orders are entered on the same security. The execution of one order cancels the other.
Investopedia explains Alternative Order
For example, if you purchased shares of XYZ at $5, you could enter an alternative order to sell at either $2.50 or $7.50. If the order to sell at $2.50 was executed, the $7.50 order would be cancelled and vice versa. This would limit potential losses and gains, thus mimicking a collar strategy.
