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Definition of 'Alternative Order'
A combination order whereby two separate orders are entered on the same security. The execution of one order cancels the other.
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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.
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Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
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Find out the various ways in which a broker can fill an order, which can affect costs.
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It's a simple but powerful tool to help you implement your stock-investment strategy. Find out how.
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