Alternative Order

DEFINITION of 'Alternative Order'

An investor mandate to buy or sell a particular stock or other financial instrument on what amounts to a first-come-first-served basis. For example, an investor might place an order to buy Acme Widgets at $10 and $5. If and when one of the orders is filled, the other order is automatically canceled.

Alternative orders are sometimes called "one-cancels-the-other orders."

BREAKING DOWN 'Alternative Order'

Some technical analysts favor alternative orders because they allow investors to buy and sell at specified levels that correspond with the analysts' perception of support and resistance. Alternative orders can also be used to buy different stocks. For example, an investor might place an alternative order to buy Stock A at $25, Stock B at $30 and Stock C at $35. Whichever stock reaches its buy point first, is the official order. Again, for technical analysts in particular, this type of order can be beneficial, as it hones in on stocks exhibiting a desired behavior.

RELATED TERMS
  1. Day Order

    An order to buy or sell a security that automatically expires ...
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  3. Bracketed Buy Order

    A buy order that is accompanied by a sell limit order above the ...
  4. One-Cancels-the-Other Order - OCO

    A pair of orders stipulating that if one order is executed, then ...
  5. Good This Month - GTM

    A limit order to buy or sell a security that remains in effect ...
  6. Cancel Former Order - CFO

    An order from an investor to a broker, to cancel a previously ...
Related Articles
  1. Professionals

    Types of Securities Orders

    Securities Orders
  2. Active Trading Fundamentals

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  3. Professionals

    Orders

    Orders
  4. Investing

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  5. Professionals

    Types Of Orders

    Investors can enter various types of orders to buy or sell securities. Some orders guarantee that the investor’s order will be executed immediately. Other types of orders may state a specific ...
  6. Professionals

    Types Of Orders

    Investors can enter various types of orders to buy or sell securities. Some orders guarantee that the investor’s order will be executed immediately. Other types of orders may state a specific ...
  7. Forex

    Entering A Trade

    The importance of executing the correct orders
  8. Professionals

    TYPES OF ORDERS

    Order Execution Most customer orders, which are market orders or executable limit orders, will be routed electronically to the trading post for automatic execution. The electronic system bypasses ...
  9. Professionals

    A. Introduction: Trading Securities

    Investors, who do not purchase their stocks and bonds directly from the issuer, must purchase them from another investor. Investor-to-investor transactions are known as secondary market transactions. ...
  10. Forex Education

    Intermediate Guide To MetaTrader 4 - Order Types

    Traders have the option of placing different order types using the MT4 platform. Market OrderA market order is the most basic type of trade order and is used to buy or sell a security at the ...
RELATED FAQS
  1. How can I use a buy limit order to buy a stock?

    Learn how a buy limit order is used by an investor who wants to buy a stock at a certain price, and understand how limit ... Read Answer >>
  2. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  3. What is the difference between a buy limit and a sell stop order?

    Understand the differences between the two order types, a buy limit order and a sell stop order, and the purposes each one ... Read Answer >>
  4. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  5. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
  6. What is the difference between a buy limit and a stop order?

    Learn the difference between buy limit orders and stop orders, including stop loss orders, and understand the risks of the ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center