Conditional Order

AAA

DEFINITION of 'Conditional Order'

A type of order that will be submitted or canceled if set criteria are met, which are defined by the trader/investor entering the order. This allows for a greater customization of the order to meet the specific needs of the investor.

INVESTOPEDIA EXPLAINS 'Conditional Order'

For example, say an investor enters a limit order to buy shares at $45, but only once the shares have first reached $50 (confirming a breakout). The limit order at $45 will be submitted to the brokerage firm only once the shares have reached the $50 price. Conditional orders allow traders to enter into a trade without having to constantly monitor the market, allowing them to be as fast as the market.

RELATED TERMS
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches ...
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  3. Breakout

    A price movement through an identified level of support or resistance, ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Buy Stop Order

    An order to buy a security which is entered at a price above ...
  6. Stopped Out

    The execution of a stop-loss order. Stopped out refers to when ...
Related Articles
  1. Day Trading Strategies For Beginners
    Trading Strategies

    Day Trading Strategies For Beginners

  2. The Basics Of Trading A Stock
    Active Trading Fundamentals

    The Basics Of Trading A Stock

  3. What's the difference between a stop ...
    Active Trading Fundamentals

    What's the difference between a stop ...

  4. I want to buy a stock at $30, sell when ...
    Trading Strategies

    I want to buy a stock at $30, sell when ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center