Contingent Order

DEFINITION of 'Contingent Order'

1. An order involving the simultaneous execution of two or more transactions.

2. An order whose execution depends upon the execution and/or price of another security.

BREAKING DOWN 'Contingent Order'

These types of orders are generally placed for option strategies where two separate transactions must occur at the same time. An example is a buy-write, where an investor would buy a stock and sell a call simultaneously.

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RELATED FAQS
  1. 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 >>
  2. What are the regulations surrounding limit order protection?

    Learn about the order protection rule enacted by the Securities and Exchange Commission (SEC) to ensure investors receive ... Read Answer >>
  3. What's the difference between a stop and a limit order?

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  4. How do I set a strike price in foreign exchange trading?

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  5. How do I place a buy limit order if I want to buy a stock during an initial public ...

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