What is a conditional order?
A conditional order is a type of investment order that requires a certain event or action to take place before placing or cancellation of the order. There are several different types of conditional orders that can be used, based on the outcome of the required investor. Examples of conditional order are order restrictions, stop commands, orders to stop the loss and order of time.
with a conditional order is provided by the investor brokers specific instructions on when and how to make an order. For example, the investor can customize the order so that the intermediary bought shares of specific shares only when the unit price reaches a certain level. If the shares do not reach this level, the order remains active, but sleeping until the investor decides the instructor to kill the application. Similarly,
may be structured under a conditional command to authorize brokers to buy or sell shares if they reach a certain price in a certain time assignmentbi. This should be that if an investor wanted to sell shares of the security, if the price dropped below a specific time of the current business day, the broker would include this data. If this time limit passed without the value of the shares of the decline below the identified unit price, there is no sale and the order is considered to be fulfilled.
The structure of a conditional order can cover almost any type of event that may appear on the market. Some orders of this type include instructions for brokers to buy at certain prices, pay for a given time and sell when the value of securities falls below a certain price. Other times, this approach may require measures to be taken in a specified period of time, provided that the prices of security within this time framework move to one or the other. Combination of purchasing, selling and possession of instructors is usually OMEzena only on the basis of all regulations imposed by national agencies or the rules and regulations stipulated by the stock exchange where trading takes place.
One of the main advantages of the conditional order is that it allows investors to adapt instructions for brokers to allow various events that may occur on the market. With this strategy, the investor's interests are protected regardless of what happens to the security concerned, while allowing the investor to focus on focusing on matters other than what is happening on the market. As a bonus, brokers are constantly monitoring market movements, allowing you to implement this conditional order as soon as the right conditions appear, which can mean higher revenues for the investor.