contingent order

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.

Notes:

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.

See also: Buy Write, Leg, Spread, Strangle

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Contingent order

An order which can be executed only if another event occurs; i.e. "sell Oct 45 call 7-1/4 with stock 52 or lower".

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contingent order

A special type of security order that instructs the broker to take some action only in the event that something else has occurred. An example would be an order to sell call options on Westinghouse common stock only after shares of Westinghouse have been purchased at a specified limit price.