An order to a broker to buy a security and sell the same security, but only if the broker can achieve a certain price differential. For example, an investor may make a swap order to buy a certain number of shares of Stock X and sell the same number of shares, but only if the broker can sell them at $1 more per share. If the broker is unable to do this, then no part of the order is executed. A swap order is also called a switch order.
A specialized security order in which a customer specifies that two transactions be made only if a given price differential can be achieved. For example, an investor might specify that 500 shares of one security be purchased and 500 shares of another security be sold only if the former can be executed for $5 per share less than the latter. Also called switch order.