swap order

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Swap Order

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

swap 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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Most notably, while plenty of airlines might theoretically prefer to switch orders to the A320neo family from the Boeing 737 MAX, Airbus already has a backlog of nearly 5,800 orders for its popular jet family.
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For companies interested in global supply chain integration, the network could also extend to central planners who would have an overview of the plans being generated at a local level and, more importantly, the authority to switch orders between the various local sites.