Contingency Order: A contingency order to buy or sell a security or other investment product is one that has strings attached. Specifically, it is an order, such as a stop order, a stop-limit order, or an all-or-none order, that is to be executed only if the condition or conditions that the order specifies are met. For example, if you gave a stop-limit order to sell a particular stock if the price fell to $30 — the stop price — but not to sell if the transaction price were less than $27 — the limit price — execution would be contingent on the stock price being between $27 and $30. Broker-dealers aren’t required to accept contingency orders, but if they do accept them they are required to abide by the terms of the order.

 

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Contingency Order: A contingency order to buy or sell a security or other investment product is one that has strings attached. Specifically, it is an order, such as a stop order, a stop-limit order, or an all- . . . View Full Definition

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