Alternative Order
Barron's Finance & Investment Dictionary:
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Alternative Order
order giving a broker a choice between two courses of action; also called an either-or order or a one cancels the other order. Such orders are either to buy or to sell, never both. Execution of one course automatically makes the other course in operative.
An example is a combination buy limit/buy stop order, wherein the buy limit is below the current market and the buy stop is above.
An example is a combination buy limit/buy stop order, wherein the buy limit is below the current market and the buy stop is above.
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Alternative Order
Investopedia Financial Dictionary:
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Alternative Order
A combination order whereby two separate orders are entered on the same security. The execution of one order cancels the other.
Investopedia Says:
For example, if you purchased shares of XYZ at $5, you could enter an alternative order to sell at either $2.50 or $7.50. If the order to sell at $2.50 was executed, the $7.50 order would be cancelled and vice versa. This would limit potential losses and gains, thus mimicking a collar strategy.
Related Links:
Taking control of your portfolio means knowing what orders to use when buying or selling stocks. The Basics Of Trading A Stock
Find out the various ways in which a broker can fill an order, which can affect costs. Understanding Order Execution
It's a simple but powerful tool to help you implement your stock-investment strategy. Find out how.
The Stop-Loss Order - Make Sure You Use It
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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