Chapter 04 · Section 4.1

Contingency Orders

Contingency orders can only be executed if and when some condition specified in the order is satisfied.

There are many kinds of contingency orders. However, not all of them are accepted everywhere.

Which of the following are contingency orders?

a) The market order
b) The limit order
c) The stop order
d) The stop-limit order
• e) a and b
  No. A contingency order is a market or limit order that is contingent upon some condition being satisfied before the order can be executed. Neither market nor limit orders can be contingency orders.
  f) c and d

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