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
• f) c and d
  Yes. A stop order and a stop-limit orders become market and limit orders respectively upon the contingency being met -- if and when the price has become as bad as specified. herefore both are contingency orders. Continue

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