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
A contingency order may be executed only if some condition specified in the order is satisfied
The condition in contingency orders does not apply to the final result (e.g. the price at which the order was executed), but to the circumstances under which it was executed.