What is a condition-related order?
A conditional order allows you to attach certain criteria to a stock order before it can be submitted. For instance, if you want to buy stock at a specific price, your order will only be fulfilled if the share reaches that price.
Where have you heard about condition-related orders?
Investors often attach conditions to their orders as it allows them to enter into a trade without having to monitor the market all day. Condition-related orders can make you more successful in buying and selling at the right time.
What you need to know about condition-related orders.
Perhaps you’re interested in a particular company but you’re not willing to pay the current market price of its stock. Say it’s £5 a share but you don’t want to pay more than £3.60. You can specify this on your broker’s website so a transaction is only carried out if the share hits that price.
Similarly, you can sell some or all of your shares in a company if the price falls to the level you have set as your trade trigger.
Put simply, it’s like having an extra pair of eyes that can keep watch over your investments for you.