Definition: An order that is executed only when certain conditions of the security, or another security, have been fulfilled.
Usage: To enter a new position or exit an existing position when the stipulated security reaches the targeted price range.
Examples of entering a new position with contingency orders
A contingency order is set to sell NOL at $1.43 if the Bid Price of NOL equals to or is less than $1.43. The contingency order is triggered and a limit order is sent when NOL hits $1.43 and the order will be executed at $1.43 or better.
A contingency order is set to sell Singtel at $3.13 if the Bid Price of another security, StarHub, equals to or is less than $2.89. When this condition is fulfilled, a limit order to sell Singtel is sent and the order will be executed at $3.13 or better.