Condition-Related Order

A condition-related order is a type of order placed by a trader or investor that is executed only when specific market conditions are met, such as when a stock reaches a certain price or a market index hits a particular level. Condition-related orders include stop orders, limit orders, and stop-limit orders. These orders help traders automate their trading strategies by specifying in advance the price points or conditions under which they want to buy or sell a security.

Example

A trader might place a stop-loss order on a stock, specifying that it should be sold automatically if its price falls below $50, thus limiting potential losses.