A Contingent Order Gives You Control

Using a contingent order, you can use special instructions (called conditions) that will instruct your broker on how to place your order.

Conditional orders refer to an order that has special terms applied. The order will execute, but only if other events occur first. You just learned about two conditional orders: limit orders and stop orders.

Another type of conditional order is called a contingent order". Contingent orders allow you to combine different types of orders together and make them dependent on one another (e.g if one order is filled, then others are canceled).
Here are several examples of the different types of contingent you may enter with your broker:

• OCA/OCO - Once Cancels Another / One Cancels the Other
  You would place this order if you want to place two orders, but only have one execute. So you would place two orders today, and have one canceled if the other executed, and vice versa. When you wish to submit two orders together, and if one is filled (i.e. executed), the remaining order is canceled.
• OTA/OTO - One Triggers Another / One Triggers the Other
  You would place this type of order if you wanted to have two seperate trades, but only if you can make the first one work. When you wish to submit an order and then submit a second order after the first is filled.
• OTT - One Triggers Two
  When you wish to submit an order and then submit two more orders after the first is filled.
• OT/OCA - One Triggers an OCA Order
  When you wish to submit an order, and when the first order is filled, you wish to submit two orders together, and if one is filled (i.e. executed), the remaining order is canceled.
• OT/OTA - One Triggers an OTA Order
  When you wish to submit an order, and when the first order is filled, you wish to submit a second order, and then submit a third order after the second is filled.