An investor places a conditional order on a stock that will be submitted or canceled if set criteria are met, which are defined by the investor and received by the broker.
We use conditional orders when we buy a straight stock. Those instructions will look like this:
|Action to Take: Using a conditional OTA order:
Our conditional orders are also known as OTA (“One Triggers Another”) or OTO (“One Triggers One”). Once the initial condition is met, our order is placed, and our trailing stop order is immediately triggered.
Note: While we refer to the conditional order as a “Stop Market order,” some brokers will call it a “Stop on Quote.”