What is a Contingency Order?A contingency order is an order that you can use to place a trade. This order is different than other orders because it comes with a trigger. For instance if you want to buy a stock in the beginning of the day and sell it at the end you can buy it with a market order and sell it with a contingency order that will be activated towards the end of a day. Contingency orders can be helpful to anyone looking to make a creative order, but that does not always mean they work out the best. Sometimes the Kiss motto (Keep It Simple Stupid) is the best way to approach things.That being said they can really be a great benefit. I like to use these orders to put a stop on options. For instance I will buy an option at market value and place a contingency order to sell it. The contingency order will only be activated once a stock hits a certain level. This way I do not have to worry about where to put the stop on my option, I can just concentrate on the stock.
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