If the current market price is at 40 and I expect the price may go up to 45, but I don't want to buy it unless it actually exceeds 45. Can I put a buy-stop order at 45, so when the market price hits 45, a bid market order will be sent?
A conditional orders allow you to attach stipulations that must be true before an order can be submitted.
An example of a very complex conditional order might be:
- Buy 10 call options on MSFT with a specified limit price of 85 cents, but only when its share price <= $46.45 and Volume >25mm and the S&P 500 index was <= 2,000.
Not all brokers offer conditional orders.