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Can I place an order that is conditional on another order being executed?

For example, I want to buy stock A for $5.00 (limit) and I want to buy stock B for $10.00 (limit). Is there an way to link the execution of both orders such that either both are executed or none are?

Thank you in advance!

  • It depends on the capabilities of your broker. Mine (a large self-serve online broker) does not have that option. Brokers that have more customized services might accommodate such an order. – D Stanley Mar 14 '18 at 1:00
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Most Stock Exchanges I know of don't allow such transactions. These are difficult to match as the matching algorithm works on individual stocks.

A broker may do something fanciful if the requirement is large, however this will come at a cost; i.e. he may hold the order in his application till the prices for both the stocks have gone down sufficiently and then release your order to exchange. If the pairs are of interest to quite a few some one may create a single derivative across both the stocks and offer this to individuals. The order size of derivatives is generally large.

This question gives a basic understanding of how stock exchanges match orders. How do exchanges match limit orders?

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I have used stock/stock combination spread orders to take long/short pairs positions where I am seeking a specific spread difference in dollars. This order could be used for your set up except that it would be at a limit of $15 for buying both stocks rather than a specific limit price of $5 and $10 for each equity. If it's essential that you have both at the respective limit price of $5 and $10 and assuming you're at the computer rather than at a day job, set a limit price alert at $15. If it fires, check the respective prices. If one is above its limit, reset price alert and wash, rinse, repeat.

My suggestion is to call your broker and ask if they offer a conditional order that achieves exactly what you want. It would be more time efficient than the spread combo.

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Yes, it is called OCO order cancels order. And the next question is; does your broker provide that option? I've only seen it at one broker and they've since been bought out twice and it is no longer available.

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