Advanced Orders for Stock Investors
Stock brokers have added sophisticated capabilities to the existing repertoire of orders that are available for stock investors. One example is advanced orders, which provide investors with a way to use a combination of orders for more sophisticated trades. An example of an advanced order is something like, “Only sell stock B, and if it sells, use the proceeds to buy stock D.” You get the idea.
One brokerage firm has the following on its website, and it’s likely that more firms will do the same. Inquire with yours and see the benefit of using advanced orders such as the following:
“One order cancels another order”: In this scenario you enter two orders simultaneously with the condition that if one order is executed, the second order is automatically cancelled.
“One order triggers another order”: Here you submit an order, and if that order is filled, another order is automatically submitted. Many brokers have different names for these types of orders, so ask them if they can provide such an order.
Other types of advanced orders and order strategies are available, but you get the picture. Talk to your brokerage firm and find out what’s available in your particular account. Investors need to know that today’s technology allows them to have more power and control over the implementation of buying and selling transactions.