If you’re going to buy or sell a stock or commodity, Rule #1 is to never pay the market price. Instead, use contingent orders to squeeze out additional gains and ensure that you’re getting the best price possible.
Contingent orders offer you a way to buy or sell an asset only if a different event transpires.
Think of it this way. You want to be able to go to see a movie tonight, but you only want to see the 7:30 pm show. So, you call the box office and say, “Listen, movie man, I want to see The Big Movie tonight, but only if there are tickets for the 7:30 showing.” And the Movie Man says, “we’re sold out, but we have tickets at 10:45 pm.” And you say, “No dice, Movie Man! My order was contingent on that ticket being available at a particular time.”
In the market, you can say you want to buy a stock, but only if it's available at a specific price point (not the market price). This is called a limit order, and it will only happen if a seller makes a given price available.
The six most common contingent orders are the buy limit order, the sell limit order, the buy stop order, the sell stop order, the buy stop limit, and the sell stop limit. There's your homecoming court, right there.
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Finance: What is Contingent Liability?4 Views
Finance allah shmoop what is contingent liability All right you
know what a liability is right It's a debt it's
a promise you've made that you need to fulfill teo
pay someone and fulfilling it can be done with cash
or ah promise of delivering inventory or after you've sold
the home to the joneses An interesting family with oddly
large foreheads you know delivering good title to the home
to them right So you're fulfilling liability of producing your
home so what's a contingent liability Well think of it
is a call option or a put option on a
security A contingent liability is a derivative of some other
underlying being like another liability Well the most common contingent
liability would be a filed lawsuit that is more than
just an ambulance chasing securities lawyer hoping to get a
quick five hundred grand to go away google might be
willing to pay three billion dollars toe by ring That
wireless doorbell company started by some weirdo contingent upon ring
properly defending its lawsuit from honeywell which claims that they
own the patents on the process while the financial outcome
of that lawsuit is a contingent liability to the company
Ring and the outcome of the joneses moving into town
well is a worldwide dominance and the enslavement of all
human I mean that's what's at stake their people But 00:01:31.39 --> [endTime] not least they keep their front lawn looking nice
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