Alternative Order
Think of an alternative order as an either-or instruction to a broker. So you'll give your broker two options and if one of the options is executed, then the other order is immediately cancelled. As in “do one or the other of these, but for goodness sake DON’T DO BOTH!!!!”
It's like if your friend says he'd like to go to either Arby's or Taco Bell. Either one might be fun, but going to both probably points to a long night spent sitting on the modern day phone booth. In practical terms, an alternative order might go something like this: "either buy shares for New Tech Co. if it reaches $10 per share, or buy shares of Old-Tyme Car Maker Inc. if it hits $15 per share." The broker will then buy whichever stock hits its target first, then ignore the other option.
Related or Semi-related Video
Finance: What are Limit Order, Sell Limi...7 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
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