What Are Conditional Orders?

Creating a conditional order allows you to establish an "either/or" relationship between your orders, as is possible with OCA (one cancels another) orders. Conditional orders can also enable you to establish an "if/then" relationship between your orders, as is possible with an OTA (one triggers another) order. You can also combine "either/or" and "if /then" relationships within your orders, as is possible with OT/OCA (One triggers an OCA order) orders.

Conditional orders let you combine two or three individual orders that will, if filled, either cancel or trigger additional orders. Conditional orders are available for both stocks and single-leg option orders (in option-approved accounts).

When trading stocks online, go to your trading platform and place conditional trade orders. Here is an example of how to place conditional orders in TD Ameritrade

1. To create a conditional order, go to Stocks or Options (under Trade) and enter an order as you normally would - specify the action (buy, sell), quantity, symbol, and order type (e.g. limit, stop limit, stop market).

2. To indicate that you want your order to be conditional, select the checkbox next to Make this a conditional order.

3. Next, select the type of conditional order you want to place and enter the order details for the second and (if applicable) third legs of your conditional order.

4. When your order details are complete, select Review order to confirm and place your conditional order. (Express trading is not available for conditional orders).

5. Review your conditional order on the order confirmation page, then select Place Order, Change Order, or Do Not Place Order.

The following types of conditional orders are available:

Once Cancels Another (OCA)

One Triggers Another (OTA)

One Triggers Two (OTT)

One Triggers an OCA (OT/OCA)

One Triggers an OTA (OT/OTA)

Conditional Order Strategies:

Conditional orders allow you combine individual orders into an automated entry and exit strategy.

Want to submit a Bracket Order?

These orders allow you to establish a protective exit point (with a stop order) and a target exit point (with a limit order) for an existing position.

Want to submit your entry and exit as one conditional order?

These orders allow you to submit an entry order and include both a protective exit point (with a stop order) and a target exit point (with a limit order).

Protecting your gains and limiting your losses

Part of a sound trading strategy is clearly defining your entry and exit points, and placing the right orders to put your ideas to work.

Looking to protect your gains and limit losses?

These order types can help you limit your risk by activating if the market moves against you.

Looking to protect your gains and limit losses?

These order types can help you limit your risk by activating if the market moves against you.

Be responsive to market conditions

Want to let market conditions determine what to buy or sell?

If you are deciding between two securities, you can enter a limit order for both and let market conditions dictate which one is executed and which one is canceled.

Want to place orders based on the movement of other securities or indices?

If you want certain market conditions or stock/index movements to establish your entry and exit strategies, this order entry tool may be for you.