Any type of order that is associated with a trigger condition (trigger point/points) in addition to the trading price, quantities and expiration limits. Conditional orders are submitted for execution (in limit or market form) once a preset event takes place. The specified condition(s) can relate to price, volume, time, and so on. Conditional orders allow investors to plan more sophisticated trading strategies depending their own criteria and preferences.
Conditional orders include stop-loss orders, profit-stops, tick-sensitive orders, etc. For example, a tick sensitive-order is usually submitted conditional upon the last price change.
