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Glossary Term: CONTINGENCY ORDER

Definition(s) for CONTINGENCY ORDER:


1. ) a term often used in general equities, it refers to order to buy one security, if the trader can sell another, normally given that certain price limits or conditions reach a certain level.

2. ) An order to execute a transaction in one security that depends on the price of another security. An example might be: 'Sell the XYZ May 60 call at 2, contingent upon XYZ stock being at or below $59 1/2.'



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