Conditional Order (CO)

A conditional order (CO) is an order to buy or sell a security based on a particular market event such as a stock reaching its 52-week high or low, trading at a certain volume level or price, or increasing/decreasing by a specific % or $ change.

You might give conditional stop or limit orders on a stock, on an options contract, jointly on a stock and option, or on a stock and an index.

Note: Conditional orders are available for stocks, ETFs and options, although the conditions available for option orders will be limited to bid and ask.

Example

Company X is currently trading at $23.

You would like to buy Company X, but think it is currently overpriced.

You decide you would like to buy the stock if it reaches its 52-week low of $19.

Therefore, you enter a conditional order to buy 100 shares of Company X if and when it reaches its 52-week low.

While you are away from your computer, Company X's price drops to its 52-week low of $18 and triggers your CO - executing a market order purchase for 100 shares of Company X at your desired price.

Advanced orders are only available for listed equities trading at $1.00 per share or higher, exchange-traded funds (ETFs), and options.

Investors should consider the investment objectives, risks, charges, and expenses of an Exchange Traded Fund (ETF) carefully before investing. A prospectus contains this and other information about the ETF and can be obtained from the issuer. The prospectus should be read carefully before investing.

Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in Scottrade's Options Application and Agreement, Brokerage Account Agreement, and Characteristics and Risks of Standardized Options (available at your local Scottrade branch office or from the Options Clearing Corporation at 1-888-OPTIONS or by visiting www.888options.com). All option accounts require prior approval by Scottrade. Market volatility, volume, and system availability may impact account access and trade execution. Supporting documentation for any claims will be supplied upon request.