I've got a holding in my play account that is approaching its limit price. I have always thought that when it triggered, I would then sell a specific (different) losing position at the same time. And lately, I learned about Conditional Orders, specifically O-T-O, one triggers other. ("Wow, how convenient is that!")
Read about it. I'm not always connected to the market in the first couple of hours -- most of my trades really do happen almost unexpectedly, on a morning gap-up -- so it seems to fit my need perfectly. Tried to construct such a trade order this morning.
And I learned ... that's NOT how they work. You can't have two different holdings. You apparently can only connect two different order TYPES for the SAME holding. Sell it, enter a repurchase order automatically, for example.
I can't see how that's the least bit useful!
SO, THE QUESTION: UNDER WHAT CONDITIONS \*IS\* THAT TYPE OF ORDER USEFUL? When would I want to automate a limit sell and a buy or the same stock? Or a limit sell and another limit sell? Who is the primary user of such an order ... daytraders?
And IS THERE an order type that connect two sale orders for DIFFERENT POSITIONS?
Thanks for trying to follow this...