I placed my first “conditional” buy order today with Etrade. Basically, whatever stock hits my target first gets executed. I don’t have a lot of time to watch the market this week so this will save me some hassle.
I have up to $1150 I want to spend on either of two companies so I set a “One Cancels All” buy order for CVX and OMI. If OMI hits 28.01 , 40 shares will be purchased and the order for CVX cancelled. If CVX hits 100.01, 11 shares will be purchased and the order for OMI will be cancelled.
Another benefit of this strategy is that I need less cash on hand. I only need to keep cash of $1150 in my account for this order as opposed to twice that amount if I had two separate orders.
Has anyone else placed conditional orders? Etrade has 5 categories: Bracketed, Contingent, One-Cancel-All, One-Triggers-All, One-Triggers-OCO. I will be exploring some of these options in the next few months.