Listen to a Business English Dialogue About Either or order
Avery: Hi Thomas, have you heard about either-or orders in finance? They’re instructions given to a broker to execute a trade at a specified price, but only if certain conditions are met.
Thomas: Oh, interesting. Can you give an example of how either-or orders work?
Avery: Sure, let’s say you want to buy a stock at $50, but only if it reaches $45 within the next week. You would place an either-or order specifying these conditions to your broker.
Thomas: Are either-or orders commonly used by investors?
Avery: They’re not as common as market or limit orders, but they can be useful for investors who want to take advantage of specific price movements or mitigate risks.
Thomas: How do either-or orders differ from other types of orders?
Avery: Market orders are executed at the prevailing market price, while limit orders specify a price at which the trade should be executed. Either-or orders add an additional condition that must be met for the trade to occur.
Thomas: Are there any risks associated with using either-or orders?
Avery: Yes, there are. If the specified conditions are not met, the trade may not be executed, leaving the investor without the desired position or missing out on potential opportunities.
Thomas: Can either-or orders be canceled or modified?
Avery: Yes, investors can usually cancel or modify either-or orders before they are executed, provided the specified conditions have not been met.
Thomas: Thanks for explaining, Avery. Either-or orders seem like a flexible tool for investors to control their trades based on specific criteria.
Avery: You’re welcome, Thomas. They offer a way to automate trading decisions and respond to market movements without constant monitoring.