Contingent or Emergency Orders: How do they work

Spark Global Limited reports:

Or a command requires an event to occur to trigger its execution.
They depend on certain things happening. If this does not happen, the order will never be executed and will be held by your broker. These can also be called “conditional orders”.
Here’s how NASDAQ defines a contingent order:
“An order that can only be executed in the event of another event; That is, ‘Sell on Oct 45, call 7-1/4, stock 52 or lower.'”

A stop loss is a basic example of a contingent order.
Stop order execution depends on the stock reaching your stop price. As long as the stock does not reach the stop-loss price, the order is not executed.
For example, you enter an order to buy 100 shares of XYZ at $10 and then append two contingent orders: a stop loss order and a profit order.
The stop is $9, and the stop is $13.
In this case, your regular buy orders at $10 are immediately sent to the market for execution, while your stop loss and profit orders sit on your broker’s server, waiting for their unexpected events to occur.
As long as the price does not reach $9 or $13, your stop loss and stop gain will not be exercised.
Let’s say the price goes down to $9. Your stop loss order is activated and sent to the market. After the stop is executed, your profit order will be cancelled.
Or the type of order
Any instruction that requires certain conditions to be met before execution is a contingent instruction.
There are several different types of these orders, and your access to them depends on the type of order provided by your agent.
The simplest contingent order is the classical limit order.
Limit orders are conditional on buying or selling only at a specific price or better. A $10 buy order is executed only if the price is below or below $10, otherwise it stays in the order book.
The next stage is stop-loss and profit orders.
They are attached to your main order as a stand. Their conditions are similar to limit order.
For example, a stop loss may be conditional on placing a sell order in the market when the price reaches $8.00.
Most traders and investors use only these basic order types. However, contingent orders can get a lot more complicated if you want them.