Series 7 practice questioneasyOrder Types 1
Which statement is TRUE regarding order types?
- AA customer enters a buy limit order below the current market. The order will execute only at the limit price or lower✓ Correct answer
- BA customer enters a sell stop order. Once triggered, it becomes a market order
- CA market order guarantees the execution price
- DA stop-limit order guarantees execution once triggered
Explanation
Why A — A customer enters a buy limit order below the current market. The order will execute only at the limit price or lower
Limit orders protect price but do not guarantee execution. A buy limit order is filled only at the stated limit price or lower.
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