SIE practice questionmediumOrder Types
A client wants to buy only if a stock price rises above current levels, indicating a breakout. Which order is best?
- ASell stop order
- BBuy limit order
- CBuy stop order✓ Correct answer
- DSell limit order
Explanation
Why C — Buy stop order
A buy stop order is placed above the market and triggered if the stock rises to the stop price. Buy limit orders execute at the limit price or lower, so they're not suitable for breakout strategies.
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