SIE practice questionmediumOrder Types
A client wants to sell if the price drops to $30, but does not want to sell for less than $29. Which order type should be used?
- ASell limit order at $30
- BSell stop order at $29
- CSell stop-limit order with stop at $30 and limit at $29✓ Correct answer
- DMarket order at open
Explanation
Why C — Sell stop-limit order with stop at $30 and limit at $29
A stop-limit order triggers a limit order at the stop price, ensuring it won't execute below the limit. Standalone stop or limit orders do not provide both conditions. A market order gives no price control.
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