SIE practice questionhardOrder Types - Stop vs. Limit
A client wants to set a maximum purchase price and ensure execution only at or below that price. Which order should be placed?
- AStop order
- BMarket order
- CLimit order✓ Correct answer
- DNot-held order
Explanation
Why C — Limit order
Limit orders set maximums for buys (or minimums for sells). Market orders fill at best prices, stops trigger at a level but can fill at any price, not-held gives broker discretion.
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