SIE practice questionhardOrder Types
A customer enters a buy stop-limit order with a stop price of $30 and a limit of $30.10. The market moves from $29.90 to $30.15 in one trade. What will happen?
- AThe order is canceled.
- BThe order is executed at $30.15.
- CThe order is triggered but may not execute if the price skips above the limit.✓ Correct answer
- DThe order is executed at $30.
Explanation
Why C — The order is triggered but may not execute if the price skips above the limit.
The stop-limit buy order is triggered at $30, but will only execute at $30.10 or less. If the price moves directly from $29.90 to $30.15, the order may not execute at all because no trade occurred within the limit range.
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