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SIE: Trading & Settlement
SIE practice questionmediumOrder Types

A customer places a sell limit order at $60. The stock is currently trading at $55. When will the order be executed?

  1. AOnly if the price falls below $55
  2. BOnly if the price rises to $60 or higher✓ Correct answer
  3. CImmediately at the current market price
  4. DAt any price
Explanation

Why BOnly if the price rises to $60 or higher

A sell limit order sets a minimum price at which the order can be executed. It will not fill immediately, since the stock is trading below the limit price.

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