SIE practice questionmediumOrder Types
A customer places a 'stop-limit' order. If the stop price is triggered, the order becomes:
- AA GTC (good-till-cancelled) order.
- BA market order to buy or sell immediately.
- CAn order that is immediately cancelled.
- DA limit order to buy or sell at a specified price or better.✓ Correct answer
Explanation
Why D — A limit order to buy or sell at a specified price or better.
A stop-limit order triggers a limit order when the stop price is reached. It does not become a market order, does not automatically cancel, and GTC is a separate time-in-force instruction rather than the defining feature of a stop-limit order.
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