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SIE practice questionmediumOrder Types

A customer places a 'stop-limit' order. If the stop price is triggered, the order becomes:

  1. AA GTC (good-till-cancelled) order.
  2. BA market order to buy or sell immediately.
  3. CAn order that is immediately cancelled.
  4. 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 (B), is not cancelled (C), and while it can be GTC (D), that is not unique to this feature.

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