SIE practice questioneasyTrade Execution
A customer wants to ensure a stock is not sold below a certain price. Which order type is most appropriate?
- ABuy stop order
- BSell stop order
- CBuy limit order
- DSell limit order✓ Correct answer
Explanation
Why D — Sell limit order
A sell limit order is set above the current market price and executed only at that price or higher, preventing a sale below the specified price. Stop orders are generally used to limit losses or protect gains.
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