SIE practice questioneasyOrder Types
A customer wants to sell a stock only if it drops to a certain price. Which order type should be used?
- AMarket order
- BStop order✓ Correct answer
- CLimit order
- DFill-or-kill order
Explanation
Why B — Stop order
A stop order becomes a market order once a specified price is reached. Market orders execute immediately. Limit orders set minimum prices to sell. Fill-or-kill is for immediate execution in full.
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