SIE practice questioneasyOrder Types
A customer wants to sell a stock only if it drops to $50 or lower. Which order type should be used?
- ASell stop order✓ Correct answer
- BSell limit order
- CBuy stop order
- DBuy limit order
Explanation
Why A — Sell stop order
A sell stop order triggers a sale if the price drops to or below a specific point. A sell limit only executes above a set price, buy stop/buy limit are for purchasing, not selling.
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