SIE practice questionhardOrder Types
A customer wishes to buy shares only if a stock breaks above resistance at $50, but does not want to pay more than $52. Which order should be used?
- ABuy stop-limit order with stop at $50 and limit at $52✓ Correct answer
- BBuy market order at $50
- CBuy limit order at $52
- DBuy stop order at $52
Explanation
Why A — Buy stop-limit order with stop at $50 and limit at $52
The stop triggers at $50; the limit ensures the purchase does not exceed $52. The other orders don't ensure both conditions are met.
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