SIE practice questioneasyOrder Types
What happens if a stop order is triggered?
- AIt cannot be executed.
- BIt becomes a limit order.
- CIt is immediately canceled.
- DIt becomes a market order.✓ Correct answer
Explanation
Why D — It becomes a market order.
A stop order becomes a market order when triggered. A stop-limit order becomes a limit order, not a regular stop order. Stop orders are not canceled or unable to be executed once triggered.
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