SIE practice questionmediumOrder Types
What happens when a buy stop order is triggered?
- AIt becomes a limit order to buy.
- BIt becomes a market order to buy.✓ Correct answer
- CThe order is canceled.
- DIt converts to a sell stop order.
Explanation
Why B — It becomes a market order to buy.
Once the stop price is reached, a buy stop order becomes a market buy order, executing at the next available price. It does not become a limit order, is not canceled, and does not switch to a sell order.
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