SIE practice questionmediumOrder Types - Stop-Limit Orders
What happens when a stop-limit order is triggered?
- AIt executes at any price
- BIt becomes a market order immediately
- CIt is canceled
- DIt becomes a limit order at the specified price✓ Correct answer
Explanation
Why D — It becomes a limit order at the specified price
When triggered, a stop-limit order becomes a limit order at or better than the limit price. It does not become a market order or execute at any price.
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