SIE practice questionmediumOrder Types - Stop-Limit Orders
When does a stop-limit order become a live limit order?
- AWhen the order is canceled
- BWhen the limit price is reached
- CAt the open of trading
- DWhen the stop price is reached✓ Correct answer
Explanation
Why D — When the stop price is reached
A stop-limit order becomes a limit order once the stop price is triggered. The trade then executes at the specified limit price or better. The other choices are unrelated.
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