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SIE: Trading & Settlement
SIE practice questionmediumTrade Execution

Which of the following orders does NOT guarantee execution?

  1. ABuy stop order
  2. BMarket order
  3. CSell short order
  4. DLimit order✓ Correct answer
Explanation

Why DLimit order

A limit order is executed only at a specified price or better, so it may not fill. Market orders and properly triggered stop orders do guarantee execution. Sell short is a trade direction, not an order type.

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