SIE practice questionmediumSTOP and STOP-LIMIT Orders
Which order becomes a market order once a specified price is reached?
- AFill-or-kill order
- BLimit order
- CStop order✓ Correct answer
- DGood-until-canceled order
Explanation
Why C — Stop order
A stop order activates as a market order when the stop price is hit. A limit order only executes at a specific price. Fill-or-kill is about timing, not price triggers, and good-until-canceled simply refers to order duration.
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