SIE practice questionmediumOrder Types
Which order type combines a stop order with a limit order, so the order enters the book as a limit order once triggered?
- AStop-limit order✓ Correct answer
- BStop order
- CLimit order
- DMarket order
Explanation
Why A — Stop-limit order
A stop-limit order becomes a limit order when the stop price is hit. A stop order becomes a market order, a limit order is only price-specific, and market orders execute immediately.
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