SIE practice questionmediumOrder Types and Execution
Which type of order guarantees execution but does NOT guarantee price?
- ALimit order
- BStop-limit order
- CMarket order✓ Correct answer
- DFill-or-kill order
Explanation
Why C — Market order
A market order guarantees execution because it will be filled at whatever the best available price is at that moment. However, it does not guarantee a specific price. Limit orders (A) guarantee price but not execution — they only fill at the specified price or better. Stop-limit orders (C) also have price restrictions that may prevent execution. Fill-or-kill orders (D) must be filled entirely and immediately or canceled, so they do not guarantee execution either.
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