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 the best available price at that moment, but it does not guarantee a specific price. Limit and stop-limit orders include price restrictions that may prevent execution. Fill-or-kill orders must be filled entirely and immediately or canceled, so they do not guarantee execution either.
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