Which type of trading order is designed to automatically sell a security if its price falls below a predetermined level? Option: Stop-Loss Order, Trailing Stop Order, Market Order, Limit Order

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Which type of trading order is designed to automatically sell a security if its price falls below a predetermined level?

Stop-Loss Order

Trailing Stop Order

Market Order

Limit Order

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What is the purpose of a Stop Loss order in stock trading?

"To track the stock's performance over time"

"To buy shares at a predetermined price"

"To limit losses by exiting the position at a specific price"

"To maximize profits by selling at the highest price"

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What is the purpose of a trailing stop-loss order?

To limit potential losses

To secure profits as the trade moves favorably

To enter a trade at a specific price point

To automatically exit a trade at the end of the trading day

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Which of the following types of orders are moved to the normal trading session at the opening price if not matched during the pre-open session?

"Market Orders"

"All of the above"

"Limit Orders"

"Stop-Loss Orders"

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What is the difference between a 'Limit' order and a 'Market' order?

A Limit order guarantees execution, while a Market order may not be filled if the price moves unfavorably.

A Limit order is placed on the bid side, while a Market order is placed on the ask side.

A Limit order is used for intraday trading, while a Market order is for long-term investing.

A Limit order specifies the maximum price you are willing to pay, while a Market order buys at the best available price.

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Which product type requires specifying both a stop-loss order and an intraday trading timeframe?

CO

NRML

MIS

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