Knowledge Base

← Market Functioning and Organization

Questions

Which order type allows an investor to specify a maximum price for a purchase or a minimum price for a sale, but risks not being executed if the market does not reach that level?

Market order
Limit order
Stop-loss order
Iceberg order

Which mechanism protects against excessive price movements by suspending trading when the price breaches predefined thresholds?

The FIFO rule
The trading halt
The iceberg order
The order book

What is the main characteristic of a market order?

It guarantees a precise execution price
It offers maximum priority and immediate execution
It is always executed at a fixed price
It must be executed before end of day

What is distinctive about an OCO (One Cancels Other) order?

It requires immediate full execution
It links two orders where the execution of one cancels the other
It remains active until a specified date
It conceals the total quantity

Categorize items by dragging them to the appropriate zones

Items to categorize:

Market order
Stop-loss order
Day order
Categories:

Orders defined by their relationship to price

Triggered orders

Orders defined by their time validity

Iceberg order

Click to see answer

A stop-loss order automatically converts into a market order as soon as the threshold is reached or breached.

True
False

A GTD (Good Till Date) order remains valid until a date specified by the investor.

True
False