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Questions and Answers
What is the primary purpose of a stop-loss sell order?
What is the primary purpose of a stop-loss sell order?
- To buy a security at a specific price
- To sell a security at a higher price
- To lock a gain
- To limit a potential loss (correct)
At what price would a stop-loss sell order be triggered?
At what price would a stop-loss sell order be triggered?
- At the best price available
- At the offer price
- At the bid price
- At the pre-defined limit or below (correct)
What is the opposite of a stop-loss sell order?
What is the opposite of a stop-loss sell order?
- Stop-gain sell order
- Stop-loss buy order (correct)
- Limit order to buy
- Market order to sell
What happens when a stop-loss sell order is activated?
What happens when a stop-loss sell order is activated?
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What is the benefit of using a stop-loss order?
What is the benefit of using a stop-loss order?
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What is the relationship between the bid price and the ask price?
What is the relationship between the bid price and the ask price?
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What can be inferred from the data in the table?
What can be inferred from the data in the table?
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What is the percentage change in the price?
What is the percentage change in the price?
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What is the significance of the 'Worst' column in the table?
What is the significance of the 'Worst' column in the table?
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What is the relationship between the 'Best' and 'Worst' prices?
What is the relationship between the 'Best' and 'Worst' prices?
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