Types of Orders Flashcards

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1
Q

If the market trades at or through the preset stop price, the order will be activated. Once activated, it becomes a limit order and may be executed only at a specified price or better.

A

Stop-Limit Order

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2
Q

Entered by customers who are trying to prevent a large loss or protect a profit on an existing stock position

A

Stop (Loss) Orders

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3
Q

Order that may be executed only at the specified price or better

A

Limit Order

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4
Q

May only be executed at the limit price or lower

A

Buy Limit Order

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5
Q

May only be executed at the limit price or higher

A

Sell Limit Order

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6
Q

Anticipate that the security will fall in value (i.e., bearish), but they will lose money if the position rises

A

Short sellers

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7
Q

Order that is executed at the best available price

A

Market Order

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8
Q

Order often used for stocks that have active (liquid) markets in which the spread is narrow

A

Market Order

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9
Q

Order is placed below the current market price of the security and is used to limit a loss or protect a profit on a long stock position

A

Sell Stop Order

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10
Q

A combination of both stop and limit orders that presents a risk/reward trade-off

A

Stop-Limit Order

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11
Q

Order where client doesn’t specify price

A

Market Order

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12
Q

Customers want to buy/sell securities at a specific price

A

Limit Order

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13
Q

Contingent order, which means that it won’t receive execution unless the market rises or falls to a certain price

A

Stop Order

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14
Q

If this order is activated, it becomes a market order and the investor is guaranteed that the order will be executed, however, not guaranteed as to the price of execution

A

Stop Order

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15
Q

Order is placed above the current market price of the security and is used to limit a loss or protect a profit on a short sale

A

Buy Stop Order

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16
Q

Order where investors would rather not receive execution

A

Stop (Loss) Order