Securities Trading and Order Types Quiz Test your knowledge on securities trading and order types with these quiz questions. Learn about market orders, stop-limit orders, short selling, and more.
#1
What is a market order in securities trading?An order to buy or sell a security at the current market price
An order to buy or sell a security at a predetermined price
An order to buy or sell a security after the market closes
An order to buy or sell a security with a delay
#2
Which of the following order types allows traders to set a specific price for buying or selling a security?Limit order
Market order
Stop order
Trailing stop order
#3
What is a short selling order?An order to sell a security the investor does not own
An order to buy a security and hold it for a long period
An order to sell a security only when its price goes above a certain level
An order to sell a security with a limit on the maximum loss
#4
What is a stop-limit order?An order to buy or sell a security at a specific price or better after a given stop price has been reached
An order to buy or sell a security at the current market price
An order to buy or sell a security at a predetermined price
An order to buy or sell a security with a delay
#5
What is a fill-or-kill order in securities trading?An order that must be executed immediately and in its entirety
An order that can be partially filled over multiple transactions
An order that allows the trader to specify a time frame for execution
An order that can be canceled if not executed within a certain time period
#6
What does T+2 settlement mean?Securities are settled two weeks after the trade date
Securities are settled two days after the trade date
Securities are settled two hours after the trade date
Securities are settled within two minutes after the trade date
#7
Which order type provides instructions to sell a security if it reaches a certain price or lower, limiting the loss?Market order
Limit order
Stop-loss order
Trailing stop order
#8
Which of the following order types adjusts automatically based on the market price, providing protection from downside risk?Stop order
Limit order
Market order
Trailing stop order
#9
What is a good-till-canceled (GTC) order?An order that expires at the end of the trading day if not executed
An order that remains in effect until it is either executed or canceled by the investor
An order that can only be executed during regular trading hours
An order that can be executed multiple times over a specific time period
#10
What is the purpose of a hidden order in securities trading?To conceal the size or price of an order from other market participants
To execute the order immediately at the current market price
To display the order on the trading platform for maximum visibility
To execute the order only when a specific condition is met
#11
What is a market-on-close order?An order that allows the trader to specify a time frame for execution
An order to buy or sell a security at the closing price
An order that can be partially filled over multiple transactions
An order that expires at the end of the trading day if not executed
#12
What does the term 'Slippage' refer to in securities trading?The difference between the expected price of a trade and the price at which the trade is actually executed
The delay in executing a trade due to market volatility
The maximum loss a trader is willing to accept
The rapid increase in the price of a security
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