#1
What is a market order in securities trading?
An order to buy or sell a security at the current market price
ExplanationImmediate execution at current market price
#2
Which of the following order types allows traders to set a specific price for buying or selling a security?
Limit order
ExplanationSetting a fixed price for execution
#3
What is a short selling order?
An order to sell a security the investor does not own
ExplanationSelling borrowed securities for profit
#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
ExplanationSetting a price limit after a stop condition
#5
What is a fill-or-kill order in securities trading?
An order that must be executed immediately and in its entirety
ExplanationImmediate complete execution
#6
What does T+2 settlement mean?
Securities are settled two days after the trade date
ExplanationSettlement in two days after trading
#7
Which order type provides instructions to sell a security if it reaches a certain price or lower, limiting the loss?
Stop-loss order
ExplanationSelling to limit potential losses
#8
Which of the following order types adjusts automatically based on the market price, providing protection from downside risk?
Trailing stop order
ExplanationAutomatic adjustment for downside risk
#9
What is a good-till-canceled (GTC) order?
An order that remains in effect until it is either executed or canceled by the investor
ExplanationPersistent order until execution or cancellation
#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
ExplanationConcealing order details from others
#11
What is a market-on-close order?
An order to buy or sell a security at the closing price
ExplanationTrading at the closing price
#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
ExplanationDifference between expected and executed price