n NISM Certifications
VII NISM Series VII
Medium

All orders come into the trading system as _________ into the order book.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Active

    Correct answer

  2. B

    Passive

  3. C

    Limit

  4. D

    Market

Why this is the answer

All orders initially enter the system as active orders. If they find a match immediately, they are executed; otherwise, they remain in the order book as passive orders, awaiting execution based on price-time priority.

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