n NISM Certifications
VIII NISM Series VIII
Medium

Mr. Ashu has bought 100 shares of ABC at Rs 980 per share. He expects the price to go up but wants to protect himself if the price falls. He does not want to lose more than Rs. 1000 on this long position in ABC. What should Mr. Ashu do?

Practice question from NISM Series VIII - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Place a stop loss order for 100 shares of ABC at Rs 990 per share

  2. Place a stop loss order for 100 shares of ABC at Rs 970 per share

    Correct answer

  3. C

    Place a limit buy order for 100 shares of ABC at Rs 990 per share

  4. D

    Place a limit sell order for 100 shares of ABC at Rs 970 per share

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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NISM Series VIII - Mock Test 4