n NISM Certifications
NSM General NISM
Medium

When a Stop Loss buy order is entered, the trigger price must be ________ .

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

Options

  1. Higher than current market offer price

    Correct answer

  2. B

    Higher than current market bid price

  3. C

    Lower than current market offer price

  4. D

    Lower than current market bid price

Why this is the answer

For a stop-loss buy, the trigger price should be above the current offer to activate the order once price rises.

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