n NISM Certifications
XIII NISM Series XIII
Medium

Which of the following is true about a 'Stop Loss Order'?

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

Options

  1. A

    It is an order to buy above the market price

  2. B

    It is an order to sell below the market price

  3. It is an order to buy or sell once the price reaches a specified level to limit loss

    Correct answer

  4. D

    It is an order to execute immediately at current market price

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

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