n NISM Certifications
NSM General NISM
Medium

Which order has a better chance of execution — Stop Loss order or Stop Loss Limit order?

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

Options

  1. Stop Loss Order

    Correct answer

  2. B

    Stop Loss Limit Order

  3. C

    Both equal chance

  4. D

    None of the above

Why this is the answer

Stop Loss Limit orders may not execute if the market moves past the limit; Stop Loss orders trigger immediate market execution.

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