Which of the following statements concerning market, stop loss and limit orders are correct?
I. Market orders guarantee both a price and an execution.
II. Market orders guarantee an execution but not a price.
III. Limit orders guarantee a price but not an execution.
IV. Stop-loss orders may never be executed.

Question

Quizplus · Accepted Answer

II, III, and IV are correct. Market orders guarantee execution but not a specific price. Limit orders guarantee a price but not execution. Stop-loss orders may not be executed if the market price skips over the stop price.

Which of the Following Statements Concerning Market, Stop Loss and Limit