Trading, Accounts & Prohibited ActsQuestion 228 of 398
In a fast-moving, volatile market, an investor is most concerned about certainty of execution and less concerned about the exact price. Which order best serves that priority?
a.A limit order, because it locks in a price
b.A market order, because it prioritizes immediate execution
c.A stop-limit order, because it may not execute
d.A good-till-canceled limit order held for weeks
Explanation
When immediate, certain execution matters most, a market order is appropriate because it fills promptly at the best available price. Limit and stop-limit orders prioritize price and risk not executing at all if the market moves away from the limit.
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