You Have Bought A Stock At Inr 100 And Want To Sell It As Soon As It

1.	You Have Bought A Stock At Inr 100 And Want To Sell It As Soon As It Hits Inr 110. If You Want To Guarantee That Your Sell Order Is Filled, Which Of The Following Types Of Order Should You Place?
Answer» In this case you cannot use limit order because limit order doesn't guarantee execution if there are similar LIMIT order EXISTS then it will wait for its TURN. You cannot either use MARKET Order because it didn't give you Price guarantee and will fill on CURRENT price. Solution is to use "STOP" order with stop price 110, as soon as price reaches 110 it will get ACTIVATE but in case of high volatility it can fill more or less 110 if price is moving very fast. In this case you cannot use limit order because limit order doesn't guarantee execution if there are similar LIMIT order exists then it will wait for its turn. You cannot either use Market Order because it didn't give you Price guarantee and will fill on current price. Solution is to use "STOP" order with stop price 110, as soon as price reaches 110 it will get activate but in case of high volatility it can fill more or less 110 if price is moving very fast.

You Have Bought A Stock At Inr 100 And Want To Sell It As Soon As It Hits Inr 110. If You Want To Guarantee That Your Sell Order Is Filled, Which Of The Following Types Of Order Should You Place?

Answer»

In this case you cannot use limit order because limit order doesn't guarantee execution if there are similar LIMIT order EXISTS then it will wait for its TURN. You cannot either use MARKET Order because it didn't give you Price guarantee and will fill on CURRENT price. Solution is to use "STOP" order with stop price 110, as soon as price reaches 110 it will get ACTIVATE but in case of high volatility it can fill more or less 110 if price is moving very fast.

In this case you cannot use limit order because limit order doesn't guarantee execution if there are similar LIMIT order exists then it will wait for its turn. You cannot either use Market Order because it didn't give you Price guarantee and will fill on current price. Solution is to use "STOP" order with stop price 110, as soon as price reaches 110 it will get activate but in case of high volatility it can fill more or less 110 if price is moving very fast.

You Have Bought A Stock At Inr 100 And Want To Sell It As Soon As It Hits Inr 110. If You Want To Guarantee That Your Sell Order Is Filled, Which Of The Following Types Of Order Should You Place?

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment