Answer-first summary for fast verification
Answer: Execute at the best available price once a trade occurs at the specified or better price.
A market-if-touched order executes at the best available price once a trade occurs at the specified or better price. A stop order executes at the best available price once a bid/offer occurs at the specified or worse price. A discretionary order allows a broker to delay execution of the order to get a better price. A fill-or-kill order executes the order immediately or not at all.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
No comments yet.
An investor with a long position in a futures contract wants to issue instructions to close out the position. What instruction would cause a market-if-touched order to be used?
A
Execute at the best available price once a trade occurs at the specified or better price.
B
Execute at the best available price once a bid/offer occurs at the specified or worse price.
C
Allow a broker to delay execution of the order to get a better price.
D
Execute the order immediately or not at all.