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Answer: c) Stop-loss sell order at $30
A **stop-loss sell order at $30** is the best match. It allows you to continue holding the stock while it rises, but once the price falls to the stop level, the order is triggered to help you exit the position. A limit or stop-limit order would not be as suitable because they do not guarantee execution once the trigger is reached.
Author: Manit Arora
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Q-149.1. Assume you have a long position in a stock with a current market price of $35. You have two goals. First, to retain ownership as long as the stock continues to go up. Second, to exit the position completely if the stock drops below $30. Which order BEST meets your dual objectives?
A
a) Sell market order
B
b) Sell limit order at $37
C
c) Stop-loss sell order at $30
D
d) Stop-and-limit sell order at $30
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