Chapter 04 · Section 4.1

When a stop order is executed?

Buy 3 CBOE BankAm June 15 calls stop-loss 3 1/2.

A stop order, whether buy-stop or sell-stop, is executed when the market price gets:

• a) as high as specified or higher.
  No. This is true for buy-stop orders, but not for sell-stop orders.
  b) as low as specified or lower.
  c) as bad as specified or worse.
  d) as good as specified or better.

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