Chapter 04 · Section 4.1

Stop-limit Orders

Which of the following statements is correct?

• a) A stop-limit order becomes a market order if the trigger price is touched.
  No. If that were true, there would be no difference between a stop order and a stop-limit order. As you know, they are not synonymous.
  b) A stop-limit order becomes a limit order if the trigger price is touched.

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