Question
8. Hawkeye Inc. stock has a Bid at $39.95 and an Ask at $40.05.You have placed a Stop Loss (stop-loss) order to sell at $40.
8. Hawkeye Inc. stock has a Bid at $39.95 and an Ask at $40.05.You have placed a Stop Loss (stop-loss) order to sell at $40.
What are you telling your broker?
a. Telling broker to sell at $40 to avoid further downside loss.
b. Telling broker to buy more at $40
Given the market prices, will your order be executed
a. Trade would be executed when another trade has been executed at $41 or more, at which time, your Stop-loss order becomes a market order to buy.
b. Trade would be executed when another trade has been executed at $40 or less, at which time, your Stop-loss order becomes a market order to sell.
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