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With a stop-limit order, once the stop price is touched in the market, the stop-limit order becomes a limit order to buy or to sell

With a stop-limit order, once the stop price is touched in the market, the stop-limit order becomes a limit order to buy or to sell at the limit price. Which of the following are true?

Multiple Choice

  • In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks.

  • A stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast-moving markets where prices fluctuate wildly.

  • The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-the-counter (OTC) market.

  • The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed.

  • All of the options.

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