Order Matching and Execution MCQs September 11, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. In stock exchanges, order matching refers to: (A) Matching buy and sell orders (B) Matching dividends with investors (C) Matching companies with brokers (D) Matching IPOs with SEBI 2. Which system is used for automatic order matching in exchanges? (A) Auction system (B) Screen-based trading system (C) Manual trading floor (D) Paper-based settlement 3. The principle of order matching is based on: (A) Price-time priority (B) Random allocation (C) Dividend priority (D) Broker selection 4. In price-time priority, the first criteria for matching is: (A) Time of order (B) Price of order (C) Broker code (D) Company’s dividend history 5. If two orders have the same price, matching is done based on: (A) Time of entry (B) Company size (C) Sector preference (D) Stock index value 6. Market orders are executed at: (A) Best available price (B) Fixed price only (C) Broker-determined price (D) Next day settlement price 7. Limit orders are executed at: (A) Any price available (B) Specific price or better (C) Broker’s chosen price (D) Random price 8. Stop-loss orders are executed when: (A) Stock price crosses a trigger level (B) Stock pays dividends (C) Market closes for the day (D) Broker demands margin 9. Which type of order is most likely to be executed instantly? (A) Limit order (B) Market order (C) Stop-loss order (D) GTC order 10. Which system ensures transparency in order matching? (A) Open outcry system (B) Electronic order book system (C) Broker’s internal matching (D) Offline settlement 11. Matching orders without manual intervention is known as: (A) Algorithmic trading (B) Automated order matching (C) Block trading (D) Reverse repo 12. Good Till Cancelled (GTC) orders remain valid until: (A) The same trading day (B) They are executed or cancelled by trader (C) Exchange rejects them (D) Dividends are declared 13. Immediate or Cancel (IOC) orders are: (A) Executed partially or cancelled immediately (B) Valid for one week (C) Only for IPOs (D) Only for intraday 14. Fill or Kill (FOK) orders are: (A) Executed fully or cancelled immediately (B) Executed at broker’s discretion (C) Applicable only for futures (D) Settled in T+2 cycle 15. In continuous trading sessions, orders are matched: (A) Continuously throughout the day (B) Only at the end of the day (C) Once a week (D) Only during IPO 16. In call auction sessions, orders are matched: (A) At a single equilibrium price (B) At multiple random prices (C) At broker’s chosen price (D) Next day settlement 17. Order execution speed depends on: (A) Liquidity in the market (B) Company dividends (C) Broker license (D) SEBI’s annual report 18. High-frequency trading mainly relies on: (A) Speed of order execution (B) Dividend declarations (C) Fundamental analysis (D) Manual trading floor 19. Which of the following is NOT an order type? (A) Market order (B) Limit order (C) Dividend order (D) Stop-loss order 20. An unmatched order remains in: (A) Order book (B) Broker’s bank account (C) SEBI’s file (D) Clearing corporation 21. Iceberg orders are used to: (A) Hide the full order quantity (B) Show entire order at once (C) Execute only in futures (D) Prevent dividends 22. Block deals involve: (A) Large trades executed separately from regular order book (B) Small retail trades (C) IPO subscriptions (D) Mutual fund NAV orders 23. Order matching in stock exchanges eliminates: (A) Counterparty risk of traders (B) Dividends (C) Corporate governance (D) Shareholding pattern 24. Which entity ensures clearing and settlement after order execution? (A) Stock exchange (B) Clearing corporation (C) Broker’s office (D) Investor Protection Fund 25. Which type of order ensures execution certainty but not price certainty? (A) Market order (B) Limit order (C) GTC order (D) FOK order 26. Which type of order ensures price certainty but not execution certainty? (A) Limit order (B) Market order (C) IOC order (D) Stop-loss order 27. Partial execution of orders happens in: (A) IOC orders (B) GTC orders (C) Dividend payout (D) Rights issue 28. Matching engine in an exchange refers to: (A) Software that pairs buy and sell orders (B) Broker’s trading desk (C) Clearing corporation staff (D) Dividend calculation unit 29. Which order type is most useful for risk management? (A) Stop-loss order (B) Market order (C) Dividend order (D) Bonus order 30. Auction mechanism is used for: (A) Settlement of failed trades (B) IPO allotment (C) Mutual funds (D) Corporate dividends 31. Which participants’ orders are given priority in matching? (A) Higher price buy orders and lower price sell orders (B) Lower price buy orders and higher price sell orders (C) Random selection (D) Broker’s choice 32. Matching of orders in NSE is done through: (A) NEAT system (B) NIFTY system (C) Depository system (D) Clearing bank 33. Matching of orders in BSE is done through: (A) BOLT system (B) SEBI system (C) RBI system (D) Mutual fund NAV 34. Hidden orders are also called: (A) Iceberg orders (B) GTC orders (C) FOK orders (D) Market orders 35. If a sell order is placed at ₹100 and a buy order exists at ₹105, execution will occur at: (A) ₹100 (B) ₹105 (C) ₹102.5 (D) Random price 36. If a buy order is placed at ₹100 and a sell order exists at ₹95, execution will occur at: (A) ₹95 (B) ₹100 (C) ₹97.5 (D) Random price 37. Algorithmic trading executes orders using: (A) Predefined computer programs (B) Manual brokers (C) SEBI staff (D) Clearing banks 38. Dark pools are: (A) Private trading venues where large orders are matched anonymously (B) Government securities markets (C) Retail brokerage houses (D) Commodity warehouses 39. Which type of order helps avoid slippage? (A) Limit order (B) Market order (C) IOC order (D) GTC order 40. Which type of order is highly exposed to slippage risk? (A) Market order (B) Limit order (C) GTC order (D) Stop-loss order 41. Which order type can convert into a market order once triggered? (A) Stop-loss order (B) Limit order (C) IOC order (D) GTC order 42. Which order type is best suited for traders who cannot monitor markets constantly? (A) GTC order (B) Market order (C) IOC order (D) FOK order 43. Orders placed but not executed remain in: (A) Order book (B) Clearing bank (C) Settlement file (D) Dividend book 44. Order-driven markets function mainly on: (A) Matching of public buy and sell orders (B) Dealer’s quotations (C) RBI’s interest rate policy (D) Dividend schedules 45. Quote-driven markets function mainly on: (A) Dealer-provided bid-ask quotes (B) Investor-to-investor trades (C) Corporate governance reports (D) Dividend payouts 46. Hybrid markets combine: (A) Order-driven and quote-driven systems (B) IPOs and Mutual funds (C) Futures and commodities (D) Dividends and bonuses 47. Execution certainty is highest in: (A) Market orders (B) Limit orders (C) Stop-loss orders (D) GTC orders 48. Price certainty is highest in: (A) Limit orders (B) Market orders (C) IOC orders (D) Stop-loss orders 49. A broker’s responsibility during execution is to: (A) Ensure best possible price for client (B) Decide company dividends (C) Settle corporate disputes (D) Control SEBI rules 50. The final confirmation of order execution is given through: (A) Contract note (B) Dividend slip (C) Bonus certificate (D) Rights issue letter