Order Types (Limit, Market, Stop) MCQs January 8, 2026September 29, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. : What is a market order in trading? (A) An order placed at a specific price (B) An order executed immediately at the best available price (C) An order that activates when a condition is met (D) An order with no time limit 2. : What is a limit order? (A) An order executed at any price (B) An order placed to buy or sell at a specific price or better (C) An order that cancels automatically (D) An order that ignores market depth 3. : A stop order is primarily used for? (A) Mining rewards (B) Triggering trades only when the price reaches a certain level (C) Trading only stablecoins (D) Paying gas fees 4. : Which order type guarantees execution but not price? (A) Limit order (B) Market order (C) Stop-limit order (D) Iceberg order 5. : Which order type guarantees price but not execution? (A) Limit order (B) Market order (C) Stop order (D) OCO order 6. : A stop-loss order is designed to? (A) Lock in profits (B) Minimize potential losses by selling when price falls (C) Buy at the highest price (D) Eliminate trading fees 7. : A take-profit order is used to? (A) Cancel all trades (B) Sell once a target profit price is reached (C) Stop trading entirely (D) Buy below market price 8. : If a trader wants to buy Bitcoin only at $30,000 or lower, which order type is used? (A) Stop order (B) Market order (C) Limit order (D) Trailing stop 9. : A market order is most suitable when? (A) Price certainty is more important than execution (B) Execution speed is more important than exact price (C) The market is closed (D) Liquidity is low 10. : A stop-limit order combines features of? (A) Stop order and limit order (B) Market order and stop order (C) Limit order and iceberg order (D) Market order and trailing stop 11. : Which order type might fail to execute if price never reaches the set level? (A) Market order (B) Limit order (C) Stop order (D) Fill-or-kill order 12. : Which order type helps protect profits in a rising market? (A) Stop-loss (B) Trailing stop order (C) Market order (D) IOC order 13. : A stop-market order becomes what once triggered? (A) Market order (B) Limit order (C) Pending order (D) Iceberg order 14. : Which order executes partially and cancels the rest? (A) Good-till-cancelled (B) Fill-or-kill (C) Immediate-or-cancel (D) Stop-limit 15. : Which order must be filled entirely or cancelled immediately? (A) FOK (Fill or Kill) (B) IOC (Immediate or Cancel) (C) GTC (Good Till Cancelled) (D) OCO (One Cancels the Other) 16. : Which order type remains active until executed or cancelled by the trader? (A) IOC (B) Market order (C) GTC order (D) Stop order 17. : What does OCO (One Cancels the Other) order do? (A) Cancels all trades (B) Places two linked orders where one cancels if the other executes (C) Guarantees best price always (D) Stops all market activity 18. : Which order is best to exit a trade automatically if price drops below a set level? (A) Stop-loss order (B) Market order (C) Limit order (D) GTC order 19. : Which order type should a trader use if they want immediate execution regardless of price? (A) Market order (B) Limit order (C) Stop-limit order (D) Trailing stop 20. : A stop-limit order helps reduce? (A) Fees (B) Risk of unexpected execution prices (C) Market volatility (D) Trading volume 21. : Which order type is most useful in highly volatile markets to ensure immediate action? (A) Market order (B) Limit order (C) Stop-limit order (D) GTC order 22. : Which order type is NOT guaranteed to execute? (A) Market order (B) Limit order (C) IOC order (D) Stop-market order 23. : A trader places a buy stop order at $25,000 for Bitcoin. The order executes when? (A) Price rises to $25,000 (B) Price falls below $25,000 (C) Price stays sideways (D) Price drops to $20,000 24. : Which order type is commonly used to avoid large losses during sudden market drops? (A) Market order (B) Limit order (C) Stop-loss order (D) GTC order 25. : What does a trailing stop do? (A) Locks in gains by adjusting stop level as price moves (B) Executes only at exact target price (C) Eliminates spreads (D) Works only on centralized exchanges 26. : A buy limit order is placed when a trader wants to? (A) Buy only if the price goes higher (B) Buy at or below a specific price (C) Buy at any available price (D) Buy immediately above market 27. : A sell limit order is placed when? (A) The trader wants to sell immediately (B) The trader wants to sell at or above a specific price (C) The trader wants to sell at any price (D) The market order is unavailable 28. : Which order type is risky in thin liquidity markets due to slippage? (A) Limit order (B) Market order (C) Stop-limit order (D) OCO order 29. : A stop-limit order might fail if? (A) Market price skips past the limit price (B) Order book is full (C) Network is congested (D) Fees are high 30. : Which order is useful for setting both a profit target and a stop-loss simultaneously? (A) OCO order (B) Market order (C) GTC order (D) IOC order 31. : Which order type executes instantly without price restrictions? (A) Market order (B) Limit order (C) Stop-limit order (D) IOC order 32. : Which order remains active for a specified time duration only? (A) IOC (B) GTC (C) Day order (D) Stop-loss 33. : A buy stop order is usually placed? (A) Above the current market price (B) Below the current market price (C) At the same price as market (D) With no price 34. : A sell stop order is usually placed? (A) Above the market price (B) Below the market price (C) Equal to last trade (D) Ignored by exchanges 35. : Which order type is most prone to slippage during high volatility? (A) Market order (B) Limit order (C) Stop-limit order (D) OCO order 36. : Which order is most reliable for ensuring a minimum sell price? (A) Limit sell order (B) Market order (C) Stop order (D) Trailing stop 37. : Which order type is commonly used to short-sell assets? (A) Buy limit order (B) Sell stop order (C) Market order only (D) GTC order 38. : A stop-limit buy order activates only when? (A) The stop price is reached, then it becomes a limit order (B) The limit price is reached instantly (C) The order is cancelled by the system (D) Trading volume decreases 39. : Which order type allows traders to control both risk and reward? (A) OCO (B) Market order (C) GTC order (D) Trailing stop 40. : A trader places a trailing stop with 5% offset. This means? (A) Stop follows price upward by 5% margin (B) Stop remains fixed forever (C) Stop cancels automatically (D) Stop executes instantly 41. : Which order type is ideal when liquidity is high and execution speed is priority? (A) Market order (B) Stop-limit order (C) Limit order (D) IOC order 42. : Which order may result in partial fills depending on available liquidity? (A) Market order (B) Limit order (C) Stop order (D) OCO order 43. : Which order type is least suitable during flash crashes? (A) Stop-market order (B) Stop-limit order (C) Limit order (D) Trailing stop 44. : Which order can be set to execute at market close? (A) Market-on-close order (B) Limit order (C) IOC order (D) Stop order 45. : What does a “Good till Date” order mean? (A) Valid only for the day (B) Expires after a specified date and time (C) Executes instantly (D) Runs forever 46. : A hidden order that only shows part of its size in the order book is called? (A) Iceberg order (B) OCO order (C) GTC order (D) Stop-limit order 47. : Which order is often used by institutional traders to hide large trades? (A) Iceberg order (B) Market order (C) Stop order (D) IOC order 48. : Which order executes only at the opening of trading? (A) Market order (B) Limit-on-open order (C) GTC order (D) FOK order 49. : Which order type is best for entering a breakout trade above resistance? (A) Buy stop order (B) Market order (C) Sell stop order (D) Iceberg order 50. : Which order type is best for protecting gains while still allowing upside potential? (A) Trailing stop order (B) Market order (C) GTC order (D) OCO order