Types of Orders (Market, Limit, Stop-loss, etc.) MCQs January 8, 2026September 11, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. A market order means: (A) Buying or selling at a fixed price (B) Buying or selling immediately at current market price (C) Order valid for future only (D) Order placed with conditions 2. Which order allows traders to set a maximum buying price or minimum selling price? (A) Market order (B) Limit order (C) Stop-loss order (D) Day order 3. A stop-loss order is designed to: (A) Lock profits (B) Minimize losses by selling when price falls to a set level (C) Buy at market price (D) Cancel trade automatically 4. Which order becomes a market order once a specified price is reached? (A) Limit order (B) Stop order (C) Day order (D) Fill-or-kill order 5. Which type of order must be executed immediately in full or canceled? (A) Market order (B) Limit order (C) Fill-or-kill order (D) Stop-loss order 6. An order valid only for one trading day is called: (A) Day order (B) GTC order (C) Stop order (D) IOC order 7. What does GTC (Good Till Cancelled) order mean? (A) Order valid only for one day (B) Order valid until manually canceled (C) Order valid until stop-loss is triggered (D) Order valid for one week 8. An Immediate or Cancel (IOC) order means: (A) Must be filled fully or not at all (B) Must be executed immediately, partial allowed (C) Only for futures (D) Automatically converts into limit order 9. Which order sets both stop-loss and target price together? (A) Trailing stop order (B) Bracket order (C) IOC order (D) Market order 10. A trailing stop order moves the stop price: (A) Fixed, never changes (B) Upward with rising price to lock profits (C) Downward with falling price only (D) At random intervals 11. Which order type is best for long-term investors who don’t track market daily? (A) Day order (B) GTC order (C) IOC order (D) Market order 12. Which type of order helps in automatic profit booking? (A) Stop-loss order (B) Limit order (C) Take-profit order (D) IOC order 13. Which type of order is preferred when execution speed is more important than price? (A) Limit order (B) Market order (C) Stop order (D) Bracket order 14. An order that executes only if entire quantity is available is: (A) Fill-or-kill (B) Day order (C) IOC order (D) Stop-loss order 15. Which order ensures buying below or selling above the current price? (A) Market order (B) Limit order (C) Stop-loss order (D) Day order 16. What is the key disadvantage of market orders? (A) Execution is not guaranteed (B) Execution may happen at unfavorable prices (C) They are not valid intraday (D) They require high brokerage 17. Which order helps protect profits once the price moves in favorable direction? (A) Trailing stop order (B) Market order (C) Day order (D) IOC order 18. What is a stop-limit order? (A) Combines stop order with limit order (B) Executes at any price once triggered (C) Valid for one day only (D) Cancels automatically if stop not hit 19. In which order does execution depend on price reaching a specific trigger? (A) Market order (B) Limit order (C) Stop order (D) IOC order 20. A discretionary order gives broker freedom to: (A) Decide timing and price of execution (B) Only execute at limit price (C) Cancel without client’s permission (D) Convert into GTC order 21. Which order is best for reducing emotional trading? (A) Market order (B) Stop-loss order (C) Day order (D) IOC order 22. An order that is executed only after another order is executed is: (A) Contingent order (B) IOC order (C) Stop order (D) GTC order 23. An order that specifies minimum quantity to be executed is: (A) Market order (B) Limit order (C) Minimum quantity order (D) IOC order 24. Which order is most risky in highly volatile markets? (A) Market order (B) Limit order (C) Stop-loss order (D) IOC order 25. An order that allows execution in parts is called: (A) IOC order (B) Limit order (C) Partial-fill order (D) Market order 26. In a bracket order, the stop-loss is placed: (A) Below buy price or above sell price (B) At market price (C) Without trigger (D) As IOC order 27. Which type of order is useful for breakout trading? (A) Limit order (B) Stop order (C) GTC order (D) Day order 28. If an investor wants to buy shares at or below a particular price, he should use: (A) Market order (B) Limit order (C) Stop-loss order (D) IOC order 29. Which order may remain pending in the system for weeks until executed or canceled? (A) Day order (B) Market order (C) GTC order (D) IOC order 30. Which order allows booking profit automatically once a certain level is reached? (A) Stop-loss order (B) Take-profit order (C) Market order (D) Fill-or-kill order 31. Which type of order cannot guarantee execution? (A) Market order (B) Limit order (C) IOC order (D) Day order 32. Which order is most suitable for traders wanting instant execution? (A) Limit order (B) Market order (C) GTC order (D) Stop-limit order 33. A buy stop order is placed: (A) Below current price (B) At or above current market price (C) Randomly (D) Only intraday 34. A sell stop order is placed: (A) Above current price (B) Below current market price (C) Equal to market price (D) Always as IOC 35. Which type of order combines a buy/sell order with a stop-loss? (A) Bracket order (B) GTC order (C) Market order (D) Fill-or-kill order 36. What is the main advantage of limit orders? (A) Faster execution (B) Price control (C) Guaranteed execution (D) Zero brokerage 37. Which order helps traders who cannot monitor market actively? (A) Market order (B) Stop-loss order (C) IOC order (D) Fill-or-kill order 38. Which order may not execute fully if liquidity is low? (A) Market order (B) IOC order (C) Fill-or-kill order (D) Limit order 39. A trailing stop order adjusts: (A) Trigger price with market movements (B) Dividend payouts (C) Interest rates (D) Expiry date 40. Which order helps in avoiding sudden large losses? (A) Market order (B) Limit order (C) Stop-loss order (D) IOC order 41. What is the risk in stop-limit order? (A) Order may not execute if limit price not reached (B) Always executes at bad price (C) Valid for one day only (D) Too costly 42. Which order requires execution immediately but allows partial fulfillment? (A) IOC order (B) FOK order (C) GTC order (D) Day order 43. Which order is suitable when price certainty is more important than execution certainty? (A) Market order (B) Limit order (C) IOC order (D) Stop-loss order 44. Which order executes as soon as it is entered, at the best available price? (A) Market order (B) Limit order (C) GTC order (D) Bracket order 45. Which type of order is good for traders who want exact entry or exit price? (A) Market order (B) Limit order (C) Stop-loss order (D) IOC order 46. A protective stop order is also known as: (A) Stop-loss order (B) Bracket order (C) Market order (D) GTC order 47. Which order is automatically canceled if not executed during the day? (A) Day order (B) GTC order (C) IOC order (D) Stop-limit order 48. A trailing stop order is most useful when: (A) Price moves sideways (B) Price trends strongly (C) Market is closed (D) Investor wants fixed return 49. Which order type is good for protecting capital against big downside moves? (A) Market order (B) Stop-loss order (C) IOC order (D) Fill-or-kill order 50. Which order is often used by professional traders to automate strategies? (A) Bracket order (B) Market order (C) Day order (D) GTC order