Question

In: Finance

A characteristic of market orders is execution ______ and price ______. Whereas a characteristic of limit...

A characteristic of market orders is execution ______ and price ______.

Whereas a characteristic of limit orders is execution _____ and price _____.

A. None of these - a limit order needs to hit a stop price before execution can occur.

B. Certainty, Uncertainty; Certainty; Certainty

C. Certainty; Uncertainty; Uncertainty; Certainty

D. Certainty; Certainty; Uncertainty; Uncertainty

E. Uncertainty; Uncertainty: Certainty; Certainty

Solutions

Expert Solution

Option C is correct

1. Market Orders are the orders that executed based on the market which is very certain but the price depends on the market dynamics which keeps on chnages dynamically. hence price is uncertain

2. Limit Orders are the orders which are executed with some fixed price that is set up. The limit order executes only when the market price reaches that lock in value. Hence the execution is uncertain. If the market price reaches to that lock in price (fixed) then only it will execute. Hence, the price will be certain.


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