Which order will be executed automatically at the current bid or ask price?
Click on the arrows to vote for the correct answer
A. B. C. D.B
The answer to the question is B. Market order. A market order is an order to buy or sell a security immediately at the current market price. Market orders are executed at the best available price in the market at the time the order is placed. This means that a market order will be executed automatically at the current bid or ask price, depending on whether it is a buy or sell order.
The other options listed in the question are limit orders, stop orders, and good-till-cancelled (GTC) orders. These types of orders are not executed automatically at the current bid or ask price.
A limit order is an order to buy or sell a security at a specific price or better. If the current market price does not reach the specified price of the limit order, the order will not be executed.
A stop order is an order to buy or sell a security when the market price reaches a specified price level, known as the stop price. Once the stop price is reached, the stop order becomes a market order and is executed at the best available price in the market.
A good-till-cancelled (GTC) order is an order to buy or sell a security that remains in effect until it is either executed or cancelled by the investor. GTC orders are typically used for longer-term trading strategies and are not executed automatically at the current bid or ask price.
In summary, a market order is the only type of order that will be executed automatically at the current bid or ask price.