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What type of order carries the greatest price risk to the client? a) All or none...

What type of order carries the greatest price risk to the client?

a) All or none b) Limit order c) Market d) Stop-buy order

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Answer #1
  • Price risk is the risk that the value of a security or investment will decrease.
  • This can be reduce doing various hedging mesure such as Shorselling, Call option put option. Throguh future market
  • In this case Limit order, Market order, Stop buy order all different type of order,For example market order means Investor giving instruction to brocker buy at market price at the moment where as limit order means buybor sell share at a price quoted, if giving Limit order price will sent to exchange when the price hits so none of the order will reduce price risk. These can be used with technical indicators to create strategy
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