An Order That Can Be Used to Protect Profits or to Limit

question 130

Multiple Choice

An order that can be used to protect profits or to limit losses is called a ____ order.

• A)market
• B)limit
• C)stop
• D)fill-or-kill

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Definitions:

Currency Swap

A Currency Swap is a financial derivative that involves the exchange of principal and interest payments in one currency for those in another, commonly used by companies to manage foreign exchange risk.

Exchange Rate Risk

The potential for loss due to fluctuations in the foreign exchange rates affecting investments or transactions.

Economic Conditions

The state and dynamics of the economy at a given time, reflected in indicators like growth rates, unemployment, inflation, and consumer confidence.

Spot Market

A public financial market in which commodities or financial instruments are traded for immediate delivery and payment.