Say You Placed an At-Market Order to Buy a Quantity

question 66

Multiple Choice

Say you placed an at-market order to buy a quantity of futures contracts.The counterparty in your resulting futures contract is:

• A)another trader
• B)a bank
• C)your broker
• D)the clearinghouse
• E)the ASX.

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Definitions:

Caveat Emptor

“Let the buyer beware.”

Unmerchantable

Referring to goods or products that fail to meet minimum quality standards for sale to consumers or are otherwise unfit for their intended purpose.

Merchantability

A warranty that goods sold meet reasonable quality and usage standards as per the market.

Implied Warranty

A legal assumption that a product will meet certain standards of quality and reliability even if not explicitly stated.