A Stop-Loss Order (Or a Sell Stop Order)

question 3

Multiple Choice

A stop-loss order (or a sell stop order) :

• A) becomes a market order as soon as a trade takes place at this price,which is higher than the current market price
• B) is a limit sell order above the current market price
• C) is a sell order placed at the ongoing current ask price
• D) is a sell order placed at a price lower than the current bid price
• E) None of these answers are correct.

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Definitions:

Marginal Cost Curve

A graphical representation showing the change in total cost that comes with producing one more unit of an item.

Marginal Revenue Curve

A graph showing how marginal revenue varies as output quantity changes, important for understanding profit maximization.

Collude

When companies or organizations conspire or work together, often in secret, to control a market or manipulate prices at the expense of fair competition.

Nash Equilibrium

A concept in game theory where no player can gain by changing strategies if the other players keep their strategies unchanged, representing a situation of mutual best responses.