NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism
Under the exchange trading system, which order type is executed only if the specified price or better is available and any unexecuted part stays in the order book?
A limit order is the correct type. It executes only at the stated price or better, and any part not matched remains in the order book until filled or cancelled. Market and IOC orders do not behave this way.
- AMarket order
- BLimit orderCorrect
- CImmediate or cancel order
- DStop loss market order
Explanation
A limit order specifies a price limit and rests in the book until matched or cancelled. A market order executes at best available prices, and an IOC order cancels any unexecuted portion immediately.
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