Order Types
What happens when a sell stop order is triggered?
When a stop order is triggered (price reaches the stop price), it becomes a market order and executes at the next available price. This means the execution price may be above or below the stop price, especially in fast-m
Complete Analysis & Legal Rationale
When a stop order is triggered (price reaches the stop price), it becomes a market order and executes at the next available price. This means the execution price may be above or below the stop price, especially in fast-moving markets.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.