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What is the advantage of using a limit order in options trading?
  • a)
    It guarantees immediate execution of the trade
  • b)
    It allows for negotiation with the counterparty
  • c)
    It provides more control over the execution price
  • d)
    It is suitable for trading during the opening rotation of the market
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the advantage of using a limit order in options trading?a)It g...
The advantage of using a limit order in options trading is that it provides more control over the execution price. Traders can set a specific price at which they are willing to buy or sell, aiming for a better price than the current market price.Additional Fact: Limit orders can be particularly useful when trading options with wider bid-ask spreads. By placing a limit order at a lower price when buying or a higher price when selling, traders have the opportunity to potentially save money on their trades.
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What is the advantage of using a limit order in options trading?a)It guarantees immediate execution of the tradeb)It allows for negotiation with the counterpartyc)It provides more control over the execution priced)It is suitable for trading during the opening rotation of the marketCorrect answer is option 'C'. Can you explain this answer?
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