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When is it appropriate to enter a market order in trading options?
  • a)
    When immediate execution of the trade is essential
  • b)
    When negotiating for a better price with the counterparty
  • c)
    When the bid/ask spread is wide and there is potential for a better fill
  • d)
    When trading options during the opening rotation of the market
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
When is it appropriate to enter a market order in trading options?a)Wh...
It is appropriate to enter a market order in trading options when immediate execution of the trade is essential. Market orders are filled as quickly as possible, without any negotiation process, ensuring the trade is executed promptly.Additional Fact: Traders may choose to enter a market order when they need to quickly enter or exit a position, especially in fast-moving markets. However, it is important to be aware that the fill price may differ from the expected price due to market fluctuations and liquidity.
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When is it appropriate to enter a market order in trading options?a)When immediate execution of the trade is essentialb)When negotiating for a better price with the counterpartyc)When the bid/ask spread is wide and there is potential for a better filld)When trading options during the opening rotation of the marketCorrect answer is option 'A'. Can you explain this answer?
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When is it appropriate to enter a market order in trading options?a)When immediate execution of the trade is essentialb)When negotiating for a better price with the counterpartyc)When the bid/ask spread is wide and there is potential for a better filld)When trading options during the opening rotation of the marketCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about When is it appropriate to enter a market order in trading options?a)When immediate execution of the trade is essentialb)When negotiating for a better price with the counterpartyc)When the bid/ask spread is wide and there is potential for a better filld)When trading options during the opening rotation of the marketCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When is it appropriate to enter a market order in trading options?a)When immediate execution of the trade is essentialb)When negotiating for a better price with the counterpartyc)When the bid/ask spread is wide and there is potential for a better filld)When trading options during the opening rotation of the marketCorrect answer is option 'A'. Can you explain this answer?.
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