Question

Richard wants to buy additional stock in Rancor Mobil, but the price of the stock has fluctuated in recent days. He wants to make sure he does not pay too much. His analysis suggests that $80 per share is the highest price he should pay. Richard is likely to place a _____ with his broker.

Answer 1

Limit order.

Step-by-step explanation:

A limit order is an order executed in part or in full when a price level previously defined by it has been reached. In case of a partial execution, the order remains active until executed in full within its validity period or until cancelled.

Limit order in the L2 module :

- executed only at the specified price and only with Deltastock as a liquidity provider ;

- when another liquidity provider is used, the order is executed as a market order when the requested price is met and with the provider first to quote that price.

- in case of a partial execution of a limit order in the L2 module, the remaining amount constitutes a new limit order, valid until executed or cancelled.