Question

A customer enters an order to sell 100 TCB at 49 stop limit. Before the order, TCB was trading at 49.25. Subsequent trades are reported on the tape as follows: TCB 49.10, 48.75, 48.85, 49, 49.25 What trade triggered the order

Answer 1

Answer: 48.75

Step-by-step explanation:

The trade that triggered the order is 48.75. Since the stop limit in the question has been given as 49, it should be noted that the trade that'll trigger the order will be the first trade which is below the stop price.

The first trade here is 49.10 but that can't be used as it's higher than the stop limit which is 49. So, the answer is 48.75.