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CFA Level 2
Equity Investments

Choosing the Right Order Type for Trading

Easy Equity Market Structure Order Types And Instructions

John is a novice trader looking to place orders in the stock market. He wants to ensure that he purchases shares of XYZ Corporation at a specific price or better. John is considering different types of orders to accomplish this objective. Understanding the types of orders available to him is critical to achieving his trading goals.

Which type of order should John use if he wants to buy shares of XYZ Corporation only if the price reaches a specific level?

Hint

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