Trading Mechanism

1. Trading life cycle starts with

• a) Execution of trade.
• b) Confirmation of trade.
• c) Placing of order.
• d) settlement of trade.
• Pluto

2. What is the sequence of Trading cycle on stock exchange

• a) Conversion into trade -> order placing --> payout
• b) Contacting broker --> order placing --> payout
• c) Placing order --> trade conversion --> trade payout
• c) Placing order --> trade payout --> trade conversion

3. Which of the following are not covered in components of order management

• a) Trading member
• b) Price negotiated
• c) Quantity negotiated
• d) Action ( Buy/Sell )

4. Which statement is not true. i) Limit order does not set the entry / exit price. ii) Market order without protection means trade are executed till it reaches a specified level. iii) In stop order, client enter the prices, trigger price + limit price.

• a) Only (i)
• b) (i) +(ii)
• c) (i) +(ii)+(iii)
• iv) None of the Above

5. Client identity, time, quantity are the components of

• a) Contract Note
• b) Order
• c) Security Note
• d) Trade Contract

6. When the stop loss gets triggered

• a) When first traded price in normal market exceeds trigger price.
• b) When last traded price in normal market reaches or exceeds trigger price.
• c) When last traded price in secondary market reaches trigger price
• d) When any traded price in normal market reaches or exceeds trigger points.

7. Which of the following statement is not true in case of immediate/ cancel order

• a) member can buy/sell securities in the same day.
• b) Paritial match is possible for order.
• c) member to buy/sell securities as soon as order is released.
• d) Order cancelled if it doen't match

8. Order confirmation is given by

• a) Broker buying/selling securities
• b) Client selling/buying securities
• c) Exchange allots a unique number.
• d) Depository allots a unique number.

9. What is best sell price?

• a) Price at which securities were bought
• b) Lowest price of all sell order.
• c) Highest price of all sell order.
• d) Lowest price of all buy order.

10. Active order are. a) orders which are matched b) orders which are entered in order book c) order which are executed

• i) only a

• ii) a+c

• iii) b+c

• iv) a, b, c