Placing a limit order with a broker is a good strategy for a volatile

QUESTION

Placing a limit order with a broker is a good strategy for a volatile day of trading in the stock market.

Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: Limit orders tell a broker to buy a particular security only below a certain price or to sell only above a certain price. Limit orders are useful when the market is fluctuating wildly but are only valid for one day.