medium · Market Microstructure
A trader places a stop-limit order to sell with a stop price of $45.00 and a limit price of $44.50. The stock gapped down from $46.00 to open at $44.00.
What is the status of this order at the market open?
- It executes right away at the opening price of $44.00.
- It is triggered and becomes a resting limit order at $44.50.
- It is cancelled because the opening price gapped past the stop level.
- It executes immediately at the specified limit price of $44.50 per share.
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