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3I0-012 · Question #140

What recommendation does the Model Code make to banks accepting a stop-loss order?

The correct answer is A. The Model Code emphasizes the importance of clear, concise documentation and on-going lines of. See the full explanation below for the reasoning.

Question

What recommendation does the Model Code make to banks accepting a stop-loss order?

Options

  • AThe Model Code emphasizes the importance of clear, concise documentation and on-going lines of
  • BBank management must guarantee a fixed price execution to the counterparty.
  • CThe Model Code recommends that only experienced dealers should be allowed to take such orders.
  • DBank staff must secure the approval of the counterparty's management to accept such orders.

How the community answered

(33 responses)
  • A
    79% (26)
  • B
    12% (4)
  • C
    6% (2)
  • D
    3% (1)

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