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Question: 1 / 400

In a market-not held order, what does "held" refer to?

An indefinite price guarantee

In a market-not held order, "held" specifically refers to the commitment to execute the order only when the price is favorable for the client, rather than immediately at the current market price. This type of order grants discretion to the trader on when to execute, allowing them to wait for a better price. Therefore, the correct choice regarding what "held" refers to is the commitment to not trade until the price improves.

In this context, the term means that the trader is not obligated to execute the order at the current market conditions but has the flexibility to hold off on executing until they find a more advantageous price. This kind of order is typically used to maximize potential gains in volatile markets. The other options do not accurately describe the nature of a market-not held order.

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A time limitation on the order

A commitment to not trade until the price improves

A restriction on trading volume

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