Stop-Limit Orders

A stop-limit order combines the features of a stop order and a limit order. It only executes at your specified limit price or better once the stop price is reached.

How It Works

You set two prices: the stop price (trigger) and the limit price (minimum acceptable sell price). When the stop price is hit, the order becomes a limit order instead of a market order.

When to Use

• When you want control over the minimum price you’ll accept.
• In less volatile markets where execution is likely.

Limitations

• May not execute at all if the price moves quickly past your limit.
• Not effective during extreme market gaps.

Disclaimer: For educational purposes only. This is not investment advice. Trading involves risk.