Stop Limit Order
trading
An order that activates at a stop price, then becomes a limit order that only fills at the limit price or better.
A stop limit order has two prices: the stop price that activates the order and the limit price that controls execution. Once the stop is triggered, the order becomes a limit order and will only fill at the limit price or better.
Stop limit orders give more price control than stop market orders, but they add execution risk. In a fast move, the stop may trigger after the market has already moved beyond the limit price, leaving the order unfilled.
Traders use stop limit orders for breakouts, planned exits, and risk management where execution price matters. They should be configured with awareness of liquidity, spread, volatility, and exchange-specific trigger rules.
Related terms
Limit Order
→An order to buy or sell an asset at a specified price or better, without guaranteeing execution.
trading
Market Order
→An instruction to trade immediately against available orders, prioritizing execution over a guaranteed price.
trading · exchange
Order Book
→A real-time list of buy and sell orders organized by price level on an exchange.
trading
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
finance · trading