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A stop order that becomes a limit order when triggered, protecting your price.
Why It Matters
A stop-limit gives you two prices: the stop (the trigger) and the limit (the worst price you'll accept once triggered). Compared with a stop-loss, which becomes a market order and almost always fills, a stop-limit becomes a limit order - so it won't sell below your limit. The tradeoff is real: if the stock gaps straight past your limit, the order can sit unfilled while the price keeps falling. You trade fill certainty for price certainty.
Key Points
- Triggers into a limit order, not a market order
- You set both a stop price and a limit price
- Protects your price but may not fill in a fast move
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Stop-Loss & Stop-Limit Orders
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Related Terms
Common Questions
A stop order that becomes a limit order when triggered, protecting your price. A stop-limit gives you two prices: the stop (the trigger) and the limit (the worst price you'll accept once triggered). Compared with a stop-loss, which becomes a market order and almost always fills, a stop-limit becomes a limit order - so it won't sell below your limit.
A stop-limit gives you two prices: the stop (the trigger) and the limit (the worst price you'll accept once triggered). Compared with a stop-loss, which becomes a market order and almost always fills, a stop-limit becomes a limit order - so it won't sell below your limit. The tradeoff is real: if the stock gaps straight past your limit, the order can sit unfilled while the price keeps falling. You trade fill certainty for price certainty.
Triggers into a limit order, not a market order
You set both a stop price and a limit price
Protects your price but may not fill in a fast move