Order types · Glossary
Stop-limit order
A stop that triggers a limit order at a set price.
Definition and explanation
A stop-limit combines a stop trigger with a limit order. When the stop price is reached, a limit order is placed at the specified limit price. If the market moves too quickly, the limit may not fill or may fill only partially. The behaviour depends on the venue's order rules and how fast the market moves through the relevant levels.
Example
A trader can set a stop at a break level with a limit that caps the sell price; if price gaps beyond the limit, the order may not execute.
Educational information only. Trading terms and contract mechanics can vary by venue and market. Verify the rules of the provider you use.