Skip to main content

Stop-Limit Order

In short

Stop order that converts to a limit order — controls fill price but risks no fill

A stop-limit order sets two prices: a trigger ($45) and a limit ($44). When the stock hits $45, it tries to sell, but only at $44 or better. Safer on price, but if the stock crashes past $44, you don't get out at all.

Stop-limit orders combine stop and limit order features. When the stop price is triggered, a limit order is placed. Advantage: you control the worst fill price. Risk: in fast markets, the stock may gap below your limit, leaving the order unfilled.

Related concepts

  • Stop Order — A stop order is your automatic exit. Set a stop at $45 on a $50 stock — if it falls to $45, your order triggers and sells at market price. It protects you from bigger losses but can fill below $45 in a fast-moving market.
  • Limit Order — A limit order says 'buy this stock, but only if the price drops to $50 or less.' You control the price but risk not getting filled if the stock never hits your target.
  • Slippage — You see a stock at $50 and hit buy. By the time your order fills, it's $50.08. That $0.08 is slippage — the price moved between when you decided to buy and when the order actually filled.
  • Market Hours — US stock markets are open Monday–Friday, 9:30 AM – 4:00 PM ET. There's also pre-market (4 AM – 9:30 AM) and after-hours (4 PM – 8 PM) trading, but with much less volume and wider spreads.