Investing term
What is Stop-limit order?
A protective order that triggers a limit order when the price reaches a threshold.
A stop-limit order is a protective two-part order: when the price hits your "stop" trigger, it activates a limit order to buy or sell at your specified limit price or better. It combines a trigger with price protection — but the protection is also its weakness, since in a fast-moving market the price can blow past your limit and the order may never fill.
For example
You set a sell stop-limit triggered at $45 with a $44 limit; if the stock gaps straight to $40, the order activates but won't sell below $44 — leaving you still holding.
Stop-limit order is taught hands-on in Stage 7 — Brokers, Accounts & Getting Started.
See the lesson →