What is a stop-limit order?

A stop-limit order combines the features of both a limit and a stop order. A limit order is an order to buy or sell a certain security for a specific price. 1 One thing to keep in mind is that you cannot set a plain limit order to buy a stock above the market price because a better price is already available.

What is the difference between a stop price and a limit order?

In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered. Thus, a stop-limit order will require both a stop price and a limit price, which may or may not be the same.

What are market orders & stop orders?

Market orders, limit orders, and stop orders are common order types used to buy or sell stocks and ETFs. Learn how and when to use them. Learn about helping to manage risk by using bracket orders. Learn how stop orders can help traders gain better control of their trade objectives. Investing involves risks, including the loss of principal invested.

What is a sell stop limit?

Sell Stop Limit A sell stop limit is a conditional order to a broker to sell the stock when its price falls up to a specific price – i.e., stop price. A sell stop price has two price components – i.e., a stop price and a limit price.