What is stop limit mean?

The stop-limit order combines features of a stop-loss and limit order. It is a form of conditional trading that takes place over a specific timeframe and allows traders control over when the order should be executed. Put simply, for traders a stop-limit order means locking in profits or limiting losses.

What does stop limit order mean?

A stop-limit order is a tool that traders use to mitigate trade risks by specifying the highest or lowest price of stocks they are willing to accept. The trader starts by setting a stop price (order to buy or sell a stock once the price’s reached a specific point), and a limit price (an order to buy or sell a specific number of stocks when the price reaches a specific point).

What is stop and limit orders?

The stop price is the price that activates the limit order and is based on the last trade price. The limit price is the price constraint required to execute the order, once triggered.