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Stop-limit order

Stop order that converts to a limit order, not a market — avoids bad slippage.

A stop-limit order has two prices: a stop (trigger) and a limit. When price reaches the stop, the order converts to a limit order at the limit price instead of firing at market. This caps the worst fill price you accept.

The trade-off is execution risk: if price gaps past the limit, the stop fires but the limit cannot fill — you end up with no execution and an exposed position. Stop-limit is the right choice when avoiding bad slippage matters more than guaranteed execution; stop-market is the choice when getting out matters more.

On exchange UIs the two prices are typically configured separately: stop = where the trigger sits, limit = the worst price you'll accept after firing. For long stops, limit is usually placed a tick or two below the stop; for shorts, above.

Esempio

Long at 50,000. Place a stop-limit sell with stop = 49,500 and limit = 49,450. If price hits 49,500 a limit sell at 49,450 is placed. If price gaps to 49,400 the limit does not fill.

Come Noon Barbari usa Stop-limit order

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Order types in the designer

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