The stop-limit order will be executed at a specified price, or better, after a given stop price has been reached.
Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.
What is a stop limit order to sell example?
Stop-Limit Order Example
If the stock dips to $45, the stop price triggers a limit order to sell at $45. If a rapid price decline takes the stock lower than $45, the limit order will ensure that you don’t sell at the lower price. The limit order will only execute when the stock reaches $45 again.
What is a sell limit order?
A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.
What is a stop quote limit order?
A stop-limit-on-quote order is basically a combination of a stop-loss order with a limit order. It enables an investor to have some downside protection to sell a stock at their lowest desired price if it falls, without exposing the sale to a market panic.
What is the difference between a limit order and a stop limit order?
A limit order is visible to the market and instructs your broker to fill your buy or sell order at a specific price or better. A stop order isn’t visible to the market and will activate a market order once a stop price has been met.
What is the difference between a stop market and stop limit order?
A buy stop is placed above the current market price. A sell stop order is placed below the current market price. Stop orders may get traders in or out of the market. A limit order will then be working, at or better than the limit price you entered.