What is a stop limit order? (Coming Soon!)

A stop limit order triggers a limit order once the stop price is reached. The most popular use case for a stop limit is a sell, as these orders offer the ability to get out of a position if the market is in a decline.  

For a sell order, the stop price must be below the last sale on entry and the price must be equal to or below the stop price. A sell stop order turns into a limit order when the last sale hits or goes below the stop price.  

When you are entering your buy stop limit, the stop price must be above the last sale on entry and the price must be equal to or above the stop price. A buy stop will turn into a limit order when the last sale goes above the stop price.

One thing to keep in mind with a stop limit order is that, once it turns into a limit order, you are not guaranteed an execution.  Shortly after breaching your trigger price, the market could move quickly, leaving your limit order open but not executed.

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