What is a stop limit order?

[baron]

I’m learning stock trading and want to understand what is a stop limit order. When does it trigger, and when might it fail?

 

[peterkavinsky]

A stop-limit order is a trade that sets a stop price to trigger the order and a limit price that controls the highest or lowest price you’re willing to accept.

 

[alexmetro]

A stop-limit order is where you have a stop price which activates the order and a limit price which limits the worst price you will accept, so at the time the stop is reached, the order is filled, but at the time the market moves too fast and no-one is trading at the price you have specified as the limit, the order does not get filled; I learned this first hand when watching a sharp downwards move where my order was not filled at all.

 

[Blaise]

A stop-limit order is a trading order that becomes active once a stock hits a stop price, then places a limit order to buy or sell at a specified price or better—helping control execution price but not guaranteeing a trade.

 

[michaelowen]

A stop-limit order triggers a limit order once a specific stop price is reached, ensuring execution only at your chosen price.