Series 3: 6.3.1.3.2. Buy And Sell Stop-Limit Orders

6.3.1.3.2. Buy and Sell Stop-Limit Orders

Stop-limit orders are stop orders that become limit orders (rather than market orders) once the stop price is triggered. The stop price and the limit price often are identical. For example, if a trader puts in a buy limit order at 25, and the stock goes up to 25, triggering the stop order, the order will now become a buy limit order at 25, meaning that it will be filled at that price or lower. A buy limit order requires a price of 25 or lower. If the price of the stock is increasing