{"id":180262,"date":"2021-06-21T16:17:00","date_gmt":"2021-06-21T20:17:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/glossary-terms\/stop-limit-order\/"},"modified":"2025-04-04T14:20:55","modified_gmt":"2025-04-04T18:20:55","slug":"stop-limit-order","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/stop-limit-order\/","title":{"rendered":"Stop Limit Order"},"content":{"rendered":"\n<p>A <strong>stop limit order<\/strong> is a type of order used in trading to buy or sell a security once it reaches a specified price, but with a limit on the price at which the order will be executed. It combines features of both a <strong>stop order<\/strong> and a <strong>limit order<\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-how-it-works\">Here\u2019s how it works<\/h4>\n\n\n\n<p><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Stop price<\/strong>: You set a stop price (or trigger price). This is the price that will activate the order, causing it to become a live order in the market.<\/li>\n\n\n\n<li><strong>Limit price<\/strong>: After the stop price is reached, the order becomes a limit order, meaning it will only be executed at the limit price or better.<\/li>\n<\/ol>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-example\"><strong>Example<\/strong><\/h4>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Suppose you&#8217;re holding a stock, and you want to sell it if it starts falling, but only if you can get a good price.<\/li>\n\n\n\n<li>You set a <strong>stop price<\/strong> at $50 and a <strong>limit price<\/strong> at $49.\n<ul class=\"wp-block-list\">\n<li>If the stock price falls to $50 (or below), the order will trigger and become a sell limit order.<\/li>\n\n\n\n<li>However, the stock will only be sold if the price is at <strong>$49<\/strong> or higher. If the stock price falls too quickly and can&#8217;t find a buyer at $49 or better, the order will not be filled.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-key-points\"><strong>Key Points<\/strong><\/h4>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Protection<\/strong>: A stop limit order helps protect against excessive loss while ensuring that you don&#8217;t sell below a certain price.<\/li>\n\n\n\n<li><strong>Risk of non-execution<\/strong>: Unlike a regular stop order (which becomes a market order and is guaranteed to execute once triggered), a stop limit order can fail to execute if the price moves too quickly or if there&#8217;s no buyer\/seller at your limit price.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An instruction to the system to submit a buy or sell limit order when the user-specified stop trigger price is hit. The order has two components: the stop price and the limit price. When a trade has occurred at or through the stop price, the order becomes executable and enters the market as a limit order, which is an order to buy or sell at a specified price or better. For more information, see the\u00a0Stop Limit Orders\u00a0page.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":true,"footnotes":""},"traders-glossary":[13269,13251],"class_list":{"0":"post-180262","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-s","6":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"An instruction to the system to submit a buy or sell limit order when the user-specified stop trigger price is hit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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