Stop-limit order

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Stop-limit order

A stop order that designates a price limit. Unlike the stop order, which becomes a market order once the stop is reached, the stop-limit order becomes a limit order.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Stop-Limit Order

A stop order that becomes a limit order when the stop price is reached.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

stop-limit order

A specialized order in which a limit order and a stop order are combined. Once the specified stop price has been reached or exceeded, the stop-limit order becomes a limit order. A stop-limit order differs from a stop order, which becomes a market order when the stop price has been reached or exceeded. A stop-limit order to buy must have a stop-limit price above the market price; conversely, a stop-limit order to sell must have a stop-limit price below the security's market price. In response to a stop-limit order specifying "sell 100 GY 15 stop limit," once the stock sells at or below $15, the order becomes a limit order to sell 100 shares at a price of $15. A variation of the stop-limit order specifies a limit price lower than the stop price.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Stop-limit order.

A stop-limit is a combination order that instructs your broker to buy or sell a stock once its price hits a certain target, known as the stop price, but not to pay more for the stock, or sell it for less, than a specific amount, known as the limit price.

For example, if you give an order to buy at "40 stop 43 limit," you might end up spending anywhere from $40 to $43 a share to buy a stock, but not more than $43.

A stop-limit order can protect you from a rapid run-up in price -- such as those that may occur with an initial public offering (IPO) -- but you also run the risk that your order won't be executed because the stock's price leapfrogs your limit.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Using multiple communication channels that include smartphone applications and direct phone calls, customers can place market orders (MKT), limit orders (LMT), stop loss/profit orders (STP), limit stop loss/profit orders (STP LMT), market on close orders (MOC), limit on close orders (LOC), trail orders, and trail stop limit orders.
More to the point, have they actually sold out or are they staying in the market and placing some stop limit orders that get them out if it turns negative?
Perfect for traders who prefer market execution but still want to trade on a MetaQuotes platform, FxPro MT5 also features a number of updates to its predecessor, including more timeframes, drawing tools, buy and sell stop limit orders, tick chart trading and full market depth.