What Is a Stop-Limit Order?

A Stop-Limit Order combines a trigger price with a set execution price — once the market reaches your stop price, the order activates as a Limit Order that only executes at your specified limit price or better.

Good to know:

• Two prices involved: the stop price (activates the order) and the limit price (the price it then tries to execute at).
• Once triggered, it behaves like a Limit Order — it may not execute if the market never reaches your limit price.

Related questions:

Q: What's the difference between a Stop Order and a Stop-Limit Order?
A Stop Order becomes a Market Order once triggered; a Stop-Limit Order becomes a Limit Order once triggered.

Q: Is a Stop-Limit Order guaranteed to execute?
No — once triggered it behaves like a Limit Order, so it may not execute if price skips past your limit.