Glossary

What is Stop-limit order

Once triggered, it places a limit order instead of a market one. The price is controlled, but if the market jumps past the limit, the order does not fill.

How it works

ETH 1m, 05.08.2024: a single minute blew through both the stop and the limit below it.

Example

A long, stop 2 503.6, limit 2 493.6. The 01:06 minute ran from 2 513.6 to 2 453.0. If the limit did not fill inside it, price never came back within the next hour: the high was 2 472.6.

Common mistake

Using a stop-limit with a narrow gap as your stop-loss: at the moment it matters, there will be no stop.

Read next

Frequently asked questions

Where can I learn Stop-limit order step by step?
In the Trading OS Academy: “Stop and take-profit are orders, not intentions”.
What is Stop-limit order related to?
Stop order (stop-market); Limit order; Stop-loss.

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