Stop-Limit Order

A conditional order that combines features of a stop order and a limit order. When the stop price is triggered, the order becomes a limit order to buy or sell at the specified limit price or better, rather than executing at the market price. This gives the trader price control but introduces the risk that the order may not fill at all if the market moves through the limit price too quickly. Stop-limit orders are popular for managing risk in volatile, gap-prone stocks.