Desde Investopedia

TERM OF THE DAY

Stop-Limit Order A stop-limit order is an order placed with a broker that combines the features of a stop order with those of a limit order. A stop-limit order will be executed at a specified price, or better, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.

Breaking it Down: A stop-limit order requires the setting of two price points. The first point initiates the start of the specified action, referred to as the stop, while the... Read More