Trading glossaryReviewed 16 July 2026
Definition
A stop-limit order releases a limit order after its stop condition is met, combining a trigger with a defined execution-price boundary.
In market context
The stop controls when the instruction activates, while the limit controls the acceptable price after activation. This avoids fills beyond the limit but creates non-execution risk if the market gaps or moves through the permitted range without available liquidity. Stop and limit prices can be equal or different, and users should understand the venue’s trigger source and order duration carefully.
Risk context
Price protection can prevent the order from closing the position at all during a fast adverse move.
Source
Use the primary source for fuller regulatory or market context.