A stop limit is a conditional order placed with a broker to buy or sell a security at a specified price. The order becomes a market order when the security’s price reaches the stop price.
A stop limit order is not guaranteed to execute at the specified price.
NOTE: Warning: Stop Limit orders in Binance are a type of limit order that combines the features of stop-loss orders and limit orders. Stop Limit orders allow a trader to set two prices: the stop price and the limit price. When the stop price is reached, a limit order is created at the limit price. Be aware that there is no guarantee your order will be filled at or near the limit price, as market conditions may change quickly. As with any trading strategy, it is important to use caution when placing Stop Limit orders and to only risk what you can afford to lose.
A stop limit order combines the features of a stop order with those of a limit order. A stop limit buy order is placed below the current market price and is only filled at the limit price or higher; conversely, a stop limit sell order is placed above the current market price and is only filled at the limit price or lower.
As with any other type of order, a stop limit order may be subject to slippage, which occurs when the security’s actual price moves past the stop price without triggering the stop limit order. Slippage can occur in fast-moving markets and can result in an execution price that is different from the specified limit price.
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A stop limit order is an order to buy or sell a security 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. A stop limit order can be used to attempt to limit losses or lock in profits.
