Order Type
Stop-Limit Order — Definition & Example
A stop order that converts to a limit order (instead of a market order) when triggered.
Stop-limit orders combine the trigger of a stop with the price-control of a limit. When the stop price is hit, the order becomes a limit order at the specified limit price. This protects against slippage in fast markets but introduces the risk that price keeps moving past the limit and the order never fills — leaving you with unprotected losses. Use carefully in volatile instruments.
Example
Stop ₹490, limit ₹489. If price hits ₹490, a limit sell at ₹489 is placed. If price drops straight to ₹485 with no fills at ₹489, the stop-limit doesn't execute and you stay long.
Related
See stop-limit order in your own trades
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